BackBajaj Finance Q1 results: Net profit rises 159% to ₹2,596 cr, new loans booked soars 60%
The NBFC's net interest income (NII) climbed by 48% to ₹6,638 crore in the quarter under review from ₹4,489 crore in Q1 of last year. During Q1FY23, new loans booked jumped by 60% to 7.42 million as against 4.63 million in Q1FY22.
PremiumNBFC-giant, Bajaj Finance witnessed a strong June 2022 (Q1FY23) quarter with net profit rising by a whopping 159% to ₹2,596 crore compared to ₹1,002 crore in the same quarter last year. Net interest income (NII) climbed by 48% to ₹6,638 crore in the quarter under review from ₹4,489 crore in Q1 of last year. During Q1FY23, new loans booked jumped by 60% to 7.42 million as against 4.63 million in Q1FY22.
As of June 30, 2022, Bajaj Finance's asset under management (AUM) increased by 28% to ₹204,018 crore compared to ₹159,057 crore as of June 30, 2021. Core AUM growth was at ₹11,931 crore during Q1FY23.
Meanwhile, the company's total operating expenses to net interest income for Q1FY23 was at 35.9% as against 30.6% in Q1FY22.
Further, loan losses and provisions for Q1FY23 were at ₹755 crore as against ₹1,750 crore in the same quarter last year. The company holds management and macro-economic overlay of ₹1,000 crore as of 30 June 2022.
In terms of asset quality, Bajaj Finance's gross NPA and net NPA stood at 1.25% and 0.51% respectively in Q1FY23, compared to 2.96% and 1.46% in the same period a year ago. The NBFC's provisioning coverage ratio is at 60% on stage 3 assets and 130 basis points on stage 1 and 2 assets as of June 30, 2022.
Moreover, the capital adequacy ratio (including Tier-II capital) in Q1FY23 was at 26.16%. The Tier-I capital was 23.84% in the quarter.
On a standalone basis, Bajaj Finance posted a net profit of ₹2,356 crore in Q1FY23 rising by 179% from 843 crore in Q1FY22. Net interest income for Q1 FY23 increased by 48% to ₹6,140 crore from ₹4,153 crore in Q1FY22.
Subsidiary Bajaj Housing Finance registered a 96% growth in net profit to ₹316 crore in Q1FY23 from ₹161 crore in Q1FY22. The HFC's net interest income stood at ₹594 crore up 77% yoy. It's AUM grew by 40% to ₹57,425 crore as of June 30, 2022, from ₹40,941 crore as of June 30, 2021.
As for Bajaj Financial Securities, the subsidiary clocked a profit of ₹1 crore against a loss of ₹3 crore in Q1FY22. Total Income for Q1FY23 was at ₹38 crore as against ₹15 crore for Q1FY22. Customers acquired during Q1FY23 were approximately 36,500. BFinsec's customer franchise as of June 30, 2022, was over 367,500. Margin trade financing (MTF) book stood at ₹741 crore in Q1FY23 as against ₹200 crore in Q1FY22.
On BSE, Bajaj Finance shares closed at ₹6405 apiece up by ₹145.15 or 2.32%. Its market cap is around ₹3,87,459.57 crore.
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