Analyst Concall
Bajaj Fin aims 23% profit growth if external environ stable
This story was originally published at 21:44 IST on 29 January 2025
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NEW DELHI – Bajaj Finance Ltd. hopes to increase profits by more than 20% as long as the external environment does not weaken significantly, Managing Director Rajeev Jain said Wednesday. "We remain focused on delivering our medium-term guidance," Jain said in a post-earnings conference call with analysts.
"Given the current external environment, overall, I would say we would like to grow on a consolidated basis, balance sheet should grow by 25%, maintain credit cost below 2%, and deliver a corridor of 22-23% profit growth as we venture into the next fiscal," he said further. "The only thing I would flag if the external environment doesn't deteriorate significantly."
On Wednesday, Bajaj Finance reported 17% on-year rise in consolidated net profit for Oct-Dec to INR 42.47 billion, beating analysts' estimate of INR 41.72 billion, on the back of 28% growth in assets under management to INR 3.98 trillion as on Dec. 31. Jain said the company should end the year with assets under management around INR 4.20 trillion. In Oct-Dec, assets under management had increased by INR 241.19 billion. Shares of Bajaj Finance ended 2.0% higher Wednesday at INR 7,759.65 on the National Stock Exchange.
Jain also said opportunities for the non-bank lender "remain very large" and it has the capital, talent, franchise, distribution, and products to take advantage and grow, especially if credit cost reduces to 2.00-2.05%. "So, clearly, if credit comes into better control... we could accelerate, no question," Jain said. In Oct-Dec, Bajaj Finance's loan loss to average assets under finance was 2.16%. End
Reported by Siddharth Upasani
Edited by Rajeev Pai
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