Bajaj Finance Q3 results today: Profit likely to surge over 20%; provisions may rise. key things to watch

Bajaj Finance is expected to report over 20 per cent year-on-year (YoY) rise in net profit on 30-35 per cent rise in net interest income. Provisions are seen rising while net interest margin (NIM) is seen in the range of 10.1 per cent to 10.5 per cent.

Axis Securities said expects Bajaj Finance to report 26.1 per cent YoY rise in net profit at Rs 3,748 crore against Rs 2,973 crore YoY. NII is seen jumping 29.4 per cent YoY to Rs 7,661 crore. Provisions are seen at Rs 1,156 crore, higher than Rs 1,077 crore in the September quarter and Rs 841 crore in the year-ago quarter.

"AUM Growth has remained healthy at 7 per cent QoQ; strong performance continues across operational metrics. Margins are likely to decline by 10-15 bps QoQ owing to inch-up in CoF, C-I Ratio may remain steady. Credit costs (%) and asset quality expected to remain stable QoQ. Key monitorables: commentary on sustenance of growth momentum and scale-up of new products."

Jefferies expects Bajaj Finance Ltd to report 21 per cent YoY rise in profit at Rs 3,604 crore for the December quarter 25 per cent jump in NII at Rs 7,427.90 crore. It sees pre-provision operating profit at Rs 4,852.90 crore, up 24 per cent. It expects provisions to come in at 1.5 per cent as percentage of average loans. NIM is seen at 10.1 per cent, down 72 basis points over 10.8 per cent in the year-ago quarter.  

In its provisional update, Bajaj Finance said its AUM growth was up 35 per cent, which was higher than Jefferies' estimate of 31 per cent for FY24.  Growth in customer base remained strong for the quarter at 22 per cent YoY with higher growth in new loans booked of 26 per cent YoY. Deposits were up 35 per cent YoY, Jefferies said.

Nomura India said Q3 profit for Bajaj Finance may come in at Rs 3,760 crore and NII at Rs 7,560 crore. It sees NI at 10.5 per cent. Credit cost is seen at 1.5 per cent, return on asset 4.8 per cent and return on equity at 24 per cent.

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