Max Financial Services Ltd shares climbed as much as 7.7% in intra-day trade on Thursday, i.e. 7 November, even as the company posted a decline of 49% year-on-year in consolidated net profit for the quarter ended September (Q2).
At 12:23 pm, shares of Max Financial Services were trading at Rs 464.90, up 6%, after hitting an intra-day high of Rs 472.60. Notably, the stock has risen nearly 15% in the last one year.
Max Financial Services on Wednesday said that consolidated net profit fell to Rs 42.20 crore in the September quarter compared with Rs 82.70 crore in the year-ago quarter. Consolidated revenue grew 8.6% year-on-year to Rs 4,686 crore during the quarter compared with Rs 4,315 crore a year ago.
Commenting on the financial performance, the company’s managing director Mohit Talwar said: “Max Life has delivered on most of its financial parameters in H1FY20. Max Life outperformed the private industry growth by over 6% in the first half of the financial year. Going forward, our focus will be on strengthening the protection business, enhancing current products, successful execution of the agency excellence program with New York Life consultants as well as consistent business development efforts.”
Max Financial Services also announced that the company, along with its subsidiary Max Life Insurance Company, have mutually agreed to terminate the transaction with Mitsui Sumitomo Insurance Company announced in August this year. Max Financial had announced that Mitsui Sumitomo was to be issued 21.45% stake in the company at Rs 421.67 per share through a preferential allotment. In exchange, Max Financial Services was to acquire 19.98% stake in Max Life from Mitsui Sumitomo Insurance at Rs 80.89 per share.
“MFS, MSI and MLIC could not reach an agreement for the finalisation of the definitive documents and have mutually agreed to terminate the transaction (including the proposed preferential allotment and the Term Sheet) and continue their existing joint venture arrangements with respect to Max Life Insurance Company,” said Max Financial Services in an exchange notification.