Bajaj Finance Net Profit for the September quarter drops 36% to INR 965 crore

‘P. Sarojini’

New Delhi (CWBN)_ Bajaj Finance announced on Wednesday that their net profit in the July-September period was at INR 964.88 crore, which marks a fall of 35.94 per cent compared to the same period a year ago. The non-banking financial company said that its total income in the second quarter of the current fiscal year is INR 6523.29 crore, which is up 3.17 per cent from the year ago period. The shares of Bajaj Finance ended 0.88 per cent lower at INR 3,233.25 apiece on the BSE, having declined as much as 4.92 per cent after the announcement during the session.   

Pune-based Bajaj Finance reported that the company’s business operations in the April-September period of the current fiscal year have been affected by the corona virus pandemic and continuous lockdowns. The pandemic outbreak has affected several countries including India.   

The company said that the pandemic had its impact on the main business activities which resulted in a significantly lower business acquisition and put constraints on recovery of overdues from customers. At the end of September quarter, the company’s net interest income – a measure of profitability – increased 4.13 per cent to INR 4,165 crore.

In the quarter ended September 30, the total expenses of the company increased to INR 5,217.82 crore, which is up 21.33 per cent compared to INR 4,300.67 crore in the year-ago period. However, Bajaj Finance had earlier said that the company had taken significant measures to bring down the operation expenses and the expenses dropped 16.18 per cent to INR 1,160 crore.

The Bajaj Finance stock traded with high volumes. On Wednesday, a total of 2.38 lakh shares changed hands on the BSE, as against a daily average of 1.71 lakh over the past two weeks.