Bajaj Finserv shares slip over 3% after reporting 3% decline in Q3 net profit

Bajaj Finserv shares tumbled over 3% to Rs 16713.05 on the BSE at 10:00 am after reporting disappointing Q3 results.

The company reported its consolidated net profits for the quarter ended December fell 2.63% to Rs 1,256 crore, down from Rs 1,290 crore in the previous year’s corresponding quarter.

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Total revenue increased 10.21% year on year (YoY) to Rs 17,589 crore from Rs 15,959 crore in the same quarter last year, according to the company.

“Economic conditions were better in Q3FY22 as compared to Q2FY22, although some key indicators like auto sales remain muted. The quarter also witnessed adverse weather events which impact the general insurance business,” the company said.

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“Towards the end of Q3, the emergence of the Omicron variant has sparked renewed concerns on its spread and containment measures. Under these dynamic circumstances, our businesses focused on growth.”

Bajaj Finserv is the holding company for Bajaj Finance, Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance.

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Bajaj Finance recorded 7.44 million new loans in Q3FY22, up from 6.04 million in the same period last year – a 23% rise. According to the company, Bajaj Allianz General Insurance maintained its market position and underwriting discipline in a difficult environment for the general insurance business, while its life insurance business continued to outperform the industry, recording industry-beating growth of 68% in individual rated new business premium in Q3FY22.

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“Risk of this (pandemic) is expected to remain elevated in Q4 of FY22. We, at Bajaj Finserv, remain watchful of the emerging situation. With strong solvency, well above the required capital supported by healthy liquidity, continued focus on risk and collections, digitised processes, improved cost structures and experience of the last 2 years, we hope to be in a better shape to face any adverse event,” the company management said.

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