Bajaj Finance Q3 Results: Profit Up 21% On Higher Income From Operations

Bajaj Finance Ltd. has reported a rise in net profit in the third quarter of fiscal 2024 on higher revenue from operations.

The company's standalone bottom line rose 21% year-on-year to Rs 3,177.4 crore for the quarter ended December, according to an exchange filing on Monday. Analysts polled by Bloomberg estimated a standalone net profit of Rs 3,576 crore.

Bajaj Finance Q3 FY24 Highlights (YoY)

• Net profit up 21% at Rs 3,177 crore (Bloomberg estimate: Rs 3,576.60 crore).

• Total income rises 31% to Rs 12,103 crore (YoY).

• Gross NPA at 1.18% vs 1.14% (QoQ).

• Net NPA at 0.46% vs 0.39% (QoQ)

Bajaj Finance's net interest income rose 30% in Q3 to Rs 6,973 crore as compared with the same period last year. The total revenue from operations rose 31.3% to Rs 12,100 crore in Q3, from the corresponding period a year ago.

Pre-provisioning operating profit rose 27% in the reporting quarter to Rs 5,539 crore from a year ago. Loan losses and provisions, too, grew 54% year-on-year to Rs 1,248 crore in the quarter under review.

Provisioning coverage ratio as of Dec. 31 was 62%.

"A mixed quarter. Good quarter on AUM, customer acquisition, portfolio metrics and operating efficiencies. Strengthened capital position with a raise of ₹ 9,097 crore. Dampener for the quarter were elevated loan losses and impact of regulatory action," the company said in its investor presentation.

The non-bank financier's assets under management grew by 38% to Rs 2.32 lakh crore as of Dec. 31, from Rs 1.68 lakh crore a year ago.

On Jan. 3, Bajaj Finance, in its provisional numbers for the December quarter, had said that the NBFC's AUM crossed Rs 3 lakh crore for the first time on the back of a strong festive season.

The company booked 9.86 million new loans and witnessed highest-ever new customer addition of 3.85 million in Q3.

As of Dec. 31, the AUM mix of urban, rural, small and medium enterprises, commercial, mortgage portfolio stood at 45%, 12%, 18%, 16%, 9% respectively.

The company's capital adequacy ratio as of Dec. 31, stood at 23.87%, with tier-I capital was at 22.80%.

Bajaj Finance's total borrowings stood at Rs 2 lakh crore, with a mix of 47% of money market instruments, 24% of bank borrowings and 29% of deposits, as of Dec. 31.

Bajaj Housing Finance Ltd., which makes for 37% of Bajaj Finance's AUM reported a net profit of Rs 437 crore in Q3. The bottom line was up 31% from the previous year.

Its assets under management grew 31% to Rs 85,929 crore in the quarter under review. NII rose 17% in Q3 to Rs 645 crore. Gross NPA and net NPA stood at 0.25% and 0.10%, respectively, as compared with 0.24% and 0.09% in Q2.