Bajaj Finance Records A Robust 30% (YOY) Growth For Q4FY23

Leading non-banking finance company, Bajaj Finance Limited witnessed a robust growth of 30% in consolidated profit after tax (PAT) for the quarter ended March 31, 2023 over same period last year.

It was registered at Rs 3,158 crore for Q4FY23 higher than the market estimates of roughly around Rs 2,419 crore and Rs 2.420 crore in Q4FY22.

The company's net interest income for the quarter incresed by 28% to Rs 7,771 crore from Rs 6,061 recorded last year. The company declared its quarterly numbers through a press release filed on the securities exchnage on Wednesday evening.

Loan losses and provisions for 04 FY23 was at Rs 859 crore as against Rs 702 crore last year. The company holds a management and macro-economic overlay of Rs 960 crore as of 31 March 2023.

The Gross NPA and Net NPA as of 31 March 2023 stood at 0. 94% and 0.34% respectively. as compared to 1.60% and 0.68% as of 31 March 2022. Additionally, the company has provisioning coverage ratio of 64% on stage 3 assets and 118 bps on stage 1 and 2 assets along with capital adequacy ratio (including Tier-II capital) as of 31 March 2023 was 24.97% and Tier I capital was 23.20%.

Bajaj Finance Limited Standalone Q4 Results
Individually, Bajaj Finance Limited reported assets under management (AUM) growth of by 28% to Rs 1,80,999 crore as of 31 March 2023 from core AUM of Rs 1,41,378 crore as of 31 March 2022. Its net interest income increased by 25% to Rs 7,104 crore from Rs 5,666 crore last year.

The loan losses and provisions stood at Rs 803 crore as against Rs 664 crore over previous year's value. For the fourth quarter, company holds a management and macro-economic overlay of Rs723 crore as of 31 March 2023. While PAT for Q4FY23 increased by 25% to Rs 2,837 crore from Rs Rs 2,268 crore in Q4FY22.

Bajaj Housing Finance Limited Q4 Results
The subsidiary company, Bajaj Housing Finance Limited's net income increased by 40% to Rs 631 crore for Q4 from Rs 452 crore same period last year. The PAT rose by 53% to Rs 302 crore from Rs 198 crore in 0 4 FY22.

The company's loan losses and provisions for 04 FY23 was at Rs 57 crore as against Rs 38 crore in 04 FY22. BHFL holds a management and macro-economic overlay of Rs 237 crore as of 31 March 2023.

For BHFL Gross NPA and Net NPA as of 31 March 2023 stood at 0.22% and 0.08% respectively. as against 0.31% and 0.14% as of 31 March 2022. BHFL has provisioning coverage rat io of 64% on stage 3 assets and 70 bps on stage 1 and 2 assets as of 31 March 20 23. Also the AUM has grown by 30% to Rs 69,228 crore as of 31 March 2023 from Rs 53,322 crore as of 31 March 2022.

Bajaj Financial Securities Limited
The securities arm of the parent company acquired approximately 41,800 and 2,34100 during 04 FY23 and FY23 respectively. While the customer franchise was over 5,65100.

Margin trade financing (MTF) book stood at Rs 1,064 crore as of 31 March 2023 as against Rs720 crore as of 31 March 2022.

Also it reported a total income of Rs 58 crore and Rs 204 crore for Q4 FY23 and FY23 wasrespectively. While PAT for Q4FY23 and FY23 came it at Rs 3 crore and Rs 8 crore respectively.

Yearly Performance
For the full year FY23 Bajaj Finance Limited operating expenses to net interest income jumped by 35.1% as against 34.7% in FY22. PAT increased by 64% to Rs 11,508 crore from Rs 7,028 crore in a year.

The core AUM was up 29% at Rs 2,47,379 crore as against Rs 1,92,087 crore as of 31 March 2022. It registered new loans book growth by 20% to 29.58 million as of 31 March 2023 as against 24.68 million as of 31 March 2022. also, the customer franchise increased by 20% to 69.14 million as of as against 57.57 million last year.

In FY23, loan loss to average loan receivables was 1.47%. Loan losses and provisions for FY23 was Rs 3,190 crore as against Rs 4,803 crore in FY22 and has a management and macro-economic overlay provision of Rs 960 crore as of March end. Also the return on assets (ROA) and return on equity was at 5.3% and 23.5% respectively.

Dividend details
The Board of Directors has recommended a dividend of Rs 30 per equity share of the face value of ₹ 2 (1500%) for FY23. This amounts to 17.65% of standalone profit for FY23 and is in line with the Company's dividend distribution policy.

The record date for the purpose of determining the members eligible to receive the dividend
for the financial year end is Friday, 30 June 2023.

Share price movement
The latest market price of Bajaj Finance Limited stock closed at Rs 6054.80 per share, it was down by 0.39% on intraday basis. With one year the share price has stteply fallen by nearly 16.38% while in three years it has surged exponentially by 206.35%.