Bajaj Finance shares surged as much as 11.26 per cent on Tuesday after the company reported 53.82 per cent rise in net profit at Rs 423.99 crore for the quarter ended June 30, 2016 against Rs 275.63 crore in the corresponding quarter a year ago. Net total income from operations jumped by 38.89 per cent year-on-year to Rs 2,286.40 crore against Rs 1,646.21 crore in the same quarter last year.
At 2 pm, share of Bajaj Finance were trading 9.72 per cent up at Rs 9,850.95. The scrip opened at Rs 9,011.05 and has touched a high and low of Rs 9,990 and Rs 8,900, respectively, in trade so far. Later, the scrip closed 9.75 per cent up at Rs 9,853.40.
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In a separate filing, Bajaj Finance also informed bourses that the board at its meeting held on July 26, 2016 has approved sub-division of equity shares of face value of Rs 10 each into equity shares of face value of Rs 2 each and issue of one fully paid bonus equity share of the face value of Rs 2 each for one equity share of the face value of Rs 2 each (as adjusted for subdivision of shares).
During April-June period, the company reported 39.59 per cent rise in operating profit at Rs 1,550.82 crore against Rs 1,110.99 crore in the same period last year. Expenditure increased by 37.70 per cent on year-on-year basis.
KR Choksey Shares and Securites in a research note said, “It was a stellar quarter by Bajaj Finance, firing on all cylinders with robust earnings that grew 54 per cent Y-o-Y buoyed by sturdy NII reporting 44 per cent growth and staggering 40 per cent Y-o-Y AUM growth in turn largely driven by rural finance book.”
According to Emkay Research, Bajaj Finance reported higher-than-expected net operating income, operating profit and net profit for the quarter ended June 30, 2016.