Financial services conglomerate Bajaj Finserv on Wednesday reported a net profit of Rs 979 crore for the quarter ended March 31, up nearly five times from Rs 194 crore in Q4 FY20.
The non-banking finance company said its total revenue from operations jumped 16 per cent to Rs 15,387 crore in Q4 FY21 as aginst Rs 13,294 crore in the same period of previous fiscal.
Given the impact of the COVID-19 pandemic, said Bajaj Finserv, FY21 was expected to be an extremely demanding year and so it turned out to be. In fact, the negative growth in GDP was much larger than expected in Q1 FY21 as GDP contracted by 24.4 per cent followed by a further 7.3 per cent contraction in Q2 FY21.
"Thankfully, we began to witness resumption of economic activity in the second half of the year wherein Q3 FY21 recorded a GDP growth of 0.4 per cent and Q4 FY21 is expected to show relatively robust growth," it said.
The second advance estimates of national income for FY21 released by the Central Statistical Office (CSO) indicates a negative GDP growth of 8 per cent for FY21, the company said in a statement.
"As a result, Bajaj Finserv had satisfactory profit growth on a consolidated basis in an extremely demanding year."
The company continues to hold a management overlay of Rs 840 crore in provisions, given the dynamic and evolving nature of the pandemic along with other variables.
The board of directors has recommended a dividend of Rs 3 per share (about 60 per cent). The total amount of dividend amounts to Rs 47.74 crore.
( With inputs from ANI )
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