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

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4 months ago
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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.

Bajaj Finance

Rs in Crore

Dec-21

Dec-20

YOY

Sep-21

QOQ

Total Income (Rs cr)

₹ 8,535.06

₹ 6,656.13

28.23%

₹ 7,731.36

10.40%

Operating Profit (Rs cr)

₹ 2,867.98

₹ 1,554.51

84.49%

₹ 2,004.45

43.08%

Net Profit (Rs cr)

₹ 2,125.29

₹ 1,145.98

85.46%

₹ 1,480.99

43.50%

Diluted EPS (Rs)

₹ 35.02

₹ 18.94

₹ 24.58

OPM

33.60%

23.35%

25.93%

Net Margins

24.90%

17.22%

19.16%

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.

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