Bajaj Finance June qtr net nearly doubles, shares up
Financial services provider Bajaj Finance's June quarter net profit nearly doubled on high income from operations, sending its shares up as much as 5.4% today.business Updated: Jul 13, 2011 14:08 IST
Financial services provider Bajaj Finance's June quarter net profit nearly doubled on high income from operations, sending its shares up as much as 5.4% today.
The non-banking finance company posted a net profit of 908.1 million rupees in the June quarter compared with 467.8 million a year ago. Total income rose to 4.5 billion rupees in the period from about 3 billion rupees.
Bajaj Finance lends to consumer durables, two-wheelers, mortgages and construction equipment segments and is planning to raise funds through a share sale to institutions.
At 12.28 p.m., its shares, valued by the markt at $520 million, were up 4.15% at 657.95 rupees.
They fell nearly 12 percent in the June quarter and are down about 7% so far this year.
"The company has been growing at a robust pace,"
Antique Broking, which has a 'buy' rating on the stock, said in a note on June 24.
"It is well-positioned to deliver sustainable and profitable growth which is scalable with lower risk as the company intends to focus on secured business lines. This should lead to significant re-rating of the stock," it added.
In May, a top executive had told Reuters that loan growth may slow and margins could compress in the year to March 2012 but its diversified portfolio will help cushion the impact.