Bajaj Finserv Ltd (BFS) on Wednesday reported 18 percent fall in its consolidated net profit to Rs 986.29 crore for the second quarter ended September 30, as group entities suffered a contraction in profits. The company had posted a net profit of Rs 1,203.72 crore for the July-September quarter a year ago.
The total income (consolidated) rose 5.8 percent to Rs 15,051.59 crore during the second quarter, compared to Rs 14,224.22 crore in the year-ago period, BFS said in a regulatory filing. Bajaj Finserv is the holding company of financial services firms of the Bajaj group.
The financial statement by BFS included results of eight entities, including Bajaj Allianz Life Insurance Co Ltd (74 percent stake of the parent firm), Bajaj Allianz General Insurance Co Ltd (74 percent) and Bajaj Finance Ltd (52.74 percent). Bajaj Finance reported 36 percent decline in net profit to Rs 965 crore during the September quarter of FY21; Bajaj Allianz Life Insurance witnessed 53 percent fall in net profit to Rs 98 crore, and Bajaj Insurance General Insurance posted 13 percent rise to Rs 332 crore.
While BAGIC’s (Bajaj Allianz General Insurance) gross written premium was marginally lower due to the decline in sales of commercial vehicle insurance, travel insurance and tenders for government health business, it was able to deliver strong improvement in its underwriting result, continuing the trend from June quarter of 2020-21, the company said.
On the life insurance market, it said Bajaj Insurance Life Insurance was able to record excellent growth of 19 percent in individual rated new business premium in Q2FY21 while delivering solid growth in new business value even as the life insurance market recorded negative growth during the quarter.
”As a result of significant slowdown in economic activity post the complete nationwide COVID-19 lockdown, India’s GDP contracted sharply by 23.9 percent during Q1FY21. ”
However, economic growth started picking-up up the pace…With month-on-month growth being witnessed after the process of unlocking started, we are looking forward to the second half with greater optimism,” BFS said. Shares of BFS closed 0.75 percent down at Rs 5,905.90 apiece on BSE.
First Published: IST