Bajaj Finance stock gains ahead of Q3 earnings, expect a strong set of numbers in the books

18 Jan 2022 , 11:27 AM

Bajaj Finance stock trades higher ahead of its December 2021 (Q3FY22) quarterly earnings on Tuesday. The NBFC is expected to report a strong set of numbers in Q3.

In Q3FY22, Bajaj Finance is expected to register strong financial books with double-digit growth in top-line and bottom-line front on the back of lower incremental provisions, easing in asset quality pressure, contraction in credit costs and rising in new loans. Also, a stellar festive season, pent up demand, low-interest rates and normal monsoon – will boost the earnings.

In its Q3 provisional update on stock exchanges earlier this month, Bajaj Finance announced that it has booked new loans of 7.4 million in the quarter compared to 6 million in the December quarter of last year. As of December 2021, Bajaj Finance’s customer franchise stood at 55.4 million increasing from 46.3 million as of 31 December 2020. The Company’s customer franchise increased by 2.6 million in Q3 FY22 as compared to 2.2 million in Q3 FY21.

Further, the NBFC’s asset under management (AUM) stood at approximately Rs181,300cr as of December 2021 as compared to Rs143,550cr as of December 2020. AUM in Q3 FY22, adjusted for IPO financing receivable grew by approximately Rs14,500cr. The company’s liquidity position stays strong with a consolidated surplus of approximately Rs14,300cr as of 31 December 2021.

In the provisional data, Bajaj Finance saifd that “it has not witnessed any adverse impact on its NPA due to the new method of NPA recognition.”

At around 11.23 am, Bajaj Finance was trading at Rs7884.20 per piece up by Rs32.05 or 0.41% on Sensex. The stock has touched an intraday high of Rs7944.40 per piece earlier today.