Bajaj Finance Q3 Results Review - Strong Growth Momentum; Asset Quality Pristine: Prabhudas Lilladher

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. .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. .Click on the attachment to read the full report:.More Research Reports On Bajaj Finance's Q3 FY23 Results Review.On Track For Better Earnings Momentum: Motilal OswalStable Margin, Lower Cost Aid Profitability: Nirmal BangSustainable Performance To Aid Valuation: ICICI DirectBajaj Finance, DLF Q3 Results Reviews: HDFC Securities.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 - Strong Growth Momentum; Asset Quality Pristine: Prabhudas Lilladher

In Q3, Bajaj Finance reported its highest ever customer franchise addition in a quarter- even bettering record set in Q1 FY23.

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