Bajaj Finance hits record high after strong Q3 earnings

The company announced the results during trading hours today, 15 January 2013.

Meanwhile, the BSE Sensex was up 86.52 points or 0.43% at 19,992.93.

On BSE, 24,690 shares were traded in the counter as against average daily volume of 14,420 shares in the past one quarter.

The stock hit high of Rs 1,458.70 so far during the day, which is a record high for the counter. The stock hit a low of Rs 1,404.10 so far during the day. The stock had hit a 52-week low of Rs 641 on 16 January 2012.

The stock had outperformed the market over the past one month till 14 January 2013, surging 8.18% compared with the Sensex's 3.05% rise. The scrip had also outperformed the market in past one quarter, jumping 15.96% as against Sensex's 6.59% surge.

The mid-cap company has equity capital of Rs 42.81 crore. Face value per share is Rs 10.

Bajaj Finance's interest and fee income jumped 37% to Rs 828 crore in Q3 December 2012 over Q3 December 2011. Net interest income (NII) rose 27% to Rs 507 crore during the quarter. Loan losses and provisions jumped 42% to Rs 51 crore. The provision coverage ratio stood at 80% as on 31 December 2012, lower than 81% as of 31 December 2011. The company continues to provide for loan losses in excess of RBI requirements, Bajaj Finance said in a statement.

The company's assets under management surged 41% to Rs 16844 crore as on 31 December 2012 from Rs 11919 crore as on 31 December 2011.

Bajaj Finance's net non-performing assets (NPA) ratio stood at 0.2% as on 31 December 2012, lower than 0.3% as on 31 December 2011.

The company's capital adequacy ratio (CAR) (including Tier-II capital) stood at 17.5% as on 31 December 2012. The company said it continues to be well capitalized to support its growth trajectory.

Bajaj Finance's total deployments rose 12% to Rs 5200 crore in Q3 December 2012.

Bajaj Finance's board of directors at a meeting held today, 15 January 2013, approved raising of funds through issue of 67.60 lakh equity shares of Rs 10 each to eligible shareholders on rights basis in the ratio of 3 rights equity shares for every 19 equity shares of the face value of Rs 10 each at Rs 1,100 per share (inclusive of premium of Rs. 1090 per share), aggregating to Rs 743.61 crore. The record date for determining the eligible equity shareholders is fixed as 25 January 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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