Bajaj Finance Share Q3 Results

resr 5paisa Research Team 13th December 2022 - 08:48 am
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Bajaj Finance reported stellar numbers for the third quarter ended December 2021 as a combination of robust interest income and flat interest costs resulted in sharply higher net interest income. This resulted in a sharp growth in operating profits and in net profits despite the overhang of Omicron and the risk of retail consumer credit demand getting impacted.
 

Bajaj Finance Quarterly Numbers
 

Rs in Crore

Dec-21

Dec-20

YOY

Sep-21

QOQ

Total Income (Rs cr)

₹ 8,535.06

₹ 6,656.13

28.23%

₹ 7,731.36

10.40%

Operating Profit (Rs cr)

₹ 2,867.98

₹ 1,554.51

84.49%

₹ 2,004.45

43.08%

Net Profit (Rs cr)

₹ 2,125.29

₹ 1,145.98

85.46%

₹ 1,480.99

43.50%

Diluted EPS (Rs)

₹ 35.02

₹ 18.94

 

₹ 24.58

 

OPM

33.60%

23.35%

 

25.93%

 

Net Margins

24.90%

17.22%

 

19.16%

 

 

For the third quarter ending Dec-21, India’s most valuable consumer finance company Bajaj Finance, reported 28.2% growth in consolidated total revenues at Rs.8,535 crore. During Dec-21 quarter, Bajaj Finance saw core AUM up by Rs.14,700 crore on a quarterly basis. The number of new loan accounts added in the quarter stood at 7.44 million compared to 6.04 million in the corresponding third quarter December 2020.

Currently, Bajaj Finance has a total base of registered and revenue customers to the tune of 5.54 crore. That is nearly 20% higher compared to the previous year. Even the overall assets under management or the AUM of Bajaj Finance was up by 26% YoY at Rs.181,250 cr. This makes Bajaj Finance the to company by retail consumer finance AUM in India.

Operating profits for the Dec-21 quarter were sharply up by 84.5% YoY. It got a boost from higher a 40% surge in net interest income (NII at Rs.6,000 crore in the Dec-21 quarter. Of course, this also resulted in the operating expense ratio increasing marginally from 32.3% to 34.7%, but was more than compensated by the higher revenue boost.

The profits also gained from lower impairment costs or what is normally called loan loss provisions for the quarter. These loan loss provisions fell by 22.2% on a YoY basis to Rs.1,051 crore in the Dec-21 quarter. Operating margins increased sharply from 23.35% in Dec-20 quarter to 33.60% in the Dec-21 quarter. Operating margins are higher sequentially too.

Net Profits for the Dec-21 quarter was up 85.5% YoY at Rs.2,125 crore. The good news is that the gross NPAs at the end of Dec-21 stood at 1.73% as compared to 2.45% a year ago. Even the net NPAs at 0.78% were 32 basis points lower than last year. The provision coverage ratio or stands at 56% on stage-3 assets. PAT margins improved sharply from 17.22% in Dec-20 quarter to 24.90% in the Dec-21 quarter. Overall, Bajaj Finance managed sterling numbers in a tough quarter.

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