Bajaj Finance Q1 Results: Profit Rises 25.5% On Higher Core Income

Consumer financier Bajaj Finance Ltd. saw its net profit rise in the April-June quarter on account of higher core income from loans.

The lender's standalone net profit surged 25.5% year-on-year to Rs 2,959 crore in the first quarter of FY24. Bajaj Finance's consolidated net profit also rose by 32% to Rs 3,437 crore in Q1 FY24.

Analysts polled by Bloomberg estimated a quarterly net profit of Rs 3,131 crore for the lender.

While the standalone consumer lending business is the mainstay for Bajaj Finance, it also has a housing finance subsidiary whose results are reflected in the consolidated numbers.

Bajaj Finance's standalone assets under management grew by 33% year-on-year in Q1 FY24 and stood at Rs 1.99 lakh crore. Bajaj Housing Finance's assets under management also rose by 29% year-on-year and stood at Rs 74,124 crore.

Its net interest income, on a consolidated basis, stood at Rs 8,398 crore, up 26.4% year-on-year from Rs 6,640 crore over the same period last year.

Bajaj Finance's asset quality saw an improvement, with the lender's standalone gross non-performing asset ratio improving 7 basis points to 0.87%. Similarly, the firm's net non-performing assets ratio also improved from 0.34% to 0.31%.

Consolidated assets under management for Bajaj Finance rose 32% from the previous year to Rs 2.70 lakh crore. The lender also saw its consolidated provisions for loan losses rise from Rs 755 crore in Q1 FY23 to Rs 995 crore, denoting a 31.7% year-on-year increase.

Shares of Bajaj Finance were trading 2.25% lower at Rs 7,435.10 apiece, as of 3 p.m. on Wednesday.