Bajaj Finance Q3 Results Review - Stable Margin, Lower Cost Aid Profitability: Nirmal Bang

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. .Nirmal Bang Report.Bajaj Finance Ltd. reported net profit growth of 40% YoY, which was in line with our estimate, led by healthy operating performance and lower provisions. Assets under management momentum slowed marginally, coming in at 5.7% QoQ (27% YoY) as the company prioritized margins over growth. Customer acquisition was at a record high level of 3.14 million in Q3 FY23 and the company is on track to acquire more than 11 million customers for FY23. Net interest income growth came in at 25% YoY, largely in-line with our estimate, driven by AUM growth. Net interest margin compressed on YoY basis. Moreover, adjusting for the discontinued IPO financing business last year, NIM would have been largely flat. Core fee income remained healthy at 19% YoY, leading to net revenue growth of 24% YoY. Opex increased by 24% YoY and consequently cost/income ratio was largely flat on YoY basis at 34.7%. Bajaj Finance's management indicated that most of the investment has been done and as operating leverage kicks in, the cost/income ratio is likely to decline going forward. Operating profit increased by 23.8% YoY, which was 3% above our estimate..Click on the attachment to read the full report:.Bajaj Finance Q3 Results Review - Sustainable Performance To Aid Valuation: ICICI Direct.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 - Stable Margin, Lower Cost Aid Profitability: Nirmal Bang

Customer acquisition was at a record high level in Q3, Bajaj Finance is on track to acquire more than 11 mn customers for FY23.

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