Bajaj Finance Q3 results today; net profit likely to grow 41% but margin concerns persist
Bajaj Finance Q3 Results Preview: The company is expected to report a 41 per cent jump in consolidated net profit to Rs 3,000 crore for the quarter ended December 2022, according to Zee Business research.
Bajaj Finance is expected to report a 41 per cent jump in consolidated net profit to Rs 3,000 crore for the quarter ended December 2022, according to Zee Business research. The non-banking financial services (NBFC) company had reported a net profit of Rs 2,125.3 crore for the corresponding period a year ago.
Pune-based Bajaj Finance will report its earnings for the October-December quarter of the current financial year on Friday, January 27, 2023.
Net interest income (NII) — or the difference between interest earned and interest paid — may jump 25.4 per cent to Rs 5,930 crore compared with the year-ago period.
The company's margin and spread are expected to shrink on a quarter-on-quarter basis. The credit cost may also dip marginally though asset quality may improve on better collections in the quarter ended December 2022.
According to Axis Securities, the operational parameters and AUM growth is seen to grow 27 per cent YoY, however, the commentary on forward growth will be keenly watched.
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The brokerage expects margin pressure amid the rising cost of funds and cost-income ratio, which it estimates in the range of 35-36 per cent.
Q3 Business Update
In a quarterly update, Bajaj Finance had said that its assets under management (AUM) grew 27 per cent to around Rs 2.31 lakh crore from Rs 1.8 lakh crore as of December 31, 2022.
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Its deposit book expanded 41 per cent to Rs 43,000 crore, according to the business update. Its net liquidity was at Rs 12,750 crore and Capital Adequacy Ratio (CAR) at 25.1 per cent, as of December 31, 2022.
Shares of Bajaj Finance on Wednesday slipped by one per cent to end at Rs 5,796.9 apiece on BSE.
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