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Bajaj Finserv gains after robust Q2 outcome

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Capital Market
Last Updated : Oct 23 2019 | 10:51 AM IST

Bajaj Finserv rose 2.69% to Rs 8218.15 after consolidated net profit rose 70.98% to Rs 1203.72 crore on 46.67% rise in total income to Rs 14224.22 crore in Q2 September 2019 over Q2 September 2018.

The result was announced after market hours yesterday, 22 October 2019. Meanwhile, the S&P BSE Sensex was up 141 points or 0.36% to 39105.33.

Bajaj Finserv (BFS) is the holding company for the various financial services businesses under the Bajaj group. BFS participates in the financing business through its 54.81% holding in Bajaj Finance (BFL) and in the protection business through its 74% holding in two unlisted subsidiaries, Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC). Bajaj Housing Finance (BHFL), which does mortgage business, is a wholly-owned subsidiary of Bajaj Finance.

All three companies-BFL, BAGIC and BALIC-recorded strong growth in revenues/premiums.

BFL's consolidated profit after tax rose 63% to Rs 1,506 crore in Q2 September 2019 over Q2 September 2018. This includes the impact of lower corporate tax rate. BFL intends to exercise the option to compute corporate tax at lower rate (25.17%).

BAGIC's profit after tax rose 62% to Rs 294 crore in Q2 September 2019 over Q2 September 2018. This includes the impact of lower corporate tax rate. BAGIC intends to exercise the option to compute corporate tax at lower rate (25.17%).

BALIC shareholders' profit after tax rose 57% to Rs 207 crore in Q2 September 2019 over Q2 September 2018. Higher profit on sale of investments of Rs 54 crore (Rs 46 crore after tax) and realignment of provision for impairment of Rs 37 crore (Rs 32 crore after tax) contributed to this increase.

On the BSE, 6,145 shares were traded in the counter so far compared with average daily volumes of 21,859 shares in the past two weeks. The stock hit a high of Rs 8270 and a low of Rs 8094 so far during the day.

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The stock hit a 52-week high of Rs 8668.65 on 30 Sep 2019. The stock hit a 52-week low of Rs 4960 on 24 Oct 2018.

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First Published: Oct 23 2019 | 10:35 AM IST

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