Bajaj Finance rose 3.18% to Rs 4347 after the NBFC major reported robust Q3 earnings during market hours today, 29 January 2020.
On consolidated basis, net profit jumped 52% to Rs 1614 crore in Q3 December 2019 as against Rs 1060 crore reported in Q3 December 2018. The company reported that this is the highest ever quarterly consolidated net profit ever posted by the NBFC.Consolidated revenue from operations stood at Rs 7011.05 in Q3 2019 as compared to Rs 4985.39 crore reported in Q3 2018, registering a rise of 40.63%. Net interest income for Q3FY20 was up by 42% to Rs 4,537 crore from Rs 3,206 crore in Q3FY19.
Profit before tax (PBT) for Q3 December 2019 (Q3 FY20) stood at Rs 2,170.07 crore, up by 32.67% against Rs 1,635.67 crore in Q3 December 2018 (Q3 FY19). Tax expenses fell 3.5% to Rs 555.96 crore in Q3 FY20 from Rs 576.11 crore reported in Q3 FY19.
NBFC major reported a 35% rise in consolidated Asset under Management (AUM) to Rs 1,45,092 crore as of 31 December 2019 from Rs 1,07,507 crore posted on 31 December 2018.
"Consumer B2B sales finance had a slow quarter as the company witnessed significant slowdown in consumption categories. This was in addition to our cautious stance in digital products financing," the company said.
Loan losses and provisions (expected credit loss) for Q3FY20 soared 84.26% to Rs 831 crore as against Rs 451 crore in Q3FY19. During the quarter, the company has made an accelerated provision of Rs 85 crore in its loan against securities portfolio.
Gross NPA and Net NPA, recognized as per RBI prudential norms stood at 1.61% and 0.70% respectively in Q3 December 2019. The provisioning coverage ratio came in at 57%.
The company said that Deepak Bagati will replace Fakhari Sarjan as chief risk officer of the company from 29 January 2020.
The stock hit an intraday high of Rs 4,347 which is also a record high for the counter. On BSE, 97,000 shares were traded so far as compared to 2-weeks daily average of 47,000 shares.
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.
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