The non-banking financial company (NBFC) reported 13.82% increase in consolidated net profit to Rs 3,911.98 crore on a 24% jump in total income to Rs 10,418 crore in Q1 FY25 as compared with Q1 FY24.
The consolidated results of Bajaj Finance include the results of its wholly owned subsidiaries, Bajaj Housing Finance (BHFL), Bajaj Financial Securities (BFinsec) and its associate company, Snapwork Technologies.The growth in consolidated profit was due to one time reversal of deferred tax liability of Rs 73 crore in Q1 FY24.
Operating expenses rose 21.61% to Rs 3,471 crore in the third quarter as compared with Rs 2,854 crore posted in the corresponding quarter last year.
Net interest income jumped 24.54% to Rs 8,365 crore for Q1 FY25 from Rs 6,717 crore in Q1 FY24. Operating expenses to net interest income for Q1 FY25 was 33.3% as against 34% in Q1 FY24.
Loan losses and provisions during the quarter amounted to Rs 1,685 crore (up 69.34% YoY).
Profit before tax in Q1 FY25 stood at Rs 5,265.35 crore, up 15.69% from Rs 4,551.21 crore posted in Q1 FY24.
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Number of new loans booked during the quarter grew by 10% to 10.97 million as against 9.94 million in Q1 FY24. The company resumed sanction and disbursal of loans under 'eCOM' and 'lnsta EMI Card' and issuance of EMI cards after the RBI removed the restrictions on these businesses on 2 May 2024.
Customer franchise stood at 88.11 million as of 30 June 2024 as compared to 72.98 million as of 30 June 2023, a growth of 21%. The company's customer franchise grew by 4.47 million in Q1 FY25.
The NBFCs consolidated deposits book jumped 26% YoY and stood at Rs 62,774 crore as of 30 June 2024.
Assets under management (AUM) grew by 31% Rs 354, 192 crore as of 30 June 2024 from Rs 270,097 crore as of 30 June 2023. AUM grew by 23,577 crore in Q1 FY25.
On the asset quality front, gross NPA and net NPA as of 30 June 2024 stood at 0.86% and 0.38% respectively, as against 0.87% and 0.31% as of 30 June 2023. The Company has provisioning coverage ratio of 56% on stage 3 assets as of 30 June 2024.
Capital adequacy ratio (including Tier-II capital) as of 30 June 2024 was 21.65%. The Tier-I capital was 20.73%.
The NBFC's annualized return on average assets (ROA) stood at 4.6% in Q1 FY25 as compared with 5.4% reported in Q1 FY24. Return on average equity (ROE) stood at 19.9% in the first quarter of FY25 as compared with 24.5% posted in in the first of FY24.
Bajaj Finance is engaged in lending and allied activities. It focuses on consumer lending, small and medium-sized enterprises (SME) lending, commercial lending, rural lending, fixed deposits and value-added services.
The scrip slipped 2.18% to end at Rs 6,732.20 on the BSE.
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