Bajaj Finance Q1 results: Net profit up 13.8% YoY to ₹3,912 crore, revenue at ₹14,04 crore

Non-banking financial company Bajaj Finance, on July 23, posted its financial results for the quarter ending on June 20, 2024. The NBFC posted a 13.8 per cent year-on-year (YoY) rise in its net profit to ₹3,912 crore. According to street estimates, the profit after tax was slightly below the market expectations.

Meanwhile, Net Interest Income (NII) grew over 25 per cent YoY for the reporting quarter to ₹8,365 crore from ₹6,717 crore in the same quarter of last year.

Pre-provisioning operating profit for the first quarter surged 25 per cent year-on-year to ₹6,947 crore, up from ₹5,543 crore in the same quarter last year.

Loan losses and provisions for the April-June 2024 period rose to ₹1,685 crore, compared to ₹995 crore in the corresponding period of the previous year.

The total net income also rose by 24 per cent YoY to 10,418 crore in the reporting quarter.

During the first quarter, the number of new loans issued increased by 10 per cent to 10.97 million, compared to 9.94 million a year ago. The company resumed the sanctioning and disbursal of loans under 'eCOM' and 'Insta EMI Card' and began issuing EMI cards again after the RBI lifted restrictions on these activities in May.

The customer base reached 88.11 million by the end of June 2024, up from 72.98 million in June 2023, reflecting a 21 per cent growth. In Q1 FY25 alone, the customer base grew by 4.47 million.

Regarding asset quality, the gross NPA (non-performing asset) ratio was 0.86 per cent, and the net NPA ratio was 0.38 per cent at the end of the June quarter. These figures were 0.87 per cent and 0.31 per cent at the end of the same quarter last year.

The company has a provisioning coverage ratio of 56 per cent on stage 3 assets. The capital adequacy ratio (including Tier-II capital) was 21.65 per cent, with Tier-I capital at 20.73 per cent.

Assets under management (AUM) grew by 31 per cent year-on-year during the first quarter, reaching ₹3.54 lakh crore, compared to ₹2.7 lakh crore in the same quarter last year.