Bajaj Finance Q2 preview: PAT may jump 22% QoQ; rise in cost of funds may impact NIM

ICICI Direct expects Bajaj Finance to report a net profit at Rs 1,462 crore, up 58.3 percent year-on-year, while KR Choksey expects net profit at Rs 1,640 crore, up 77.6 percent year-on-year.

October 21, 2019 / 11:25 AM IST
10| Bajaj Finance Limited : Rs 2.87 trillion

10| Bajaj Finance Limited : Rs 2.87 trillion

 
 
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Bajaj Finance, a part of Bajaj Holdings & Investments, is scheduled to announce its September quarter earnings on October 22. The stock is already trading at 52-week high in anticipation of the results.

Research and broking firm KR Choksey expects Bajaj Finance to report a net profit of Rs. 1,640 crore, up 77.6 percent year-on-year (YoY) and up 37.2 percent quarter-on-quarter (QoQ). The Net Interest Income (NII) is expected to increase by 42.8 percent YoY and 5.5 percent QoQ to Rs 3,897 crore. Pre-provision profit (PPP) is likely to rise by 45 percent YOY (up 37 percent QoQ to Rs 2,536 crore.

Another research firm, ICICI Direct, expects Bajaj Finance to report a net profit of Rs 1,462 crore, up 58.3 percent year-on-year and up 22.3 percent QoQ.

The Net Interest Income (NII), according to ICICI Direct, is expected to increase by 46.8 percent YoY and 7 percent QoQ to Rs 3,946 crore. Pre Provision Profit (PPP) is likely to rise by 47.8% YoY and 7.6 percent QoQ to Rs. 2,584.8 crore.

The company’s net interest margin movement will be watched closely due to a rise in the cost of funds.

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NII is seen at Rs 3,474.1 crore against Rs 2,729 crore, up 27.3 percent (down 6 percent QoQ), while net profit is seen at Rs 1,338.5 crore against Rs 923.5 crore, up 44.9 percent (up 12 percent QoQ), according to a Poll by CNBC-TV18.

Bajaj Finance's Q1FY20 earnings were impacted by elevated provisions and rising concerns on products.
Moneycontrol News
first published: Oct 21, 2019 11:25 am

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