Bajaj Finserv Q3 profit jumps 32%

Bajaj Finserv's consolidated net profit jumped 32.34% to Rs 1,125.64 crore on a 30.68% surge in total income to Rs 14,560.74 crore in Q3 December 2019 over Q3 December 2018.

The result was announced post market hours today, 29 January 2020. Ahead of the results, Bajaj Finserv advanced 2.77% to end at Rs 9,902.25.

Consolidated profit before tax (PBT) soared 18.12% to Rs 2,627.16 crore in Q3 December 2019 as against Rs 2,224.02 crore in Q3 December 2018. Tax expense reduced 19.18% to Rs 649.11 crore compared with Rs 803.22 crore in the corresponding quarter of the previous year.

"Economic conditions in the quarter continued to be weak with GDP growth dropping to 4.5% in Q2 FY20. Weak consumer demand in some pockets, unseasonal rainfall and volatile bond markets also contributed to difficult market environment for our businesses. The repo rate was further reduced by 0.25% in Q3 FY20 ending the quarter at 5.15%. However, longer term bond yields remained range bound. Even as economic conditions remained difficult, all the three businesses performed well, and the company has been able to record significant increases in consolidated revenue and profit after tax," Bajaj Finserv (BFS) said in a statement.

BFS is the holding company for the various financial services businesses under the Bajaj group. BFS participates in the financing business through its 52.82% holding in Bajaj Finance Limited (BFL) and in the protection business through its 74% holding in two unlisted subsidiaries, Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC).

"BAGIC and BALIC recorded strong growth in premium. BALIC's assets under management crossed Rs 60,000 crore during the quarter. BAGIC's profit, however, was affected by continued unseasonal rainfall, which extended well into Q3," it said in a release.

Bajaj Finserv remains a debt free company and its surplus funds (excluding group investments) stood at Rs 910 crore as of 31 December 2019 as compared to Rs 830 crore on 31 December 2018.

Bajaj Finserv is a holding company for various financial services businesses. The firm is engaged in the business of promoting financial services, such as finance, insurance and wealth management, through its investments in subsidiaries and joint ventures. The company is also engaged in the business of generating power through wind turbines, a renewable source of energy.

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