Bajaj Finserv Q4 Results: Profit Falls 77% On Covid-19 Provisions
Bajaj Finserv Ltd., the holding company of Bajaj Group’s financial services business, saw its quarterly profit tumble as it made Covid 19-related provisions.
Net profit fell 77 percent over a year earlier to Rs 839 crore in the quarter ended March, according to its filing. The company recorded mark-to-market adjustment and a made contingency provision worth Rs 807 crore.
Revenue increased 2 percent to Rs 13,294 crore.
Bajaj Finserv is the parent of Bajaj Finance Ltd., Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance.
Bajaj Finance’s fourth-quarter profit fell as the non-bank lender’s impairment expenses jumped more than twofold, partly on account of a contingent provisions made to deal with the coronavirus crisis.
Bajaj Allianz General Insurance’s net earned premium rose by 3 percent to Rs 1,972 crore. Its net profit jumped 3.7 times to Rs 304 crore, mainly on account of higher underwriting of profits. Assets under management increased 9 percent to Rs 18,746 crore.
Bajaj Allianz Life Insurance new business premium fell 16 percent to Rs 1,519 crore, while renewal premium saw an uptick of 9 percent at Rs 1,610 crore. AUM was almost flat at Rs 56,085 crore due to decline in equity markets.
Consolidated net worth of Bajaj Finserv grew 32 percent to Rs 31,301 crore. The stock has fallen by 52 percent this year compared with a 25 decline in benchmark Nifty 50.