Equity

Corporate Results

Bajaj Finance
(22-Oct-2019, 21:03 Hours IST)  
Bajaj Finance has continued to post robust 63% growth in the net profit to Rs 1506.29 for the quarter ended September 2019 (Q2FY2020). Income from operations on a consolidated basis increased 44% to Rs 5462.01 crore, while other income jumped 80% to Rs 860.54 crore. Total income moved up 48% to Rs 6322.55 crore in the quarter ended September 2019. Interest expenses rose at steady pace of 48% to Rs 2323.42 crore. NII of the company galloped 48% to Rs 3999.00 crore in Q2FY2020.

Operating expenses increased 42% to Rs 1311.74 crore, allowing the operating profit to jump 51% to Rs 2687.39 crore. Depreciation moved up 112% to Rs 70.73 crore, while loan loss provisions increased 89% to Rs 594.23 crore in Q2FY2020. PBT increased 41% to Rs 2022.43 crore. Effective tax rate declined to 25.5% in Q2FY2020 from 35.6% in Q2FY2019. Net Profit of the company moved up 63% to Rs 1506.29 crore in the quarter ended September 2019.

AUM

AUM increased 38%, on yoy basis, to Rs 135533 crore at the end September 2019 from Rs 98013 crore at end September 2018. Consumer segment AUM increased 34% to Rs 51877 crore, while SME AUM moved up 33% to Rs 17789 crore. The commercial segment AUM has shown an improvement of 14% to Rs 13415 crore, while rural segments AUM surged 50% to Rs 11169 crore at end September 2019.

Deposit book jumped 60% to Rs 17633 crore end September 2019 from Rs 11014 crore end September 2018. The overall borrowings of the company increased 44% to Rs 106177 crore end September 2019 from Rs 73822 crore end September 2018.

Asset Quality

Consolidated Gross NPA, recognized as per extant RBI prudential norms and provisioned as per Expected Credit Loss (ECL) method prescribed in Ind AS, ebd September 2019 stood at 1.61% and net NPA ratio stood at 0.65%, compared with 1.60% and 0.64%, respectively a quarter ago.

The provisioning coverage ratio eased to 60% at end September 2019 from 61% a quarter ago and 65% a year ago.

Capital adequacy

The capital adequacy ratio of the company stood at 19.48% with the Tier ratio at 15.48% at end September 2019.

Book value of the company stood at Rs 382.4 per share at end September 2019, while adjusted book value (net of net NPA) stood at Rs 367.0 per share at end September 2019.

Bajaj Housing Finance

Bajaj Housing Finance is a 100% subsidiary of Bajaj Finance, registered with National Housing Bank as a Housing Finance Company. It offers full range of mortgage products such as home loans, loan against property and lease rental discounting to salaried & self employed customers. It also offers inventory finance and construction finance to developers. Its focused on mass affluent and above customer (salaried and self employed).

The company has Rs 25714 crore of assets under management end September 2019 and it delivered a post tax profit of Rs 130 crore for Q2FY20.

Capital adequacy ratio of BHFL (including Tier II capital) stood at 19.95% end September 2019. Gross NPA and Net NPA, recognized as per extant NHB prudential norms and provisioned as per Expected Credit Loss (ECL) method prescribed in Ind AS, as of 30 September 2019 stood at 0.06% and 0.03% respectively.

Strategy is to create a balanced and sustained mix of borrowings. Borrowings stood at Rs 21942 crore with a mix of 56 : 44 between banks and money markets as of 30 September 2019.

Half Yearly Financial Performance:

The company has reported 45%, on yoy basis, increase in its income from operations to Rs 10563.28 crore for the half year ended September 2019 (H1FY2020), while other income of the company surged 73% to Rs 1567.56 crore. Total income advanced 48% to Rs 12130.84 crore. Interest expenses increased 52% to Rs 4436.78 crore. NII of the company increased 45% to Rs 8516.00 crore. Operating expenses moved up 37% to Rs 2541.54 crore, allowing the operating profits to increase 50% to Rs 5152.52 crore for H1FY2020. Depreciation increased 115% to Rs 133.70 crore, while provisions galloped 79% to Rs 1144.97 crore. PBT moved up 42% to Rs 3873.85 crore. Effective tax rate increased to 30.3% in H1FY2020 from 35.6% in H1FY2019. PAT of the company was up 54% to Rs 2701.54 crore in H1FY2020.

Bajaj Finance: Consolidated Financial Results

 

Particulars1909 (3)1809 (3)Var %1909 (6)1809 (6)Var %1903 (12)1803 (12)Var %
Income from operations5462.013795.004410563.287305.014516348.7511585.5041
Other Income860.54478.30801567.56906.06732153.011171.3484
Total Income 6322.554273.304812130.848211.074818501.7612756.8445
Interest Expended2323.421565.43484436.782924.52526623.564613.9044
Operating Expense1311.74925.41422541.541851.13374053.543166.9428
Operating Profits2687.391782.46515152.523435.42507824.664976.0057
Depreciation / Amortization70.7333.38112133.7062.25115144.15102.0741
Provisions and Write-offs594.23314.57891144.97641.32791501.351030.4946
PBT2022.431434.51413873.852731.85426179.163843.4461
Tax Expense516.14511.0411172.31972.49212184.171347.0762
PAT1506.29923.47632701.541759.36543994.992496.3760
EPS104.2963.9493.5260.9069.1543.21
* Annualized on current equity of Rs 115.55 crore. Face Value: Rs 2, Figures in Rs crore
Source: Capitaline Corporate Database

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