Bajaj Finance Q2 net profit rises 13% to Rs 4,000 crore, misses estimates

Bajaj Finance Q2 results: Net profit rises 13% to Rs 4,000 cr

Bajaj Finance on October 22 reported 13% increase in consolidated net profit at Rs 4,000 crore for the quarter ended September 30, 2024. It reported net profit of Rs 3,551 crore in the year-ago period.

The non-banking financial company missed estimates as a Moneycontrol poll of 6 brokerages had pegged 33% jump in net profit at Rs 4,464 crore.

Consolidated numbers include the non-banking financial company's subsidiaries, Bajaj Housing Finance and Bajaj Financial Securities.

On October 22, the NBFC's shares fell 2% to Rs 6,645.75 apiece.

Consolidated assets under management rose 29% to Rs 3.73 lakh crore as of September 30, 2024 as compared to Rs 2.9 lakh crore in the year-ago period, said Bajaj Finance in a stock exchange filing. AUM grew by Rs 19,732 crore in Q2FY25, said Bajaj Finance.

"Net interest income increased by 23% in Q2FY25 to Rs 8,838 crore from Rs 7,196 crore in Q2FY24. Net total income increased by 24% in Q2FY25 to Rs 10,946 crore from Rs 8,847 crore in Q2FY24. Customer franchise stood at 92.09 million as of September 30, 2024 as compared to 76.56 million as of September 2023, a growth of 20%. The customer franchise grew by 3.98 million in Q2FY25," said Bajaj Finance in a statement.

The company's asset quality was weak during the September quarter on an annual basis.

Gross NPA and Net NPA, as of September 30, 2024 stood at 1.06% and 0.46% respectively , as against 0.91% and 0.31% as of September 30, 2023. Capital adequacy ratio (CRAR) (including Tier-II capital) as of 30 September 2024 was 21.69%. The Tier-I capital was 20.90%.

Loan losses and provisions for Q2FY25 was Rs 1,909 crore as against Rs 1,077 crore in Q2FY24, it said, a rise of 77%.

Bajaj Finance's number of new loans booked grew by 14% in Q2FY25 to 9.69 million as against 8.53 million in Q2FY24.

The NBFC has been grappling with elevated losses in the last few quarters, especially in the personal loan segment in rural regions.

Profit after tax increased by 21% in Q2FY25 to Rs 546 crore from Rs 451 crore in Q2FY24.

Assets under management grew by 26% to Rs 1.03 lakh crore as of September 30, 2024 from Rs 81,215 crore as of September 30, 2023.

Net interest income increased by 13% in Q2FY25 to Rs 713 crore from Rs 632 crore in Q2FY24, as per press release.

Gross NPA and Net NPA as of September 30, 2024 stood at 0.29% and 0.12% respectively, as against 0.24% and 0.09% as of September 30, 2023. Bajaj Housing Finance has provisioning coverage ratio of 58% on stage 3 assets.

Capital adequacy ratio (CRAR) (including Tier-II capital) as of September 30, 2024 was 28.98%.

Profit after tax of Rs 37 crore in Q2FY25 against Rs 13 crore in Q2 FY24. Net total income in Q2FY25 was Rs 121 crore as against Rs 68 crore in Q2FY24.

Net interest income in Q2FY25 was Rs 64 crore as against Rs 27 crore in Q2 FY24.

Margin trade financing (MTF) book stood at Rs 5,430 crore as of September 30, 2024 as against Rs 2,056 crore as of September 30, 2023.

Bajaj Financial Securities acquired approximately 77,000 customers in Q2FY25. Overall customer franchise stood at approximately 833,000 as of September 30, 2024.