 "Ujjivan Financial Services fall 7% on weak Q4 results")
Ujjivan Financial Services has dipped 7.6% to Rs 353 on BSE in noon deal trade after the company reported a sharp 64.8% year on year (YoY) decline in its consolidated net profit at Rs 19.35 crore for the quarter ended March 2017 (Q4FY17). The company had posted a net profit of Rs 54.91 crore in the corresponding quarter of 2015-16.
There was a decrease in the company's net interest income to Rs 128 crore, down 15.5% from the year-ago period. Net interest margin (NIM) decreased to 8.61% in Q4FY17 from 12.65% in Q4FY16 and 13.22% in Q3FY17.
“The Q4 profits were mainly impacted due to increased operating cost on account of transition to Small Finance Bank (SFB). Further the yield has also got impacted due to investments and reserves for the SLR & CRR, which was complied with from the inception of banking operations. We expect the impact of the higher operating expense and credit costs to continue for the next couple of quarters. However our growth trajectory will continue on a sustained mode” said Sudha Suresh, MD & CEO Ujjivan Financial Services.
At 02:39 pm; the stock was down 6.8% at Rs 356 against 0.01% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 3.5 million shares changed hands on BSE and NSE so far.
There was a decrease in the company's net interest income to Rs 128 crore, down 15.5% from the year-ago period. Net interest margin (NIM) decreased to 8.61% in Q4FY17 from 12.65% in Q4FY16 and 13.22% in Q3FY17.
“The Q4 profits were mainly impacted due to increased operating cost on account of transition to Small Finance Bank (SFB). Further the yield has also got impacted due to investments and reserves for the SLR & CRR, which was complied with from the inception of banking operations. We expect the impact of the higher operating expense and credit costs to continue for the next couple of quarters. However our growth trajectory will continue on a sustained mode” said Sudha Suresh, MD & CEO Ujjivan Financial Services.
At 02:39 pm; the stock was down 6.8% at Rs 356 against 0.01% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 3.5 million shares changed hands on BSE and NSE so far.
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