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Prabhudas Lilladher Report
Bajaj Finance Ltd.’s Q3 FY23 earnings (profit after tax at Rs 29.7 billion) stood in line with our estimates (Rs 30.0 billion), on account of strong net interest income growth. Pre provision operating profit aided by healthy NII grew 8.2% QoQ/23.8% YoY to Rs 48.5 billion above our estimates (Rs 47.9 billion).
Margins sustained, as rate hikes did not have an adverse impact on cost of funds and net interest margin for Q3 FY23 came in at 13.24% versus 13.26% in Q2 FY23. Bajaj Finance’s asset quality exhibited improvement during Q3 FY23 with-
significant improvement in auto finance asset quality (gross non-performing asset % at 5.99% versus 8.01% (Q3 FY23)),
expected credit loss stage-III provision at 8.4 billion versus Rs 7.3 billion (Q2 FY23),
largely stable provision coverage ratio at 64% versus 62% (Q2 FY23).
Overall stage-II assets stood at Rs 3.94 billion as of December 31, 2022 as against Rs 4.38 billion of September 30, 2022.
In Q3 FY23, Bajaj Finance reported its highest ever customer franchise addition in a quarter- even bettering record set in Q1 FY23. The company added 3.14 million customers, customer franchise grew 4.9%QoQ to 66.05 million and assets under management grew at 5.7% QoQ/27.4% YoY at Rs 2,308 billion.
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More Research Reports On Bajaj Finance's Q3 FY23 Results Review
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