Ujjivan Financial Services shares gain over 8% post Q2 results

Shares of Ujjivan Financial Services advanced over 8 per cent on Friday despite the company reporting a net loss of Rs 11.95 crore in the quarter ended September due to rise in the non-performing loans. The company posted its results post market hours on Thursday.

It had registered a net profit of Rs 73 crore in the corresponding quarter last year. However, Ujjivan Financial Services narrowed down its losses in the quarter gone by compared with a net loss of Rs 74.94 crore reported in June quarter.

Asset quality of Ujjivan Financial Services improved in Q2FY18 over Q1FY18. Gross non-performing assets (NPA) stood at 4.99 per cent and net NPA came at 1.38 per cent in Q2FY18 as against 6.16 per cent and 2.30 per cent, respectively, in Q1FY18.

The scrip was gained 8.46 per cent to close at Rs 373.20 on BSE. Shares of the company opened at Rs 355 and touched a high and low of Rs 377 and Rs 353.40, respectively.

Samit Ghosh, MD & CEO, Ujjivan Small Finance Bank in a release said, “We have significantly reduced our losses in this quarter compared to the previous quarter due to lower credit cost and business volumes returning to normal levels. We expect credit costs to taper off to normal levels in the next two quarters and with business growth, we are on our way to a complete turnaround after absorbing the impact of demonetization on our business environment. Further, the collection efficiency continues impressively at 99.7% for all new business from January till September.”