Bajaj Finance Ltd is anticipated to unveil a 30% year-on-year (YoY) boost in net profit, mirroring a parallel increase in sales. Analysts suggest that net interest margin (NIM) may observe a 20-40 basis points sequential dip due to rising borrowing costs, although they foresee an enhancement in asset quality.
During the September quarter, Bajaj Finance exhibited a noteworthy 7.4% sequential growth in loans, a departure from the 6-9% quarter-on-quarter (QoQ) pattern in the preceding four quarters. The company further disclosed a substantial 33% YoY expansion in assets under management, with a robust 22% YoY surge in its customer base, chiefly driven by a 26% YoY uptick in new loans booked.
Deposits during the quarter exhibited a striking 40% YoY increase, with liquidity levels remaining ample, according to insights from Jefferies.
IIFL Securities is anticipating Bajaj Finance to declare a 28% YoY rise in profit, reaching Rs 3,550 crore, in conjunction with a 30% YoY ascent in Net Interest Income (NII) at Rs 7,200 crore. This assessment was made following Bajaj Finance’s impressive 32.9% YoY growth in assets under management, as disclosed in its pre-earnings release. The report emphasized the effectiveness of Bajaj Finance’s omni-presence strategy, which significantly boosted new customer acquisitions.
As the earnings announcement neared, the stock was trading at Rs 8,100, marking a 0.84% increase. Kotak Institutional Equities projects Bajaj Finance to reveal a 29% YoY profit upswing, amounting to Rs 3,588.30 crore, accompanied by a 28.9% YoY increment in NII at Rs 7,136.50 crore. Provisions for the quarter are estimated to surge by 33.5% YoY, reaching Rs 980.50 crore. Pre-provision profit is projected to increase by 29.9% YoY, reaching Rs 5,829.50 crore. The net interest margin is anticipated to register at 10.2%, marking a slight decrease from the 10.4% reported in June and the 10.5% in the corresponding quarter of the prior year.
InCred Equities foresees Bajaj Finance to report a notable 31.1% YoY boost in net profit, reaching Rs 3,644.30 crore, compared to Rs 2,780.70 crore in the same quarter of the previous year.