Bajaj Finance gains after good Q2 results

Bajaj Finance rose 1.95% to Rs 2,735.55 at 13:54 IST on BSE after net profit rose 18.03% to Rs 197.15 crore on 28.82% increase in total income to Rs 1241.83 crore in Q2 September 2014 over Q2 September 2013.

The result was announced during trading hours today, 14 October 2014.

Meanwhile, the BSE Sensex was down 50.55 points, or 0.19%, to 26,333.52.

On BSE, so far 6,037 shares were traded in the counter, compared with an average volume of 4,286 shares in the past one quarter.

The stock hit a high of Rs 2,780.45 and a low of Rs 2,715.30 so far during the day. The stock hit a record high of Rs 2,812.85 on 1 October 2014. The stock hit a 52-week low of Rs 1,251 on 15 October 2013.

The stock had outperformed the market over the past one month till 13 October 2014, rising 3.50% compared with 2.50% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 26.44% as against Sensex's 5.43% rise.

The large-cap company has an equity capital of Rs 50.14 crore. Face value per share is Rs 10.

Bajaj Finance's customers base increased 42% to 9.78 lakh in Q2 September 2014 over Q2 September 2013.

The company's assets under management (AUM) rose 41% to Rs 28004 crore in Q2 September 2014 over Q2 September 2013.

Net interest income rose 20% to 698 crore in Q2 September 2014 over Q2 September 2013. Deployments rose 50% to Rs 7816 crore in Q2 September 2014 over Q2 September 2013. Loan losses and provisions rose 54% to Rs 80 crore in Q2 September 2014 over Q2 September 2013.

Gross non-performing assets (NPA) and net NPA for Q2 September 2014 stood at 1.41% and 0.48% respectively as of 30 September 2014. The company continues to provide for loan losses in excess of RBI requirements. The portfolio remained healthy, the company said in a statement.

Capital adequacy ratio (including Tier-II capital) stood at 19.30%. The company during the quarter raised Tier-II capital of Rs 453 crore, which helped augment its capital adequacy by 125 bps. The company said it continues to be well capitalised to support its growth trajectory.

Meanwhile, the company said it intends to purchase, at an arm's length price, from its holding company Bajaj Finserv, their wholly-owned subsidiary Bajaj Financial Solutions together with its subsidiary, to promote the business of housing finance.

Bajaj Finance is a diversified non-banking financial company.

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