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Informist, Tuesday, Jul 23, 2024

 

--Bajaj Finance Apr-Jun consol PAT 39.12 bln rupees vs 34.37 bln

--Bajaj Finance Apr-Jun consol revenue 160.99 bln rupees vs 124.98 bln

--Analysts saw Bajaj Finance Apr-Jun consol PAT 40.33 bln rupees

--Bajaj Fin consol AUM at 3.54 trln rupees as on Jun 30, up 31% YoY

--Bajaj Finance Apr-Jun consol NII 83.65 bln rupees, up 25% on year

--Bajaj Finance gross NPA ratio 0.86% as on Jun 30

--Bajaj Finance net NPA ratio 0.38% as on Jun 30

 

MUMBAI – Bajaj Finance Ltd's consolidated net profit for Apr-Jun rose 13.8% on year to 39.12 bln rupees, but missed the Street's view due to a sharp rise in provisions and losses on loans. Analysts expected the diversified non-banking finance company to report a consolidated net profit of 40.33 bln rupees. Loan losses and provisions for Apr-Jun surged 69.3% on year to 16.85 bln rupees.

 

"Loan losses and provisions in Apr-Jun were elevated primarily on account of muted collection efficiencies," the company said in an investor presentation. The company's stage-II assets in Apr-Jun went up by 8.65 bln rupees from a quarter ago.

 

"The company is augmenting its debt management infrastructure as a mitigation measure. The company remains watchful across portfolios and is also proactively pruning segments," it said.

 

Given elevated stage-II assets, loan losses may remain at current levels in Jul-Sep and should start to normalise by Oct-Dec, the company added.

 

Bajaj Finance's net interest income increased by 25% to 83.65 bln rupees on the back of strong growth in assets under management, which grew 31% to 3.54 trln rupees as on Jun 30. Assets under management rose by 235.77 bln rupees during Apr-Jun.

 

The consolidated revenue from operations for the reporting quarter was up 28.8% on year to 160.99 bln rupees.

 

As per the company's long-term guidance on financial metrics, growth in assets under management and profit is seen in the ranges of 25-27% and 23-24%, respectively.

 

The number of new loans booked in Apr-Jun grew by 10% on year to 10.97 mln as against 9.94 mln in the corresponding quarter a year ago. The company resumed sanctioning and disbursal of loans under "eCOM" and "lnsta EMI Card" and issuance of EMI cards after the Reserve Bank of India removed the restrictions on these businesses on May 2.

 

In November, the central bank took action as the company failed to adhere to the digital lending norms of the RBI, such as non-issuance of key fact statements to borrowers under the two lending products mentioned, and deficiencies in those statements issued in respect to other digital loans sanctioned by the company.

 

The company’s customer franchise stood at 88.11 mln on Jun 30 as compared to 72.98 mln a year ago. The company's customer franchise grew by 4.47 mln in Apr-Jun.

 

The gross non-performing assets were at 0.86% as on Jun 30, slightly higher than 0.85% a quarter ago, but lower than 0.87% a year ago. Net NPA ratio as of Jun 30 was 0.38% as against 0.31% a year ago and 0.37% a quarter ago.

 

The long-term guidance for gross non-performing assets ratio is in the range of 1.2-1.4% and net NPA in 0.4-0.5%. 

 

BAJAJ HOUSING FINANCE

 

The housing finance subsidiary Bajaj Housing Finance’s assets under management grew by 31% to 970.71 bln rupees as on Jun 30.

 

Gross NPA and net NPA of Bajaj Housing Finance were 0.28% and 0.11%, respectively, as against 0.23% and 0.08% a year ago. The housing finance arm has a provisioning coverage ratio of 59% on stage-III assets.

 

Bajaj Housing Finance filed a draft red herring prospectus on Jun 8 with the Securities and Exchange board of India for an initial public offering and awaits clearance.

 

Today, shares of Bajaj Finance closed 2.3% lower at 6,727.10 rupees on the National Stock Exchange. The company detailed its earnings after the market hours.  End

 

Reported by Richard Fargose

Edited by Deepshikha Bhardwaj

 

 

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