Bajaj Finance Q2 Results: Net Profit Surges 13% To Rs 4,000 Cr; Net Interest Income Stood At Rs 8,838 Cr

On October 22, Bajaj Finance announced that its net profit for the quarter ending September 30, 2024, was up by 13% to Rs 4,000 crore. In the year-ago quarter, it posted a net profit of Rs 3,551 crore. From Rs 7,196 crore in Q2FY24 to Rs 8,838 crore in Q2FY25, net interest income grew by 23%. From Rs 8,847 crore in Q2FY24 to Rs 10,946 crore in Q2FY25, net total income grew by 24%. According to a stock market statement by Bajaj Finance, consolidated assets under management increased 29% to Rs 3.73 lakh crore as of September 30, 2024, from Rs 2.9 lakh crore in the same time last year. According to Bajaj Finance, AUM increased by Rs 19,732 crore in Q2FY25.

As of September 30, 2024, there were 92.09 million customer franchises, a 20% increase from the 76.56 million in September 2023. In the second quarter of FY25, the customer franchise rose by 3.98 million.

By purchasing 1,107,4 19, 709 equity shares with a face value of Rs 10 each for cash at Rs 18.06 (plus a premium of Rs 8.06) per share, the company invested Rs 2,000 crore in Bajaj Housing Finance Ltd. (BHFL), a subsidiary of the company, on April 3, 2024.

By subscribing to 164,880,458 equity shares of face value Rs 10 each for cash at Rs 12.13 (including a premium of Rs 2.13) per share, offered on the right basis, the company invested Rs 200 crore in Bajaj Financial Securities Ltd, a wholly owned subsidiary of the company, on June 27, 2024.

At its 37th Annual General Meeting on July 23, 2024, the company's shareholders authorised a final dividend of Rs 36 per equity share for the year that ended on March 31, 2024.

As part of BHFL's initial public offering, the company sold 428,571,428 equity shares of BHFL at a price of Rs 70 each during the quarter and a half that ended on September 30, 2024, for a total of Rs 3,000 crore. A gain of Rs 2,544.11 crore (net of issue expenses) has been the outcome of this.

Compared to 8.53 million in Q2 of FY24, the number of new loans booked climbed by 14% in Q2 of FY25 to 9.69 million. From Rs 8,847 crore in Q2 FY24 to Rs 10,946 crore in Q2 FY25, net total income grew by 24%. Pre-provisioning operating profit climbed from Rs 5,835 crore in Q2 FY24 to Rs 7,307 crore in Q2 FY25, a 25% rise. Compared to Rs 1,077 crore in Q2 FY24, loan losses and provisions for Q2 FY25 was Rs 1,909 crore. From Rs 4, 758 crore in Q2 FY24 to Rs 5,401 crore in Q2 FY25, profit before tax climbed by 14%.

As of September 30, 2024, gross non-performing assets (NPA) and net non-performing assets (NPA) were 1.06% and 0.46%, respectively, compared to 0.91% and 0.31% on the same period in 2023. On stage 3 assets, the provisioning coverage ratio was 57%.

The company's long-term debt program has the highest credit rating of AAA/Stable from CRISIL, ICRA, CARE, and India Ratings; its short-term debt program has an A1+ rating from CRISIL, ICRA, CARE, and India Ratings; and its fixed deposits program has a AAA (Stable) rating from CRISIL and ICRA. S&P Global Ratings has given the company an A-3 short-term issuer rating and an 888-/Stable long-term issuer rating. Moody's gave the company its first-ever 8aa3/P-3 long-term and short-term foreign and local currency issuer ratings with a stable outlook on October 17, 2024.