Bajaj Finance drops after Q1 results

Bajaj Finance lost 2.43% to Rs 1,369.95 at 13:08 IST on BSE after net profit surged 27% to Rs 176 crore on 33% growth in total income to Rs 932 crore in Q1 June 2013 over Q1 June 2012.

The Q1 result was announced during trading hours today, 18 July 2013.

Meanwhile, the S&P BSE Sensex was up 32.07 points or 0.16% at 19,980.80.

On BSE, 10,000 shares were traded in the counter as against average daily volume of 14,744 shares in the past one quarter.

The stock hit a high of Rs 1,431.40 and a low of Rs 1,352.55 so far during the day. The stock had hit a 52-week low of Rs 939.90 on 17 July 2012. The stock had hit a record high of Rs 1,591.20 on 21 May 2013.

The stock had underperformed the market over the past one month till 17 July 2013, sliding 2.19% compared with the Sensex's 3.22% rise. The scrip had, however, outperformed the market in past one quarter, jumping 22.99% as against Sensex's 6.5% rise.

The mid-cap company has equity capital of Rs 49.78 crore. Face value per share is Rs 10.

Bajaj Finance said that the profit after tax (PAT) of Rs 176 crore in Q1 June 2013 is its highest ever quarterly profit. Adjusted for the increase in standard assets provision of Rs 18 crore, the PAT in Q1 June 2013 would have been up by 35%, Bajaj Finance said.

Net interest income (NII) surged 37% to Rs 601 crore in Q1 June 2013 over Q1 June 2012.

Bajaj Finance's loan losses and provisions surged 46% to Rs 41 crore in Q1 June 2013 over Q1 June 2012.

Bajaj Finance's ratio of net non-performing assets (NPAs) to net advances stood at 0.25% as on 30 June 2013. The ratio of gross NPAs to gross advances stood at 1.14% as on 30 June 2013. The provision coverage ratio stood at 78% as of 30 June 2013. The company continues to provide for loan losses in excess of RBI requirements, Bajaj Finance said.

Bajaj Finance's capital adequacy ratio (CAR) including Tier II capital stood at 21.5%. The company continues to be well capitalized to support its growth trajectory, Bajaj Finance said.

Bajaj Finance's assets under management (AUM) surged 33% to Rs 19229 crore as on 30 June 2013, from Rs 14485 crore as on 30 June 2012.

Bajaj Finserv, the holding company of Bajaj Finance, has submitted its application to Reserve Bank of India (RBI) on 26 June 2013, for a banking license. It is proposed to do this by converting its subsidiary Bajaj Finance into a bank in terms of RBI Guidelines for Licensing of New Banks in the Private Sector dated 22 February 2013.

Bajaj Finance offers secured and unsecured loan. The company provides two-and-three wheeler loan, consumer durable loan, personal loans, loan against property, small business loans, construction equipment loan and loan against securities.

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