Bajaj Finance

AUM growth slow at 4%, but asset quality improves

Apr 29, 2021 02:04 IST capital market

Bajaj Finance has continued to post robust 42% growth in the net profit to Rs 1346.64 for the quarter ended March 2021 (Q4FY2021). Income from operations on a consolidated basis declined 4% to Rs 6034.31 crore, while other income dipped 12% to Rs 820.63 crore. Total income eased 5% to Rs 6854.94 crore in the quarter ended March 2021. Interest expenses dipped 14% to Rs 2195.55 crore. NII of the company rose 2% to Rs 3838.76 crore in Q4FY2021.

Operating expenses increased 11% to Rs 1516.14 crore, causing 2% decline in the operating profit to Rs 3143.25 crore. Depreciation moved up 5% to Rs 89.89 crore, while loan loss provisions dipped 37% to Rs 1230.77 crore in Q4FY2021.

PBT increased 43% to Rs 1822.59 crore. Effective tax rate rose to 26.1% in Q4FY2021 from 25.8% in Q4FY2020. Net Profit of the company moved up 42% to Rs 1346.64 crore in the quarter ended March 2021.

Book value of the company stood at Rs 613.7 per share at end March 2021, while adjusted book value (net of net NPA) stood at Rs 594.8 per share at end March 2021.

Business highlights

New loans booked during Q4FY21 were 5.47 million as against 6.03 million in Q4FY20. Customer franchise as of 31 March 2021 stood at 48.57 million as against 42.60 million as of 31 March 2020. The Company acquired 2.26 million new customers in Q4FY21 as compared to 1.85 million in Q4FY20. New loans booked during FY21 were 16.88 million as against 27.44 million in FY20. The Company acquired 6.20 million new customers in FY21.

Interest income reversal for the quarter was Rs 298 crore as compared to Rs 122 crore in Q4FY20. Interest income reversal for the year was Rs 1,270 crore as compared to Rs 329 crore in FY20.

Gross NPA stood at 1.79% and Net NPA at 0.75% end March 2021, as against 1.61% and 0.65% end March 2020. The Company has provisioning coverage ratio of 58% on stage 3 assets and 181 bps on stage 1 and 2 assets as of 31 March 2021.

The company has done accelerated write offs of Rs 1530 crore of principal outstanding in Q4FY2021 and Rs 3500 crore in FY2021 on account of COVID-19 related stress and advancement of its write off policy. The Company holds a management overlay and macro provision of Rs 840 crore as of 31 March 2021.

Assets under management (AUM) grew by 4% to Rs 152947 crore end March 2021 from Rs 147153 crore end March 2020.

Liquidity surplus was Rs 16485 crore end March 2021 as against Rs 15842 crore end March 2020. The cost of liquidity surplus for FY21 was Rs 684 crore as compared to Rs 271 crore in FY20.

Capital adequacy ratio (including Tier-II capital) as of 31 March 2021 was 28.34%. The Tier-I capital was 25.10%.

Bajaj Housing Finance

Assets under management (AUM) grew by 19% to Rs 38871 crore end March 2021 from Rs 32705 end March 2020.

Net Interest Income increased 31% to Rs 369 crore for Q4FY21 from Q4FY21 Rs 283 crore in Q4FY20. Loan losses and provisions for Q4FY21 was Rs 30 crore as against Rs 89 crore in Q4FY20. Profit after tax for Q4FY21 increased by 97% to Rs 179 crore from Rs 91 crore in Q4FY20.

Net Interest Income increased 15% to Rs 1189 crore for FY21 from Rs 1030 crore in FY20. Loan losses and provisions doubled to Rs 247 crore for FY21 as against Rs 124 crore in FY20. Profit after tax for FY21 increased 8% to Rs 453 crore to Rs 421 crore in FY20.

Gross NPA and Net NPA as of 31 March 2021 stood at 0.35% and 0.22% respectively, as against 0.08% and 0.05% as of 31 March 2020. The Company has provisioning coverage ratio of 38% on stage 3 assets and 91 bps on stage 1 and 2 assets as of 31 March 2021.

Capital adequacy ratio (including Tier-II capital) as of 31 March 2021 was 21 .33%

Bajaj Financial Securities (BFinsec)

Total Income for Q4FY21 was Rs 17.31 crore and FY21 was Rs 36.34 crore. BFinsec made a net profit of Rs 4.52 crore and Rs 5.55 crore for Q4FY21 and FY21 respectively.

Financial Performance FY2021:

The company has reported 1%, on yoy basis, increase in its income from operations to Rs 23303.38 crore for the year ended March 2021 (FY2021), while other income of the company declined 1% to Rs 3379.67 crore. Total income rose 1% to Rs 26683.05 crore. Interest expenses fell 1% to Rs 9414.00 crore. NII of the company increased 3% to Rs 13889.38 crore.

Operating expenses declined 7% to Rs 4982.94 crore, allowing the operating profits to increase 6% to Rs 12286.11 crore for FY2021. Depreciation increased 10% to Rs 325.27 crore, while provisions galloped 52% to Rs 5968.58 crore. PBT declined 18% to Rs 5992.26 crore. Effective tax rate eased to 26.2% in FY2021 from 28.1% in FY2020. PAT of the company declined 16% to Rs 4419.82 crore in FY2021.

Bajaj Finance: Consolidated Results

 

Particulars 2103 (3) 2003 (3) Var % 2103 (12) 2003 (12) Var %
Income from operations 6034.31 6302.26 -4 23303.38 22970.39 1
Other Income 820.63 928.57 -12 3379.67 3415.24 -1
Total Income 6854.94 7230.83 -5 26683.05 26385.63 1
Interest Expended 2195.55 2547.40 -14 9414.00 9473.21 -1
Operating Expense 1516.14 1366.16 11 4982.94 5366.19 -7
Operating Profits 3143.25 3317.27 -5 12286.11 11546.23 6
Depreciation / Amortization 89.89 85.31 5 325.27 294.63 10
Provisions and Write-offs 1230.77 1953.76 -37 5968.58 3929.48 52
PBT 1822.59 1278.20 43 5992.26 7322.12 -18
Tax Expense 475.95 330.10 44 1572.44 2058.37 -24
PAT 1346.64 948.10 42 4419.82 5263.75 -16
EPS 89.5 63.0 73.5 87.5
* Annualized on current equity of Rs 120.32 crore. Face Value: Rs 2, Figures in Rs crore
Source: Capitaline Corporate Database

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