Bajaj Finance Q4 Results LIVE Updates: Net profit rises 21% YoY to ₹3824 crore, ₹36 dividend declared

Bajaj Finance net profit rises 21% YoY to ₹3824 crore, Net interest income rises 28% YoY to ₹8,013 crore.

• As per company, the new loans booked during the quarter were lower by approximately 0.80 million on account of the restrictions placed by the RBI on Bajaj Finance, on sanction and disbursal of loans under 'eCOM' and 'lnsta EMI Card'.

• On 15 November 2023, Reserve Bank of India directed Bajaj Finance to stop sanction and disbursal of loans under its two lending products ‘eCOM’ and ‘Insta EMI Card’, with immediate effect due non-adherence of the company to the extant provisions of Digital lending guidelines of the central bank.

• Bajaj Finance Q4 net profit has beat the market estimates.

• The net profit of Bajaj Finance increased on the back of rising assets under management, net interest income and improvement in the asset quality.

The Board of Directors has recommended a dividend of ₹36 per equity share of face value of ₹2 (1800%) for FY24. In the previous year, NBFC gave a dividend of ₹30 per equity share.

• Number of new loans booked grew by 4% in Q4FY24 to 7.87 million as against 7.56 million in Q4FY23.

• Customer franchise stood at 83.64 million as of 31 March 2024 as compared to 69.14 million as of 31 March 2023, a growth of 21%.

• Profit after tax increased by 21% in Q4FY24 to ₹3,825 crore from ₹3,158 crore in Q4 FY23. Consolidated numbers include the businesses of the lender's subsidiaries, Bajaj Housing Finance and Bajaj Financial Securities.

• Gross NPA and Net NPA as of 31 March 2024 stood at 0.85% and 0.37% respectively, as against 0.94% and 0.34% as of 31 March 2023. The Company has a provisioning coverage ratio of 57% on stage 3 assets.

Bajaj Finance’s consolidated assets under management (AUM) stood at ₹330,615 crore as of 31 March 2024. AUM grew by 34% YoY compared to 247,379 crore in the same quarter of FY23.

According to an average of estimates shared by five brokerages, the lender’s net profit is seen rising by 22% year-on-year to ₹3,836 crore. The net interest income is expected rise by 40% YoY to ₹8,764 crore, as per the estimates.

Bajaj Finance will declare the results for the quarter ending March 31, as well as the entire fiscal year 2023-24, shortly. The results are keenly watched as Bajaj Finance is the country's largest non-banking finance company. Analysts have estimated the NBFC to log a 22% YoY growth in net profit.

The shares of Bajaj Finance settled 0.45% lower at ₹7,296 apiece on the NSE at the closing bell. The stock traded in the red for most of the session, barring a brief period in the last couple of hours.

• Assets under management (AUM) grew by 35% to ₹3.1 lakh crore as of December 2023 compared with the year-ago period.

• During Q2FY24, AUM recorded a growth of 33% year-on-year, reaching ₹2.9 lakh crore.

• AUM at the end of Q1FY23 stood at ₹2.7 lakh crore, up 32% from the same period a year ago.

• NII for Q3FY24 rose 29% year-on-year to ₹7,655 crore as the company increased rates across all portfolios by 20-30 basis points after the hike in risk weighting.

• In the September quarter, net interest income stood at ₹8,845 crore, up 26.3% on a year-on-year basis.

• For Q1, net interest income increased by 26% year-on-year to ₹8,398 crore.

• Bajaj Finance’s consolidated Q3FY24 profit stood at ₹3,638.95 crore, up 22% from the year-ago period.

• For Q2FY24, the NBFC reported a 27.8% year-on-year increase in net profit to ₹3,550.8 crore.

• In Q1 of FY 2023-24, Bajaj Finance had reported net profit of ₹3,437 crore, up 32.4% year-on-year.

A slide in net interest margin is expected due to the the rising cost of funds, analysts said. According to a CNBC TV-18 polls, the margin is expected to decline both year-on-year and quarter-on-quarter. Another set of estimates show that the margin is likely to decelerate by 47 basis points to 10%.

The NBFC, at its current stock price, has a market capitalisation value of ₹4.49 lakh crore. The Pune-headquartered company holds assets under management (AUM) worth around ₹2.7 lakh crore.

The shares of Bajaj Finance edged lower at the stock market ahead of the release of Q4 results. The scrip has been in the red since the opening bell. At 12:05 pm, it was down around 1.2% at ₹7,239 apiece.

In the December 2023 quarter, Bajaj Finance had reported a net profit of ₹3,639 crore, up 22% from the year-ago period. The net interest income had climbed by 29% year-on-year to ₹7,655 crore.

The NBFC's stock has risen by around 7% in the past one month, reflecting a significant surge. The year-to-date growth, however, has been flat at around 0.25%. The surge for the last one year period, however, has been sharp at 20.4%.

The net interest income or NII of Bajaj Finance is expected to come in at ₹8,764 crore, according to an average of estimates shared by five brokerages. This will be 40% higher as against the NII logged by the company in the January-March quarter of FY23.

The lender is expected to report a net profit of ₹3,836 crore in Q4 FY24, according to an average of estimates shared by five brokerages. This is 22% higher as compared to the fourth quarter of FY23.

The net interest margin (NIM) is expected to decline both quarter-on-quarter and year-on-year, according to a CNBC TV-18 poll of analysts. According to one of the brokerages, the NIM is likely to decline by 47 basis points to 10%.

The net interest margin is expected to decline both year-on-year and quarter-on-quarter

Shares of the NBFC opened in the red ahead of the Q4 results. The stock was trading at ₹7,278 at 9:30 am, down around 0.6% as against the previous day's close.

The lender’s net profit is seen rising by 22% year-on-year (YoY) to ₹3,836 crore, according to an average of estimates shared by five brokerages. The net interest income (NII) is likely to come in at ₹8,764 crore, up 40% as compared to the year-ago period.

The net interest margin (NIM), however, could slide in view of the rising cost of funds, one of the brokerages said. It anticipates a 47 basis points (bps) or 0.47% YoY contraction in NIM to 10% for the quarter ending March 2024.

Bajaj Finance Q4: Strong AUM

The company’s assets under management climbed by 34% YoY in the fourth quarter of FY24, as per the business update shared by the lender earlier this month. This takes the overall AUM to ₹3.3 lakh crore as of March 31, 2024.

The percentage-wise surge in AUM is higher than the company’s revised growth guidance of 29-31%.

Customer franchises during the Q4 period went up by 21% YoY, whereas new loans booked increased by 4% as compared to the January-March period of FY23.

Bajaj Finance shares

On April 24, Bajaj Finance’s shares closed at ₹7,329.2 apiece on the NSE, up nearly 1% as against the previous day’s close. In the past one month, the stock has rallied by around 7%. Year-to-date, the growth has been flat at 0.25%, whereas, the climb has been significant at 20.4% in the last one-year period.