Bajaj Finance shares plunge over 4 pc on Q1 earnings disappointment

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Bajaj Finance Limited is one of the largest players in the consumer finance business in India. It is pioneer in introducing interest-free EMI finance.
interest-free EMI finance

New Delhi, Jul 21 (PTI) Shares of Bajaj Finance declined over 4 per cent on Tuesday after the company reported a 19 per cent fall in its consolidated net profit for the June quarter

The stock tumbled 4.31 per cent to close at Rs 3,292.90 on the BSE. During the day, it plunged 6.43 per cent to Rs 3,220.

On the NSE, it slumped 3.99 per cent to settle at Rs 3,304.

It was the biggest laggard on both BSE 30-share index and NSE Nifty.

In terms of volume, 10.38 lakh shares were traded on the BSE and 2.59 crore on the NSE.

Bajaj Finance on Tuesday reported a 19 per cent fall in consolidated net profit at Rs 962.32 crore for the first quarter of the current fiscal on higher provisioning.

The company had posted a net profit of Rs 1,195.25 crore during the corresponding April-June period of 2019-20.

Sequentially, the net profit was higher compared to Rs 948.10 crore in the quarter ended March 2020.

Total income (consolidated) rose to Rs 6,649.74 crore in the quarter ended June 2020 from Rs 5,807.76 crore in the same period a year ago, Bajaj Finance said in a regulatory filing.

The consolidated financial results include earnings from Bajaj Housing Finance and Bajaj Financial Securities — which are the two fully-owned subsidiaries of the company.

Bajaj Finance said the COVID-19 pandemic and the consequent lockdown has considerably impacted the group’s business operations for the quarter ended June 2020.

“Apart from other adverse effects, the pandemic has also resulted in a significantly lower business acquisition and put constraints on recovery of overdues from customers during the quarter ended June 2020. Further…the group has offered EMI moratorium to its customers based on requests as well as on a suo-moto basis,” it said.

Source:PTI

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