How did you find the latest quarter results of Bajaj Finance?

Bajaj Finance reported strong numbers for the December 2021 quarter on the back of robust interest income and flat interest costs. The outcome was a sharp rise in the net interest income and a boost to operating profits. The consumer finance king of India did very well despite some buying hesitation seen in the markets overall. Here is a gist.

Revenues were up 28.2 at Rs.8,535 crore for the Dec-21 quarter. Accretion to AUM at Bajaj Finance in the quarterly was at a record level of Rs.14,700 crore while the new loan 74.5 lakh accounts were added in the Dec-21 quarter by the company. Bajaj Finance already boasts of a overall revenue giving customer base of 5.54 crore, recording a rise of 20% on a yoy basis compared to the previous quarter.

The overall AUM of Bajaj Finance stands at Rs181,250cr, a virtual stranglehold on the consumer finance franchise in India. This has resulted in operating profits spiking by 84.5% yoy on the strength of a 40% rise in NII at Rs.6,000 crore. The higher operating expense ratio was more than compensated by a large business volume and better yield realizations by Bajaj Finance in the quarter.

Net Profits for the Dec-21 quarter was up 85.5% yoy at Rs.2,125 crore as Bajaj Finance gained from lower impairment costs. In fact, the loan loss provisions fell 22.2% yoy to Rs.1,051 crore. During the quarter, the operating margins increased sharply from 23.35% in Dec-20 quarter to 33.60% in the Dec-21 quarter. During the same period, the net margins also spiked sharply from 17.22% to 24.90%.

Asset quality showed relative improvement on a yoy basis. Gross NPAs tapered to 1.73% as compared to 2.45% a year ago. Even net NPAs were lower at 0.78% compared to 1.10% lats year. Overall, it has bene a satisfactory quarter for Bajaj Finance.