Bajaj Finserv's shares slipped over 2 percent to Rs 4,593 on the NSE after it posted weak March quarter results. The company reported a 77 percent year-on-year (YoY) decline in consolidated net profit to Rs 194 crore as compared to Rs 839 crore in the corresponding quarter last year.
Net profit of Bajaj Finserv dropped after it's lending assets impairment climbed to Rs 1,950 crore from Rs 410 crore last year.
“The MTM adjustment and the contingency provision, together considered as the Covid-19 impact, after adjusting for tax and the company’s interest in those subsidiaries, have impacted consolidated profit after tax of BFS for fourth quarter and 2019-20 by ₹ 807 crore,” it said in a statement on Thursday.
However, the top-line rose 3 percent YoY to Rs 13,294 crore in the quarter ended March 2020. Last year, it came in at Rs 12,994 crore. The interest income also surged 58 percent YoY to Rs 7,919 crore as compared to Rs 5,005 crore last year.
The company's total insurance business in the March quarter declined significantly by 22 percent YoY to Rs 6,066 crore.
The assets under management (AUM) came in at Rs 56,085 crore v/s Rs 60,789 crore, down 7.7 percent QoQ.
Commenting on the weak Q4FY20 performance, S Sreenivasan, CFO of Bajaj Finserv said, "The situation is still evolving and it is difficult to hazard a guess on how this pandemic will evolve. The company and its subsidiaries will be focusing on profitability over growth, seeking to conserve cash, borrowing long-term, strengthening collections, reducing overheads and preserving capital adequacy."
Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj group.
At 2:30 pm, the stock traded 3 percent lower to Rs 4,565 per share on the NSE.
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