Even as the NBFC reported inline net profit in the fourth quarter, the brokerage cut Bajaj Finance's FY25 profit forecast citing subdued net interest margin, lower fee income and higher credit costs.
Bajaj Finance share price fell by up to 5.79 per cent to Rs 6,872.70 per share on NSE on Friday morning. As of 9:22 am, the benchmark Nifty 50 was trading 5.48 per cent lower at Rs 6,895 per piece while the benchmark Nifty 50 was up 0.45 per cent.
The company's standalone net profit for the quarter ended March 2024 rose 20% year-on-year to Rs 3.42 billion, according to a stock exchange filing on Thursday. Analysts surveyed by Bloomberg had expected net profit to be 3,546 million rupees.
Management's guidance for FY25 is below long-term guidance on multiple metrics including asset growth, credit costs, RoA and RoE. Bajaj Finance's main product segment is the long-term growth segment, Motilal Oswal Financial Services said.
“However, despite a well-diversified product mix with forays into multiple new products such as cars, tractors, CVs and potentially MFIs, (in the future) the company's growth will be limited by cyclical effects.” “This may make them more susceptible to the virus,” the research firm said in an April 16 paper. Note.
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Total revenue grew 31% to Rs 12,764 crore (YoY).
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Gross NPA Stage 3 is 1.05%.
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Net NPA stage 3 is 0.46%.
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Net profit increased by 20% to Rs 3,402 crore (YoY).
Bajaj Finance's net interest income rose 29% year-on-year to Rs 7.34 billion in the fourth quarter. Total operating revenue for the quarter ended March rose 31.3% year-on-year to Rs 12,760 crore. The lender's other income rose 107% to Rs 3.94 billion.
