Bajaj Housing Finance reported a 21 percent year-on-year (YoY) rise in Q2 FY25 net profit, reaching Rs 546 crore, up from Rs 451 crore a year ago. This marks the lending company’s first earnings report post its recently-concluded IPO, which raised Rs 6,560 crore in September 2024, oversubscribed 64 times and aggregating Rs 3.24 lakh crore.
The non-banking finance company’s (NBFC) net interest income for the July-September quarter grew by 13 percent YoY to Rs 713 crore, it said in a stock exchange filing. Assets under management (AUM) surged by 26 percent, reaching Rs 1.03 lakh crore as of 30 September 2024, compared to Rs 81,215 crore in the same period last year.
However, the net profit margin slightly declined to 22.64 percent from 23.6 percent a year earlier. Similarly, the company’s gross non-performing assets (NPA) rose to 0.29 percent from 0.24 percent, while net NPA increased to 0.12 percent from 0.09 percent. The provision coverage ratio (PCR) stood at 57.87 percent, down from 60.79 percent a year ago.
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Bajaj Housing Finance’s capital adequacy ratio saw a significant improvement, rising to 28.98 percent from 22.64 percent last year, indicating strong capital reserves post-IPO. Despite these gains, annualised return on assets slipped to 2.5 percent from 2.6 percent, and annualised return on equity dropped to 13 percent from 16.1 percent.
Bajaj Housing Finance stock’s post-IPO performance in September 2024 took the company’s market capitalisation to as high as Rs 1.4 lakh crore. The company’s stock surged 136 percent on its debut, doubling the investors’ money, and continued to rise after listing. With the Reserve Bank of India’s mandate for listing upper-layer NBFCs, more finance firms are expected to follow Bajaj Housing Finance’s lead.
A unit of Bajaj Finance, Bajaj Housing Finance now stands as the most valuable housing finance firm in India. The parent company Bajaj Finance is due to report its fiscal second quarter earnings on October 22.
Bajaj Housing Finance share price fell nearly 2 percent on October 21 to end at Rs 136.8 on NSE, ahead of the results announcement. The stock has pared the post-listing gains, and has fallen from its all-time high of Rs 188.5, with its market capitalisation standing at Rs 1.14 lakh crore.
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