Net interest income for the reporting June quarter is likely to grow 26% year-on-year, according to an average estimate of four brokerages. Profit after tax (PAT), meanwhile, is seen rising 16% year-on-year.
The company’s new loans booked during the first quarter grew by 10% in the first quarter while the assets under management (AUM) jumped 30% year-on-year in the same period.
Key monitorables in the earnings card include commentary on sustenance of growth momentum and two progress on LRS.
In the preceding March quarter, Bajaj Finance reported a consolidated net profit of Rs 3,824 crore, which was up by 21% year-on-year and the net interest income increased 34% year-on-year to Rs 13,320 crore.
Here’s what analysts expect from Bajaj Finance’s Q1
Axis Securities
AUM Growth has remained healthy at 7% quarter-on-quarter. Margin compression is likely to be slower despite increase in CoF, C-I. Ratio to remain steady. Credit costs to be contained within management guidance and asset quality expected to remain stable quarter-on-quarter.
Kotak Equities
Bajaj Finance has reported 7% quarter-on-quarter growth in loan book (6-9% quarter-on-quarter in the past four quarters) driving 31% year-on-year growth in AUM. NIM will likely remain stable at 10% as seasonal inch-up in yields (higher CD business) offsets rise in cost of funds.
We expect cost-to-average AUM ratio to remain stable at 4.1% (4.1% in 4QFY24 and 4.4% in 1QFY24). We model moderate increase in credit costs to 1.7% for 1QFY25E (1.5-1.7% in the previous four quarters), a tad lower than management’s guidance of 1.75-1.85%.
Motilal Oswal
Bajaj Finance is likely to report AUM growth of 30% year-on-year/ 7% quarter-on-quarter. Opex is likely to remain stable with CIR at 34%. Margin is likely to contract 10 bps quarter-on-quarter. Credit costs are expected to increase 5bps quarter-on-quarter to 1.7%.
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