Bajaj Finserv’s consol net profit growth slowest in 12 quarters

Informist NEW delhi

Bajaj Finserv Ltd's consolidated net profit for the quarter ended December 31 rose at its slowest on-year pace in 12 quarters due to a large net loss on fair value changes and expenses growing faster than the top line. 

The non-bank finance company's consolidated net profit rose only 3.4 per cent on year to Rs 22.31 billion in the December quarter, up 6.9 per cent sequentially.  Bajaj Finserv is the non-operating holding company of Bajaj Finance Ltd, Bajaj Allianz General Insurance Co. Ltd, Bajaj Allianz Life Insurance Co Ltd, and Bajaj Finserv Asset Management Ltd. Bajaj Finance, in turn, is the promoter of Bajaj Housing Finance Ltd and Bajaj Financial Securities Ltd. 

Following the result, shares of Bajaj Finserv slumped 2.5 per cent to Rs 1745.20 on Wednesday on the National Stock Exchange. The company declared its result during market hours. The net loss on fair value changes for Bajaj Finserv was Rs 10.06 billion in Oct-Dec, against a gain of nearly Rs 8 billion a year ago. 

This pulled down revenue growth to 10.3 per cent on year, with expenses rising 11.1 per cent.