Bajaj Finance Q1 PAT up 4.17% yoy at Rs1,002cr but asset quality comes under stress

Bajaj Finance Ltd reported 1.41% growth yoy in total revenues for the Jun-21 quarter on consolidated basis at Rs6,741.91cr

Jul 21, 2021 08:07 IST India Infoline News Service

Bajaj Finance Ltd reported 1.41% growth yoy in total revenues for the Jun-21 quarter on consolidated basis at Rs6,741.91cr. On a sequential basis, the revenues were down -1.59% compared to Rs6,850.62cr in the Mar-21 quarter. The AUM of Bajaj Finance stood at Rs159,057cr while it booked 46.3 lakh new loans in the quarter. It also acquired 18.8 lakh new customers, taking its total customer tally beyond the 5 crore mark.

During the Jun-21 quarter, Bajaj Finance expanded its presence to 125 new locations taking its total footprint to 3,113 locations and over 114,000 distribution points. Customer accretion is broadly in line with the company’s guidance of adding around 70-80 lakh customers annually. During the quarter, the deposits book grew by 39% yoy with a retail / corporate mix in the deposit profile at 77:23.

Operating profits grew by just about 4.29% you while the operating profit was 25% lower sequentially. In Q1, the interest income reversal was 50% higher at Rs451cr. However, cost of funds were sequentially from 7.39% to 7.11%. However, the OPEX to NII widened from 27.9% to 30.6% on yoy basis. Collections also got impacted by the lockdown.

Net profits for the Jun-21 quarter were up 4.17% yoy at Rs1,002.44cr even as sequential profits were down -25.6% over Mar-21 quarter. Loan losses and provisions in the quarter were Rs1,750cr due to COVID 2.0 effect. Gross NPAs rose to 2.96%, up 117 bps sequentially; while net NPAs also rose to 1.46%, up 71 bps sequentially. Net margins at 14.87% were marginally higher yoy but sharply lower sequentially compared to 19.66% in March quarter.

Financial highlights for Jun-21 compared yoy and sequentially

Bajaj Finance
Rs in Crore Jun-21 Jun-20 YOY Mar-21 QOQ
Total Income (Rs cr) ₹ 6,741.91 ₹ 6,648.20 1.41% ₹ 6,850.62 -1.59%
Operating Profit (Rs cr) ₹ 1,365.86 ₹ 1,309.69 4.29% ₹ 1,822.59 -25.06%
Net Profit (Rs cr) ₹ 1,002.44 ₹ 962.32 4.17% ₹ 1,346.64 -25.56%
Diluted EPS (Rs) ₹ 16.54 ₹ 15.93 ₹ 22.23
OPM 20.26% 19.70% 26.60%
Net Margins 14.87% 14.47% 19.66%

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