Q1 Results: Bajaj Finserv Hits Lifetime High As Net Profit Surges
Shares of Bajaj Finserv Ltd. today rose the most in a year to hit a lifetime high after the investment management company’s profit surged in the first quarter ended June.
The Pune-based company’s consolidated net profit rose 41 percent year-on-year to Rs 826 crore in April-June, according to its exchange filling. Consolidated income grew 16 percent to Rs 8,771 crore from Rs 7,536 crore in the year-ago period.
Bajaj Finserv is the parent company for listed Bajaj Finance Ltd. and unlisted Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company.
While Bajaj Finance reported an 81 percent jump in June quarter profit, its general insurance arm Bajaj Allianz General Insurance saw a 25 percent growth in gross written premium, excluding crop insurance, at Rs 2,419 crore.
Life insurance business’ first-year cost remains high because of higher customer acquisition cost and management expenses, Bajaj Finserv’ Chief Financial Officer S Sreenivasan told BloombergQuint. “As we continue to grow, there will be strain on profits for life insurance business.”
The company’s tie-ups with various banks for selling insurance is paying off and, in the next two-three years, it will be the engine of growth for the company, Sreenivasan said.
We expect to launch two new life insurance products during the course of the year, which will supplement traditional products.S Sreenivasan, CFO, Bajaj Finserv
Shares of Bajaj Finserv rose as much as 5.7 percent, the most in a year, to hit a record Rs 6,656.90. The stock was the second-best performer on the Nifty.