- 29 Jul 2024
- ICICIdirect
Bajaj Finance Q1 Results 2025: Net profit jumps to Rs 3,912 Cr
Bajaj Finance reported its Q1FY25 numbers on Tuesday, 23rd July. On Tuesday, Bajaj Finance's share closed lower at Rs 6,727.10 on the NSE. Let us look at everything in detail about Bajaj Finance's Q1FY25 result.
About Bajaj Finance
Bajaj Finance is a prominent non-banking financial company (NBFC). It offers a wide range of financial products and services, including consumer loans, personal loans, and investment options. It is known for its strong market presence and customer base. Bajaj Finance is also India's largest NBFC.
Crucial Parameters
- PE: 32.96
- 52-week high: Rs 8,190.00
- Market Cap: Rs 4,16,720.70 crore
- ROE: 17.56
Share Price Movement
In the last month, Bajaj Finance's share price has fallen over 5%. In a six-month period, the return has been negative, with more than a 12% fall. Similarly, in one year period, the share price has declined by 10.70%. For the 5-year time frame, Bajaj Finance share has doubled investors' wealth with more than 105% returns.
How has Bajaj Finance performed in Q1FY25?
Below are key highlights of Bajaj Finance's Q1FY25 numbers:
Profits: Bajaj Finance reported a profit of Rs 3,912 crore for Q1FY25, a strong growth of 14% compared to the year-ago period. Sequentially, the profit is up from Rs 3,825 crore. In the same quarter last financial year, the company reported a net profit of Rs 3,436 crore.
Net Interest Income: Bajaj Finance's NII grew by 25% to Rs 8,365 crore, as against Rs 6,717 crore in Q1FY24. NIM compression in Q1 over Q4 was 23 bps. This movement was due to the cost of funds. The 10 bps movement was due to AUM composition.
Asset Quality: Bajaj Finance reported a GNPA (Gross Net Performing Asset) of 0.86% and NNPA (Net) of 0.38% for the quarter that ended in June. In the previous quarter, the GNPA and NNPA were 0.85% and 0.37%, respectively.
Gross loan losses and provisions were Rs 1,790 crore. Gross loan loss to average AUF was 2.12% in Q1. Loan losses and provisions in Q1 were elevated primarily on account of muted collection efficiencies. Stage 2 assets in Q1 went up by Rs 865 crore over Q4. The Company is augmenting its debt management infrastructure as a mitigation measure. The Company remains watchful across portfolios and is also proactively pruning segments.
AUM and balance sheet: The company’s assets under management grew 31% to Rs 3.54 lakh crore in Q1FY25 from Rs 2.70 lakh crore in the year-ago period. AUM in the June quarter grew by Rs 23,577 crore. New loans booked were up 10% to 10.97 million in Q1FY25 as against 9.94 million in Q1FY24.
Customer Base: In Q1FY25, Bajaj Finance added 4.47 million customers to the franchise, the highest-ever quarterly increase in its customer franchise. Customer franchise stood at 88.11 million as of 30 June 2024. Cross-sell franchises stood at 55.14 million. In Q1, the Company added 57 new locations and added 8.9K distribution points. Geographic presence stood at 4,202 locations and over 207K active distribution points as of 30 June 2024.
Deposits: Deposit book grew by 26% YoY and stood at Rs 62,774 crore as of 30 June 2024. In the June quarter, net deposit growth was Rs 2,623 crore. In Q1, the cost of funds was 7.94%, an increase of 8 basis points over Q4 FY24.
Other Updates: In Q1, the company delivered an annualized ROA of 4.63%, as against 5.42% in Q1FY24. In the June quarter, Bajaj Finance delivered an annualized ROE of 19.86%, as against 24.47% in Q1FY24. Also, Capital adequacy remained strong at 21.65% as of 30 June 2024. Tier-1 capital was 20.73%.
How have Bajaj Finance's subsidiaries performed?
Below is the performance of Bajaj Finance's subsidiaries:
- Bajaj Housing Finance Limited: The AUM was up 31% at Rs 97,071 crore in Q1FY25, as against Rs 74,124 crore as of 30 June 2023. The NII increased by 10% to Rs 665 crore. GNPA & NNPA stood at 0.28% and 0.11% as of 30 June 2024, as against 0.23% and 0.08% as of 30 June 2023. Profit after tax grew by 5% to Rs 483 crore in Q1FY25 due to a one-time reversal of deferred tax liability of Rs 73 crore in Q1FY24.
- Bajaj Financial Securities Limited (BFinsec): Margin Trading Finance AUM grew by 265% at Rs 4,390 crore, as against Rs 1,202 crore as of 30 June 2023. Added 57K customers to its franchise in Q1. Retail and HNI customer franchise stood at 756K as of 30 June 2024.