Q3FY23 Preview: Bajaj Finance: NII seen at Rs58,756 million, PAT at Rs29,370 million

27 Jan 2023 , 07:39 AM

Result date: 27^th January, 2023

Recommendation: Add

Target price: Rs8,380

Source: IIFL Research

 

Bajaj Finance is likely to post healthy 30% growth in Assets Under Management (AUM) during the December 2022 quarter. Sequentially, this metric is estimated to grow by 8%. The company could post 24.3% growth in its Net Interest Income over the year-ago quarter. Net income could increase by 22.0%.

Rising cost of funds could pull down the margin during the quarter. Operating expense, too could remain high with the C/I ratio of about 35-36%. 

Improving collections could aid overall asset quality performance of the company. Credit costs could remain flattish sequentially with a downward bias.

Profit After Tax or PAT could grow 38.2% over the year-ago quarter.

Important management insights to watch out for:

• Growth outlook across key segments
• Margin drivers and outlook

Rs. Million	December 2022 estimates	YoY change	QoQ change
NII	58,756	24.3%	6.1%
Net Income	73,247	22.0%	4.6%
Operating profit	46,835	19.5%	4.4%
Profit After Tax	29,370	38.2%	5.6%

Source: Brokerage reports