Bajaj Finance Q3 Results Review - On Track For Better Earnings Momentum: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Bajaj Finance Ltd.’s Q3 FY23 profit after tax grew 40% YoY to ~Rs 29.7 billion (inline). This healthy performance was driven by strong velocity in customer additions/ new loan acquisitions,the ability to maintain stable margins, and a slight moderation in opex ratios, aided by operating leverage. In nine months-FY23, profit after tax grew ~82% YoY to ~Rs 83.5 billion (Rs 46 billion in 9MFY22).Net interest income grew 25% YoY to Rs 59.2 billion. Other operating income grew 19% YoY, driven by a healthy improvement in fee income. Adjusted net total income grew 28% YoY (after adjusting NII of ~Rs 2 billion earned on IPO financing in Q3 FY22). Q3 FY23 net interest margin (calc.) was stable QoQ at ~13.2%. We expect NIM to compress by ~35bp in FY24, driven by Bajaj Finance’s higher cost of borrowing and pressure on yields in a highly competitive landscape..Click on the attachment to read the full report:.Bajaj Finance Q3 Results Review - Stable Margin, Lower Cost Aid Profitability: Nirmal Bang.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bajaj Finance Q3 Results Review - On Track For Better Earnings Momentum: Motilal Oswal

Customer acquisitions and the new loan trajectory have been strong.

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