Bajaj Finance

28 Jul 2022 , 08:27 AM

Bajaj Finance has continued to post robust 159% growth in the net profit to Rs 2596.25 for the quarter ended June 2022 (Q1FY2023). Income from operations on a consolidated basis increased 33% to Rs 7919.67 crore, while other income jumped 73% to Rs 1363.04 crore. Total income moved up 38% to Rs 9282.71 crore in the quarter ended June 2022. Interest expenses rose at higher pace of 17% to Rs 2645.13 crore. NII of the company galloped 43% to Rs 5274.54 crore in Q1FY2023. Operating expenses increased 77% to Rs 2268.69 crore, allowing the operating profit to jump 36% to Rs 4368.89 crore. Depreciation moved up 25% to Rs 111.41 crore, while loan loss provisions dipped 57% to Rs 754.72 crore in Q1FY2023. PBT increased 156% to Rs 3502.76 crore. Effective tax rate eased to 25.9% in Q1FY2023 from 26.6% in Q4FY2021. Net Profit of the company moved up 159% to Rs 2596.25 crore in the quarter ended June 2022. Book value of the company stood at Rs 767.2 per share at end June 2022, while adjusted book value (net of NNPA) stood at Rs 750.3 per share at end June 2022. Business highlights Assets under management (AUM) grew by 28% to Rs 204018 crore end June 2022 from Rs 159057 crore end June 2021. Core AUM growth in Q1FY23 was Rs 11931 crore. Net interest income for Q1FY23 increased 48% to Rs 6638 crore from Rs 4489 crore in Q1FY22. Total operating expenses to net interest income for Q1FY23 was 35.9% as against 30.6% in Q1FY22. Loan losses and provisions for Q1FY23 was Rs 755 crore as against Rs 1750 crore in Q1FY22.The Company holds a management and macro-economic overlay of Rs  1000 crore end June 2022. New loans booked during Q1FY23 grew by 60% to 7.42 million as against 4.63 million in Q1FY22. Customer franchise stood at 60.30 million end June 2022 as compared to 50.45 million end June 2021, a growth of 20%. The Company recorded highest ever quarterly increase in its customer franchise of 2.73 million in Q1FY23. Gross NPA stood at 1.25% and Net NPA and at 0.51% end June 2022, as against 2.96% and 1.46% end June 2021. The Company has provisioning coverage ratio of 60% on stage 3 assets and 130 bps on stage 1 and 2 assets end June 2022. Capital adequacy ratio (including Tier- II capital) end June 2022 was 26.16%. The Tier-I capital was 23.84%. Bajaj Finance Assets under management grew by 25% to Rs 149981 crore end June 2022 from Rs 119567 crore end June 2021. Net interest income increased 48% to Rs 6140 crore for Q1FY23 from Rs 4153 crore in Q1FY22. Loan losses and provisions for Q1FY23 was Rs 748 crore as against Rs 1724 crore in Q1FY22. The Company holds a management and macro-economic overlay of Rs 780 crore end June 2022. Profit after tax increased by 179% to Rs 2356 crore for Q1FY23 from Rs 843 crore in Q1FY22. Bajaj Housing Finance Assets under management grew by 40% to Rs 57.425 crore end June 2022 from Rs 40941 crore end June 2021. Net interest Income increased 77% to Rs 594 crore from Rs 335 crore in Q1FY22. Loan losses and provisions for Q1FY23 was Rs 7 crore as against Rs 26 crore in Q1FY22. BHFL holds a management and macro-economic overlay of Rs 220 crore end June 2022. Profit after tax for Q1FY23 increased by 96% to Rs 316 crore from Rs 161 crore in Q1FY22 Gross NPA stood at 0.27% and Net NPA at 0.11% end June 2022, as against 0.28% and 0.18% end June 2021. BHFL has provisioning coverage ratio of 58% on stage 3 assets and 77 bps on stage 1 and 2 assets end June 2022. Capital adequacy ratio (including Tier- II capital) end June 2022 was 24.57%. Bajaj Financial Securities (BFinsec) Customers acquired during Q1FY23 were approximately 36,500. BFinsec`s customer franchise end June 2022 was over 367500.Margin trade financing (MTF) book stood at Rs 741 crore end June 2022 as against Rs 200 crore end June 2021. Total Income for Q1FY23 was Rs 38 crore as against Rs 15 crore for Q1FY22. BFinsec generated profit after tax of Rs 1 crore for Q1FY23 against loss of Rs 3 crore for Q1FY22. Financial Performance FY2022: The company has reported 17%, on yoy basis, increase in its income from operations to Rs 27269.76 crore for the year ended March 2022 (FY2022), while other income of the company surged 29% to Rs 4370.65 crore. Total income advanced 19% to Rs 31640.41 crore. Interest expenses increased 4% to Rs 9748.24 crore. NII of the company increased 26% to Rs 17521.52 crore. Operating expenses moved up 45% to Rs 7200.42 crore, allowing the operating profits to increase 20% to Rs 14691.75 crore for FY2022. Depreciation increased 18% to Rs 384.57 crore, while provisions declined 20% to Rs 4803.40 crore. PBT moved up 59% to Rs 9503.78 crore. Effective tax rate eased to 26.0% in FY2022 from 26.2% in FY2021. PAT of the company was up 59% to Rs 7028.23 crore in FY2022.

Bajaj Finance: Consolidated Results
Particulars	2206 (3)	2106 (3)	Var %	2203 (12)	2103 (12)	Var %
Income from operations	7919.67	5954.22	33	27269.76	23303.38	17
Other Income	1363.04	788.79	73	4370.65	3379.67	29
Total Income	9282.71	6743.01	38	31640.41	26683.05	19
Interest Expended	2645.13	2253.55	17	9748.24	9414.00	4
Operating Expense	2268.69	1284.26	77	7200.42	4982.94	45
Operating Profits	4368.89	3205.20	36	14691.75	12286.11	20
Depreciation / Amortization	111.41	89.02	25	384.57	325.27	18
Provisions and Write-offs	754.72	1750.32	-57	4803.40	5968.58	-20
PBT	3502.76	1365.86	156	9503.78	5992.26	59
Tax Expense	906.51	363.42	149	2475.55	1572.44	57
PAT	2596.25	1002.44	159	7028.23	4419.82	59
EPS	172.0	66.4		116.4	73.2
* Annualized on current equity of Rs 120.73 crore. Face Value: Rs 2, Figures in Rs crore
Source: Capitaline Corporate Database

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