Bajaj Finance Q2 FY25 Results Preview: PAT to likely grow 13.3%; AUM may expand 30%

Bajaj Finance- the country's leading non-banking finance company (NBFC) is slated to report its July-September earnings on October 22, 2024 (Tuesday). Zee Business analysts estimate the company's consolidated profit after tax (PAT) to log 13.3 per cent growth on-year during the quarter to Rs 4,021 crore. In the corresponding quarter last year, the NBFC major reported PAT at Rs 3,550.8 crore.

As per research inputs, fee income will likely boost profitability at the company. Last year in the same quarter, fees and commission income stood at Rs 1,312 crore.

The company's consolidated net interest income (NII), or the difference between the interest earned and the interest paid, is estimated to rise 23 per cent year-on-year (YoY) to Rs 8,854.9 crore. The NII stood at Rs 7,197 crore in Q2FY24.

Furthermore, assets under management (AUM) at the company during the review period are expected to climb 30 per cent on-year. The NBFC as of June 30, 2024 reported AUM at Rs 3,54,192 crore.

Also, credit cost at the company is anticipated to log improvement during the July-September quarter.

Key monitorable

The management's commentary on margins will be watched out for.

Bajaj Finance Q1FY25 results

In Q1, the company reported a consolidated net profit of Rs 3,912 crore. The number of new loans booked during the quarter grew by 10 per cent to 10.97 million as against 9.94 million in Q1FY24.

Importantly, the company resumed sanction and disbursal of loans under 'eCOM' and 'lnsta EMI Card' and issuance of EMI cards after the RBI removed the restrictions on these businesses on 2 May 2024.

Net interest income or NII increased by 25 per cent in Q1FY25 to around Rs 8,365 crore from Rs 6,717 crore in Q1 FY24. Net total income at the company also increased by 24 per cent in Q1FY25 to Rs 10,418 crore from Rs 8,397 crore in Q1FY24.

Bajaj Finance share price 

Ahead of its results tomorrow, shares of Bajaj Finance ended with a cut of 1.6 per cent at Rs 6,784.5 apiece on the BSE. The stock over the past one year has underperformed and delivered a negative return of 12.7 per cent.

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