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Bajaj Finserv vaults on strong Q2 outcome

Capital Market / 09:57 , Oct 20, 2011

Bajaj Finserv jumped 7.52% at Rs 584.40 at 9:54 IST on BSE after consolidated net profit surged 127.9% to Rs 158.19 crore on 51.6% increase in total income to Rs 714.20 crore in Q2 September 2011 over Q2 September 2010.

The result was announced during trading hours on Wednesday, 19 October 2011.

Meanwhile, the BSE Sensex was down 217.48 points, or 1.27%, to 16,867.86.

On BSE, 1.17 lakh shares were traded in the counter as against an average daily volume of 62,984 shares in the past one quarter.

The stock hit a high of Rs 586 and a low of Rs 551.25 so far during the day. The stock had hit a 52-week high of Rs 625 on 30 August 2011 and a 52-week low of Rs 395.20 on 31 January 2011.

The stock had underperformed the market over the past one month until 19 October 2011, sliding 1.53% compared with the Sensex's 2.03% rise. The scrip had outperformed the market in past one quarter, falling 1.18% as against 8.41% decline in the Sensex.

The large-cap financial services company has an equity capital of Rs 72.34 crore. Face value per share is Rs 5.

Bajaj Finserv said it recorded strong quarterly numbers on the back of robust performance of its underlying subsidiaries. The company said its life insurance business' profit surged 48% to Rs 295 crore, general insurance business' profit galloped 83% to 64 crore and its subsidiary Bajaj Finance's profit zoomed up 64% to 87 crore in Q2 September 2011 over Q2 September 2010.

Bajaj Finserv said its solvency ratio stood at a healthy 447% as on 30 September 2011 as against the minimum regulatory requirement of 150%.

Total investments as at 30 September 2011 stood at Rs 36946 crore. In this challenging environment, the company said it focused on cost rationalisation initiatives. Ratio of total commission expenses to gross written premium (GWP) for the quarter came down to 6.73% from 7.55%.

Bajaj FinServ is a holding company with business interests in life insurance, general insurance, lending and financial advisory and wealth management through its various subsidiary companies.

 



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