Bajaj Finserv on Wednesday reported a 14.56 per cent rise in its consolidated net profit at Rs 1,290 crore during October-December quarter of the ongoing financial year on improvement in business conditions and mobility amidst the COVID-19 pandemic.
The company had reported a net profit of Rs 1,126 crore in the corresponding quarter of 2019-20 financial year.
However, it said the results may not be directly comparable with those of corresponding previous period as the rebound in equity markets from March 2020 levels has resulted in higher than normal mark-to-market gain on investments of insurance subsidiaries during the current quarter. This has resulted in an increase of Rs 384 crore in consolidated profit after tax for Q3 FY21.
Bajaj Finserv's total income rose to Rs 15,961 crore during the quarter under review from Rs 14,561 crore in the year-ago quarter.
"After extremely difficult conditions in H1 FY21, on the back of negative GDP growth in Q1 of 23.9 per cent, narrowing to negative 7.5 per cent in Q2, business conditions and mobility improved significantly in Q3 although still below pre-COVID levels," the company said in a release.
The profit after tax of Bajaj Finance Ltd, a subsidiary of the company, declined 29 per cent to Rs 1,146 crore from Rs 1,614 crore during October-December quarter a year ago. Its assets under management (AUM) stood at Rs 1,43,550 crore as of December 31, 2020 as against Rs 1,45,092 crore a year ago.
Gross written premium for Bajaj Allianz General Insurance Company Ltd, another subsidiary, rose 11 per cent to Rs 3,392 crore. On the other hand, new business premium for Bajaj Allianz Life Insurance Company Limited increased 21 per cent year-on-year to Rs 1,706 crore. Its gross written premium also rose 23 per cent to Rs 3,147 crore.
Considering the impact of COVID-19 pandemic, the company has managed well through "once in a life-time situation", and its focus remains on balancing growth with profitability, Bajaj Finserv said.
Bajaj Finserv is the holding company for various financial services businesses under the Bajaj group.