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Bajaj Finance Q1 result | Profit zooms 159% YoY, beats estimates – Moneycontrol

Shadow banking major Bajaj Finance on July 27 said its consolidated net profit for the quarter ended June was at Rs 2,596.25 crore, its highest ever, up 158.99 percent from Rs 1,002.44 in the same quarter of the previous year. 

The number was higher than a CNBC- TV18 analysts’ poll estimate of Rs 2435.8 crore. 

The company said its net interest income (NII) for the quarter increased by 48 percent to Rs 6,638 crore from Rs 4.489 crore in the year-ago quarter.

New loans booked during the quarter grew by 60 percent to 74.2 lakh as against 46.3 lakh in Q1FY22. Customer franchise stood at 6.03 crore, registering a growth of 20 percent. The company recorded its highest ever quarterly increase in its customer franchise of 27.3 lakh in Q1FY23.

The company’s assets under management (AUM) crossed a milestone of Rs 2,00,000 crore in the quarter and stood at Rs 2,04,018 crore as of June 30, 2022, growing by 28 percent.

Loan losses and provisions for Q1FY23 were at Rs 755 crore as against Rs 1,750 crore in Q1FY22. The company holds a management and macro-economic overlay of Rs 1,000 crore, Bajaj Finance said. 

Gross non-performing assets (NPA) and Net NPA stood at 1.25 percent and 0.51 percent, respectively, as against 2.96 percent and 1.46 percent in the year-ago period. The company said it has a provisioning coverage ratio of 60 percent on stage 3 assets and 130 basis points on stage 1 and 2 assets.

The capital adequacy ratio (including Tier-II capital) as of June 30, 2022 was 26.16 percent. The Tier-I capital was 23.84 percent. 

On a standalone basis, the company’s net profit increased 179 percent, while NII increased 48 percent. Among subsidiaries, Bajaj Housing Finance recorded a 96 percent growth in net profits and Bajaj Financial Securities reported a profit after tax of Rs 1 crore against a loss of Rs 3 crore in Q1FY22.

Following the earnings report, shares of Bajaj Finance closed 2.38 percent higher at Rs 6408.90.