Bajaj Finance to share Q4 results today; profit may rise 15-20%, NII by 28-30% ; here's earnings preview
Bajaj Finance Q4 results preview: Axis Securities expects Bajaj Finance to log 20.8 per cent YoY growth in net profit at Rs 3,813 crore compared with Rs 3,156 crore in the same quarter last year.
- Apr 25, 2024,
- Updated Apr 25, 2024 9:25 AM IST
Bajaj Finance Ltd is expected to report 15-20 per cent rise in year-on-year (YoY) net profit for the March quarter on a 28-30 per cent jump in net interest income (NII). Net interest margin (NIM) is seen contracting on both sequential and YoY basis. While new loans booked during the quarter were lower due to RBI restrictions, Bajaj Finance has been able to deliver robust AUM growth of 34 per cent YoY in Q4FY24. All eyes would be on commentary on sustenance of growth momentum and scale-up of new products, analysts said.
Axis Securities expects Bajaj Finance to log 20.8 per cent YoY growth in net profit at Rs 3,813 crore compared with Rs 3,156 crore in the same quarter last year. NII is seen growing 29.7 per cent to Rs 8,110 crore compared with Rs 6,255 crore in the corresponding quarter last year. Provisions are seen rising 9 per cent sequentially at Rs 1,364 crore.
Margin is likely to decline 10 basis points QoQ, owing to an inch-up in cost of funds while the C-I Ratio may remain steady, Axis Securities said adding that credit costs and asset quality are expected to remain broadly stable sequentially.
Bajaj Finance's total customer franchise stood at 8.36 crore, up 21 per cent YoY. New customer acquisition stood at 32 lakhs.
Nirmal Bang sees profit at Rs 3,661 crore, up 16 per cent YoY. It sees NII at Rs 9,580 crore, up 29 per cent. It sees NIM at 10 per cent, down 44 basis points over year-ago’s 10.5 per cent. Sequentially, NIM is seen falling 16 basis points over December quarter's 10.2 per cent. Cost-to-income ratio (%) is seen at 34.9 per cent, down 86 basis points. Credit cost is seen at 2.3 per cent, up 86 basis points.
Kotak Institutional Equities said Bajaj Finance reported 6 per cent QoQ loan growth against 7-9 per cent QOQ in the last four quarters, driving 34 per cent YoY growth in AUM. NIM will likely contract 20 bps QoQ, reflecting further increase in cost of funds.
"We expect expense control efforts to reduce the cost-to-average AUM ratio to 4 per cent from 4.2 per cent in 3QFY24 and 4.4 per cent in 4QFY23. We model a moderate increase in credit costs to 1.8 per cent for 4QFY24 (1.4-1.6 per cent in the previous four quarters) as guided by management in the last earnings call," it said.
This brokerage sees profit growing at 18.3 per cent and NII 28.2 per cent.
Bajaj Finance Ltd is expected to report 15-20 per cent rise in year-on-year (YoY) net profit for the March quarter on a 28-30 per cent jump in net interest income (NII). Net interest margin (NIM) is seen contracting on both sequential and YoY basis. While new loans booked during the quarter were lower due to RBI restrictions, Bajaj Finance has been able to deliver robust AUM growth of 34 per cent YoY in Q4FY24. All eyes would be on commentary on sustenance of growth momentum and scale-up of new products, analysts said.
Axis Securities expects Bajaj Finance to log 20.8 per cent YoY growth in net profit at Rs 3,813 crore compared with Rs 3,156 crore in the same quarter last year. NII is seen growing 29.7 per cent to Rs 8,110 crore compared with Rs 6,255 crore in the corresponding quarter last year. Provisions are seen rising 9 per cent sequentially at Rs 1,364 crore.
Margin is likely to decline 10 basis points QoQ, owing to an inch-up in cost of funds while the C-I Ratio may remain steady, Axis Securities said adding that credit costs and asset quality are expected to remain broadly stable sequentially.
Bajaj Finance's total customer franchise stood at 8.36 crore, up 21 per cent YoY. New customer acquisition stood at 32 lakhs.
Nirmal Bang sees profit at Rs 3,661 crore, up 16 per cent YoY. It sees NII at Rs 9,580 crore, up 29 per cent. It sees NIM at 10 per cent, down 44 basis points over year-ago’s 10.5 per cent. Sequentially, NIM is seen falling 16 basis points over December quarter's 10.2 per cent. Cost-to-income ratio (%) is seen at 34.9 per cent, down 86 basis points. Credit cost is seen at 2.3 per cent, up 86 basis points.
Kotak Institutional Equities said Bajaj Finance reported 6 per cent QoQ loan growth against 7-9 per cent QOQ in the last four quarters, driving 34 per cent YoY growth in AUM. NIM will likely contract 20 bps QoQ, reflecting further increase in cost of funds.
"We expect expense control efforts to reduce the cost-to-average AUM ratio to 4 per cent from 4.2 per cent in 3QFY24 and 4.4 per cent in 4QFY23. We model a moderate increase in credit costs to 1.8 per cent for 4QFY24 (1.4-1.6 per cent in the previous four quarters) as guided by management in the last earnings call," it said.
This brokerage sees profit growing at 18.3 per cent and NII 28.2 per cent.