Q4FY23 Preview: Bajaj Finance: NII seen at Rs 6,574 crore, PAT at Rs 3,103 crore

25 Apr 2023 , 09:53 AM

Result date: 26^th April, 2023

Recommendation: Add

Target price: Rs 6,550

(Source: IIFL Research)

Bajaj Finance is expected to post ~29% growth in its Net Interest Income (NII) as compared to the year-ago quarter. This will be on the back of healthy credit demand across its key segments.

The company could witness some margin pressure due to rising cost of funds, even as cost to income ratio is likely to be in a tight band of 34-35%.

Bajaj Finance’s asset quality is likely to be stable with an upward bias amid improving collections. Credit costs could remain flat on a sequential basis.

Profit After Tax or PAT could grow by 28% over the year-ago quarter.

Important management insights to watch out for:

• Commentary on trade-off between margins and growth
• Progress on the execution of Long Range strategy

Rs Crore	March 2023 estimates	YoY change	QoQ change
Net Interest Income (NII)	6,574	28.7%	4.4%
Operating Profit	5,099	28.5%	5.1%
Profit After Tax	3,103	28.1%	4.5%

Source: Brokerage estimates