Ahead of Bajaj Finance Q4 results today, a look at how NBFC performed in last three quarters of FY24

Bajaj Finance Ltd share dropped nearly 3% on April 25 (Thursday) ahead of the earnings announcement for the quarter ended March 2024 (Q4FY24) later in the day.

The Bajaj Finance stock fell as much as 2.8% on Thursday to hit an intraday low of ₹7,125.1 apiece on the National Stock Exchange of India (NSE). However, the stock recovered some early losses to trade flat at ₹7,332 apiece at 2:15 pm.

Market experts are expecting a jump in profit and net interest income (NII) for Bajaj Finance in Q4FY24 compared with the year-ago period. The company’s margins may contract due to higher cost of funds after the Reserve Bank of India (RBI) increased the risk weight on consumer credit exposure of non-banking financial companies (NBFCs) in November 2023.

As markets await Bajaj Finance’s Q4 earnings, let’s take a look at how the lender fared during the past three quarters of FY 2023-24.

Net profit

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.

Also read: Bajaj Finance Q4 Results LIVE Updates

Net interest income

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.

Assets under management

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.

Asset quality

Gross NPA (non-performing asset) and net NPA stood at 0.95% and 0.37%, respectively, in Q1FY24 as against 1.14% and 0.41% in the corresponding period last fiscal.

In Q2, gross NPA and net NPA dropped to 0.91% and 0.31%, respectively, compared to 1.17% and 0.44% a year ago.

At the end of the June quarter, gross NPA ratio was 0.87% compared with 1.25% a year ago. Meanwhile, net NPA ratio was 0.31% compared with 0.51% a year earlier.