Bajaj Finance tanks over 2% after Q1 net profit, NII miss estimates

Bajaj Finance shares fell 2.5% to ₹6,560 on July 24 after the company reported a 14% year-over-year increase in net profit and a 25% rise in net interest income for the quarter ended June 2024, falling short of market expectations. Analysts had forecasted a Q1 FY25 net profit of ₹4,020 crore, but the actual figure was lower at ₹3,912 crore. Similarly, NII was expected to be ₹9,042 crore, but it was reported at ₹8,365 crore.

Bajaj Finance reported a 10% growth in new loans during the quarter, reaching 1.1 crore bookings. Assets under management expanded by 31% YoY to ₹3.5 lakh crore at the end of the quarter. The deposit book also saw a 26% YoY increase to ₹62,750 crore for the June quarter. As of June 30, 2024, the non-bank lender's gross non-performing assets stood at 1.06%, and net non-performing assets were at 0.47%, compared to 1.09% and 0.39%, respectively, as of June 30, 2023.

The portfolio of loans for two and three-wheeler finance increased by 34% to ₹19,689 crore. It recorded a massive 157% increase in its portfolio of car loans to ₹8,710 crore.

Bajaj Finance has also resumed issuing EMI cards, disbursing loans, and sanctioning loans under 'eCOM' and 'Insta EMI Card' after the central bank lifted restrictions in May.

In its investor presentation, the company further informed that its subsidiary, Bajaj Housing Finance (BHFL), filed a draft red herring prospectus (DRHP) with SEBI for an IPO on June 8, 2024, and is awaiting approval.

Bajaj Finance stock has fallen 7.5% last month and over 13% last year. Meanwhile, the Nifty 50 index benchmark has gained 3.9% in the previous month. The current market price of ₹6575.55 per share, the company’s market capitalisation stands at ₹4.06 lakh crore. The stock touched a 52-week low of ₹6,190 on March 6, 2024, and a 52-week high of ₹8,190 on October 10, 2023. The stock’s price-to-equity ratio is 32.96 times and has a return of equity of 17.56%, as per the data available on BSE.