Asset deployment improved in July, says Magma survey

Mumbai-based NBFC, Magma Fincorp Limited conducted a survey of three lakh customers across cars, commercial equipment (CE), commercial vehicle (CV) and tractor segments recently.

The survey found that on a weighted average basis, deployment across asset classes has improved in July as compared to April this year.

Deepak Patkar, CEO – ABF Biz, Magma Fincorp, said, “Magma is committed to ‘Investing in the smallest dream’. We believe the act of a first-generation entrepreneur seeking finance for buying a productive asset represents the very soul of financial inclusion – it is thousands of such customers that are helping build a modern India from the grassroots.”

Commercial vehicles/Construction equipment: The segment saw a ten-fold increase in vehicle deployment between April and July. Out of the 60 pc asset deployment, load utilisation was 50 pc.

Personal cars: The personal car segment comprised customers whose cash flows are largely dependent on their businesses. There has been an improvement in the cash flow situation. Customers who have largely been in addressing downstream customers from essential goods, agri-based & FMCG sectors are showing positive trends vis à- vis customers in sectors such as garments, gems & jewellery etc.

Commercial cars: Taxi segment, which includes app cab and tour operators, has seen low deployment.

Tractors segment: For agriculture–based usage bumper Rabi crop harvest and timely Government Interventions enabled farmers to improve crop sale and cash flows during challenging times. Seventy per cent of the customers were able to make their payments on time. For commercial usage, improvement is to be seen as cash flow crunch persists due to deployment issues.