The shares of Bajaj Finance are trading 2.6 percent lower on NSE after its reported its financial results for first quarter of FY24. The stock is trading at Rs 7,399, giving up all its gains for this week.
The Non Banking Financial Company (NBFC) reported 27 percent higher year on year net interest income at Rs 6,718 crore, compared with CNBC-TV18 poll of Rs 6,997 crore. The net profits during the quarter are 32 percent higher year on year at Rs 3,437 crore, while the CNBC-TV18 poll was at Rs 3,368 crore.
The number of new loans booked during the quarter grew sharp 34 percent year on year to 9.94 million and is highest ever in any quarter. The gross non performing assets is at 0.87 percent versus 0.94 percent quarter on quarter. The net non performing assets is at 0.31 percent versus 0.34 percent quarter on quarter.
The loan losses and provisions have also risen this quarter by 32 percent year on year to Rs 995 crore versus Rs 755 crore in the first quarter of FY23.
The assets under management rose 32 percent to Rs 2.7 lakh crore versus Rs 2.04 lakh crore in the corresponding quarter of last year.
In the start of July, this NBFC reported strong first quarter business update, after which the stock rose 7 percent. The customer base rose 21 percent year on year and 5.6 percent quarter on quarter. The average ticket is also 9 percent higher year on year at Rs 37,003.
Change in guidance
The NBFC has changed its long term guidance with GNPA ratio now expected at 1.2 to 1.4 percent from 1.4 to 1.7 percent. The NNPA Ratio guidance is now at 0.4 to 0.5 percent from 0.4 to 0.7 percent earlier. The Return on assets are expected at 4.6 to 4.8 percent compared with earlier guidance of 4 to 4.5 percent. The Return on equity new guidance is 21 to 23 percent compared with 19 to 21 percent. The change in guidance is what has disappointed the Street.
The stock has already rallied 13 percent since start of CY2023.
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