Bajaj Finance Q4 Results Review - Inline, Strong RoA Delivery To Continue: Axis Securities

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.Healthy operating metrics:Bajaj Finance Ltd. added 3.23 million customers (+5/-16% YoY/QoQ) during the quarter versus 3.1/3.9 million customer YoY/QoQ, taking the total customer base to 83.64 million customers (+21/4% YoY/QoQ). The company booked ~7.9 million loans during the qtr. (+4/-20% YoY/QoQ). The new loans booked during the quarter were lower by approximately 0.8 million on account of the restrictions placed by the RBI, on sanction and disbursal of loans under 'eCOM' and 'lnsta EMI Card'..Encouraging operational performance: Net interest income grew by 28/5% YoY/QoQ, largely in line with our expectation, aided by assets under management growth of 34/6% YoY/QoQ while margins (calculated on average assets under management) contracted by ~19 bps QoQ. Non-interest income grew by 12/4% YoY/QoQ, with healthy growth in fee income (~1.7% of average AUM, growing at +16/3% YoY/QoQ). Opex grew by 25/5% YoY and cost-income ratio stood flat QoQ at ~34% QoQ. Pre- provision operating profit grew by 25/4% YoY/QoQ. Credit costs remained steady at 1.63% vs 1.66% QoQ. Earnings growth was at 21/5% YoY/QoQ..Asset Quality Steady: Gross/net non-performing asset stood at 0.85/0.37% versus 0.95/0.37% QoQ. Provision coverage ratio stood at 57%. Most segment ex-rural B2C continue to report healthy asset quality trends. Hence, the management has continued to adopt a cautious approach in growing the Rural B2C book..Click on the attachment to read the full report:.Bajaj Finance, Macrotech Developers, IndusInd Bank, Cyient, Zensar Q4 Results Review: HDFC Securities .DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bajaj Finance Q4 Results Review - Inline, Strong RoA Delivery To Continue: Axis Securities

Apart from the rural B2C business, all other segments continue to exhibit healthy asset quality

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