 "Ujjivan Financial hits highest level since listing post FY16 results")
Ujjivan Financial Services has surged 14% to Rs 304 on the BSE after the company posted a net profit of Rs 177 crore for the financial year 2015-16 (FY16), on the back of strong operational income. A microfinance company that also holds a small finance bank licence had reported a profit of Rs 76 crore in FY15.
Net interest income (NII) increased 82% to Rs 510 crore in FY16 against Rs 281 crore in the previous fiscal.
Announcing its first ever results post listing, the company said its net interest margin (NIM) had improved from 11.62% to 12.31% during the fiscal. While gross non-performing assets (NPAs) rose 8 basis points (bps) to 0.15% of the loan book, net NPAs went up by 2 bps to 0.04%.
Commenting on the results Samit Ghosh, Managing Director and CEO, said: “The healthy growth in our business is mainly due to enhanced scale of operations and improved productivity of existing staff. Additionally, continuous focus on reducing costs helped us in reporting a 134% growth in our net profit. This year we’ll be focusing on transition from micro finance institution (MFI) to an SFB (small finance bank) and building all the required blocks for the same."
The stock is currently trading at its highest level since listing on the bourses on May 10, 2016. It has appreciated 45% from its issue price of Rs 210 per share. The trading volumes on the counter have nearly doubled on Thursday, with a combined 5.2 million shares changed hands on the NSE and BSE till 10:22 AM.
Net interest income (NII) increased 82% to Rs 510 crore in FY16 against Rs 281 crore in the previous fiscal.
Announcing its first ever results post listing, the company said its net interest margin (NIM) had improved from 11.62% to 12.31% during the fiscal. While gross non-performing assets (NPAs) rose 8 basis points (bps) to 0.15% of the loan book, net NPAs went up by 2 bps to 0.04%.
Commenting on the results Samit Ghosh, Managing Director and CEO, said: “The healthy growth in our business is mainly due to enhanced scale of operations and improved productivity of existing staff. Additionally, continuous focus on reducing costs helped us in reporting a 134% growth in our net profit. This year we’ll be focusing on transition from micro finance institution (MFI) to an SFB (small finance bank) and building all the required blocks for the same."
The stock is currently trading at its highest level since listing on the bourses on May 10, 2016. It has appreciated 45% from its issue price of Rs 210 per share. The trading volumes on the counter have nearly doubled on Thursday, with a combined 5.2 million shares changed hands on the NSE and BSE till 10:22 AM.
