Private sector non-banking financial company (NBFC) Bajaj Finance on Tuesday reported a net profit of Rs 4,066 crore for the quarter ended December 31, marking a decline of 5.6 per cent from its net profit for the corresponding period a year ago. The quarterly net profit fell short of Street expectations.
Earlier on Tuesday, Bajaj Finance shares jumped 6.7 per cent to end at Rs 964.8 apiece on BSE amid a broad-based recovery on Dalal Street, driven by optimism around a major trade deal between India and the US in a second day of recovery following the Budget Day sell-off.
Bajaj Finance Q3 Earnings | Profit & interest income vs estimates
The NBFC’s fiscal third-quarter net profit failed to keep up with analysts’ estimates.
According to Zee Business research, Bajaj Finance was estimated to register a net profit of Rs 5,173 crore for the October-December period.
Bajaj Finance’s quarterly net interest income (NII) — a key measure of revenue — jumped 20.6 per cent on a year-on-year basis to Rs 11,318 crore, according to a regulatory filing.
The analysts had estimated this metric at Rs 11,268 crore.
Its profit before tax (PBT) increased 23 per cent to Rs 7,102 crore.
The company recorded an impact of Rs 265 crore due to the introduction of new labour codes during the quarter.
It said its consolidated profit after tax before the accelerated expected credit loss (ECL) provision, the one-time new labour codes charge and tax stood at Rs 5,317 crore for Q3, marking 23 per cent growth over the year-ago period.
Bajaj Finance Results | Assets under management up 22%
The NBFC said its assets under management (AUM) grew 22 per cent to Rs 4,84,477 crore, driven by good momentum in disbursements amid higher portfolio attrition, as of December 31.
Bajaj Finance Results | Asset quality
Its asset quality improved, reflected in a sequential decline in bad assets.
Bajaj Finance’s gross non-performing assets (GNPAs) stood at 1.21 per cent and 0.47 per cent as of December 31, improving from 1.24 per cent and 0.60 per cent at the end of September 30, respectively.
Bajaj Finance shares
At the current level, the largecap stock is down 0.9 per cent for the year so far, while the Nifty50 and Nifty Bank indices have declined 1.6 per cent and risen 0.6 per cent, respectively.
In the last one year, it has gained 14.4 per cent, better than a 10.1 per cent rise in the Nifty50 but worse than a 22 per cent rally in the banking gauge.
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