Bajaj Finserv: Q2FY14 Results Review

Bajaj Finserv, a holding company of Bajaj Finance, Bajaj Life and General Insurance and Bajaj Financial Solutions, has announced its Q2FY14 results.

During the quarter, the total income from operations rose by 30% to Rs 1308.61 crore from Rs 1007.83 crore in Q2FY13. Its other income grew by an astounding 178% to Rs 81 lakh against Rs 29 lakh in the corresponding quarter last year.

The company’s operating expenses increased by 28% on a YoY basis to Rs 360.27 crore for Q2FY14. In the similar period in Q2FY13, the total expenses as a percentage of revenues stood at 27%, which has grown to 28% in the elapsed quarter.

Bajaj Finserv's EBITDA also increased by 30.64% to Rs 949.15 crore on a YoY basis. Its Assets under Management (AUM) stood at Rs 19829 crore as on September 30, 2013 versus Rs 17517 crore as on March 31, 2013.

The company has reported a growth of 28% in the consolidated net profits for the quarter ended September 2013 stood at Rs 276.5 crore over Rs 216.84 crore in Q2FY13.

In its statement, Bajaj Finserv maintained that, “In a challenging economic environment of slow growth, high inflation and high interest rates, the company has performed well”.

The company has established a strong presence in the life insurance, general insurance and consumer finance businesses. Going ahead, though the growth rates might moderate, the continuous rise and strong growth in the lending and general insurance businesses of this company will fuel its performance.