Bajaj Finserv Q4 Consolidated Net Profit Down By 22% At Rs 707 Crore

The company’s consolidated net revenue recorded marginal growth of 1.6% and stood at Rs 2050 crore in Q4FY14 against Rs 2017 crore in same period of last year.

However, EBITDA of the company fell by 3% to Rs 1658 crore in the said period from Rs 1711 crore in Q4FY13. EBITDA of the company fell due to rises in expenses during the quarter. Employee cost of the company grew by 43% to Rs 119 crore in Q4FY14 from Rs 83.5 crore in Q4FY13. Further other expenses of the company went up by 23% to Rs 272 crore from Rs 222 crore in same period last year.

Moreover, consolidated net profit of the company dropped by 22% to Rs 707 crore in said quarter as against Rs 912 crore in Q4FY13 on account of sharp increase in interest expenditure. The interest expenditure of the company increased by 36.4% during the quarter and stood at Rs 445 crore as against Rs 326 crore in same period of last year.

Coming to annualized performance, the company’s financial performance during FY'14 was not up to mark. The company recorded a considerable growth of 6% to Rs 16712 crore in FY'14 against Rs 15812 crore in last fiscal year. However, net profit of the company showed marginal decrease of 2% and came down to Rs 1544 crore in FY'14 against Rs 1574 crore in last fiscal year on account of increase in operating expenses and interest expenditure.

At CMP of Rs 820 per share the stock is trading at 5.4x of its book value which we conclude is fairly valued seeing the financial performance of the company during the year.