Bajaj Finance Q4 Results: Consolidated PAT Surges 21%

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Synopsis:

Bajaj Finance Limited has been a key player in India's financial landscape. The lender bank has unveiled an impressive Q4 result and FY24 finances. Amidst challenges, the company saw significant growth, with AUM soaring by 34% to ₹330,615 crore and net interest income jumping by 28% to ₹8,013 crore. Despite a slight decrease in operating expenses, net total income surged by 25% to ₹9,714 crore, showcasing robust profitability. Notably, new loans booked reached 7.87 million, albeit slightly lower due to RBI restrictions. With a growing customer base of 83.64 million and an expanding network, Bajaj Finance remains poised for continued success in the evolving financial landscape.

Data Points:

  1. Q4 Consolidated PAT: ₹3,825 crore
  2. FY24 Consolidated PAT: ₹14,451 crore
  3. Q4 Net interest income: ₹8,013; Up by 28% 
  4. FY24 AUM: ₹330,615 crore; Up by 34% 

Introduction

Bajaj Finance Limited, a subsidiary of Bajaj FinservLimited., is a deposit-taking Non-Banking Financial Company (NBFC-D).  Authorised by the Reserve Bank of India (RBI), BFL is categorised as an NBFC-Investment and Credit Company (NBFC-ICC). The BFL Board of Directors considered and approved the financial results for the last quarter and the financial year that ended on 31 March 2024. The Bajaj Finance Q4 results show a 21% increase in Q4 FY24 PAT (Profit After Tax), which is a jump from ₹3,158 crores in FY23 to ₹3,825 crores in FY24. The Board of Directors recommended a dividend on equity shares at the rate of ₹36 per share of face value of Rs. 2 each for the financial year ending 31 March 2024. 

ExploreBajaj Finance Share Price

Bajaj Finance Q4 Results: 5 Key Financial Highlights

  1. Delivered AUM, Assets Under Management, growth of ₹19,647 crore in Q4. Overall, the AUM surged by 34%, from ₹247,379 crore in FY 2023 to ₹330,615 in FY 2024.
  2. In FY24 Q4, the net interest income swelled by 28%, reaching ₹8,013 crore compared to ₹6,254 crore recorded in the same quarter in FY23.
  3. The operating expenses to net total income for Q4 FY24 stood at 34%, slightly down from 34.2% recorded in Q4 FY23.
  4. In FY24 Q4, the net total income saw a significant increase of 25%, rising to ₹9,714 crore compared to ₹7,775 crore recorded in FY23 same quarter.
  5. PPOP (Pre-provisioning operating profit) in Q4 experienced a notable growth of 25%, reaching ₹6,412 crore compared to ₹5,118 crore in FY23 Q4.

Additional Read: 129 Indian Companies to Release Q4 Results

Bajaj Finance Q4 Results: Profitability Analysis

The significant growth in Assets Under Management (AUM), contributed to a 34% rise in AUM, reaching ₹330,615 crore by the end of Q4, compared to ₹247,379 crore at the end of FY 2023. Additionally, BFL recorded a 4% increase in new loans booked, totalling 7.87 million in Q4 FY24, compared to 7.56 million in the same quarter in the last financial year. 

The new loans booked were slightly lower by approximately 0.8 million in Q4 and 1.2 million in FY24 due to restrictions imposed by the RBI on sanctioning and disbursing loans under the 'eCOM' and 'Insta EMI Card' schemes.

Additional Read: Quarterly Results

Bajaj Finance Q4 Results: Major Financial Metrics (₹ in crore)

Consistent Growth

Bajaj Finance Limited, India's largest non-banking lender, showcased strong performance across multiple fronts during the fourth quarter of FY2024. This includes Assets Under Management (AUM), customer acquisition, portfolio metrics, and operational efficiencies. Certain challenges persisted with elevated loan losses in Rural B2C segments and ongoing impacts of regulatory restrictions. 

Notably, the quarter witnessed remarkable achievements, with a substantial increase in AUM and the acquisition of 78.7 million new loans. Additionally, in Q4, BFL added 3.23 million new customers to the franchise. Their customer franchise now stands at 83.64 million. The cross-sell franchise crossed a milestone of 50 million and stood at 50.75 million. 

From January to March, BFL added 53 new locations and 7.7K distribution points to its robust network. In all, the lender now functions at 4,145 locations. As of 31 March 2024, there are over 1.9 lakh active distribution points.

Additional Read: Annual Results

Segment Strength

Let us take a quick look at the various segments under Bajaj Finance Limited:

Bajaj Housing Finance Limited (BHFL)

  • AUM up 32% at ₹91,370 crore against ₹69,228 crore (31 March 2023)
  • Home loans AUM up by 24%
  • Loan against property up by 23%
  • Lease rental discounting up by 57%

Bajaj Financial Securities Limited (BFSL)

  • Margin Trading Finance AUM up by 259% at ₹3,817 crores (31 March 2024) as against ₹ 1,064 crores as of 31 March 2023.
  • 43,000 customers added to its franchise in Q4
  • Net total income rose to ₹91 crore in Q4 FY24 as against ₹37 crore in the same quarter last FY.
  •  PAT recorded at ₹22 crore in Q4 FY24 as against ₹3 crore in Q4 FY23.

What the Future Holds for Bajaj Finance?

As we look ahead to the future of Bajaj Finance, we are guided by a well-established long-term vision that encompasses various financial metrics such as AUM growth, profit growth, GNPA, NNPA, ROA, and ROE. The company saw a big 34% increase in its combined AUM in FY 24. It has clear plans for long-term AUM growth. For FY25, it predicts a growth of 26-28%, boosted by new secure businesses introduced in FY24 like LAP, new car financing, and tractor finance.

BFL is hopeful about FY25 and expects profit growth to be stronger towards the end of the year. The lender also anticipates a slowdown in Net Interest Margin (NIM) during the first half of FY2025. 

In FY24, the company welcomed an impressive 14.5 million new customers to its franchise. Looking forward, BFL is confident to maintain this momentum, aiming to add 12-14 million customers in FY25 as well.

Conclusion

Significant enhancements have been made to the Bajaj Finserv App and Web platforms, resulting in expanded product offerings, services, and new features. As a result of these efforts, the Bajaj Finserv App now boasts a user base of 52.41 million, marking a significant milestone in their digital ecosystem.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Frequently Asked Questions

As per the Bajaj Finance Q4 results, does BFL show any increase in its net income?

Answer Field

In Q4, BFL’s Net total income surged by 25% to ₹9,714 crore as against ₹ 7,775 crore in Q4 FY23.

What was the reason for a drop in BFL’s Profit Before Tax?

Answer Field

In the fourth quarter of FY 20, BFL’s consolidated profit before tax grew by 20% to ₹ 5,105. However, the profit before tax for Q4 witnessed a 4% decline. As per BFL, the decline was due to regulatory restrictions on sanction and disbursal of loans under ‘eCOM’ and ‘Insta EMI Card’. The Company has implemented necessary adjustments in compliance with the regulatory restrictions imposed by the RBI and has officially requested the RBI to review and lift these restrictions.

As per the Bajaj Finance Q4 results, how did the subsidiary Bajaj Housing Finance Limited perform?

Answer Field

Assets under management grew by 32% YoY for Bajaj Housing Finance Limited. Its Net interest income increased by 11% YoY. The Net total income saw a YoY surge of 19%.

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