30-Jan-2024
2 mins read
India’s one of top Non-banking financial services company Bajaj Finance released the FY24 third quarter earnings on Monday, 29 January 2024. It reported consolidated net profit of Rs 3,638.95 crore for the period between October to December 2023.
Net profit jumped 22% as compared to the previous year profit of Rs 2,973 crore. Company’s net interest income grew 25% on YoY basis to Rs 9,293 crore for the quarter ended in December 2023.
Gross NPA and Net NPA Improved
Gross Non performing assets (GNPA) for the December quarter stood at 0.95% and Net NPA stood at 0.37%. However, in the previous financial year December 2022 quarter the GNPA was at 1.14% and Net NPA was at 0.41%.
Therefore we can see improvement in both GNPA and NNPA. The provision coverage ratio is 62% on stage three assets as on December 2023.
Bajaj Finance operating expenses to net total income for Q3 is at 33.9% against the 34.8% in the same quarter in FY23. The Q3 pre provisioning operating profit increased by 27% to Rs 6,142 crore from Rs 4,853 crore in the same quarter last year.
Bajaj Finance AUM Update and Deposit Book Update
According to Bajaj Finance quarterly business update, Company recorded a growth in its AUM to Rs 3.11 lakh crore. This is the first time that company’s AUM crossed the 3 lakh crore mark. The NBFC has booked 98.6 lakh new loans in Q3, which is a growth of 26% from 78.4 lakh loans in the third quarter last year.
Company’s customer franchise by 38.5 lakh from 6.6 crore same period last year to 8.41 crore in the December quarter. The Deposit book also increased by 35% YoY to Rs 58,000 crore in December quarter end, compared to Rs 42,948 crore in the year ago period.
Market Reaction After Earnings
Yesterday, On 29 January 2024, Bajaj finance stock price closed at Rs 7191.65 per share. But the company releases the Q3 results after the bell. So, the share price is reacting and adjusting today on January 30, 2024. Presently, the stock is trading at Rs 6,882 with an intraday decline of -4.30%.