iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Q2FY24 Preview: Bajaj Finance: NII seen at Rs. 17 billion, PAT at Rs. 4 billion

16 Oct 2023 , 10:44 AM

Result date: October 17, 2023

Recommendation: Buy

Target price: Rs. 9,200

Bajaj Finance has reported highest ever sequential growth in assets under management (AUM) of 7.5% (up 33% over the year-ago quarter) in a seasonally weak quarter along with strong new customer acquisition (3.6 million – second highest in its history). 

Margin compression (10 basis points sequentially) due to higher cost of funds is expected to result in slightly slower NII growth of 30% YoY (up 7% sequentially). Analysts at IIFL Capital Services expect credit costs to inch up to 165 basis points (up 12 basis points sequentially) partially offset by lower opex (C/I: -15 basis points sequentially) as benefits of operating leverage play out. 

Adjusted for tax rate normalization, Bajaj Finance should deliver earnings growth of 27% over the year-ago quarter and 5% sequentially. The company could report ROA (% of AUM) of 5.1%.

The company could post 22% sequential growth in Profit After Tax (PAT) while this metric could decline by 15% over the year-ago quarter.

Important management insights to watch out for:

  • Demand trends across key segments
  • Outlook on margins, asset quality
Rs. Billion September 2023 estimates

YoY change

QoQ change

NII (Ex-assignment income)

17.1

13%

5%

Net operating income

17.5

14%

5%

PPOP

10.4

21%

5%

Profit After Tax 

4.3

(15)%

22%

Source: IIFL Research

Related Tags

  • Bajaj Finance
  • Bajaj Finance Q2
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.