Bajaj Finance Expected to Report Strong Increase in Profit and Interest Income
Bajaj Finance is anticipated to release its quarterly earnings report, with analysts expecting a significant rise in net profit and net interest income. It is projected that the company’s net profit will increase by over 20% year-on-year, while net interest income is expected to rise by 30-35%. Although provisions are anticipated to increase, the net interest margin is predicted to remain in the range of 10.1% to 10.5%.
Axis Securities Estimates a Substantial YoY Rise in Net Profit and NII
According to Axis Securities, Bajaj Finance is likely to report a 26.1% year-on-year increase in net profit, amounting to Rs 3,748 crore. The net interest income is expected to jump by 29.4% YoY to Rs 7,661 crore. Provisions are projected to be higher than the previous quarter and the same quarter last year, standing at Rs 1,156 crore.
Jefferies Expects a 21% YoY Rise in Profit and a 25% Jump in NII
Jefferies predicts that Bajaj Finance Ltd will report a 21% year-on-year rise in profit for the quarter, amounting to Rs 3,604 crore. The net interest income is expected to increase by 25% YoY to Rs 7,427.90 crore. Pre-provision operating profit is estimated to go up by 24%, reaching Rs 4,852.90 crore.
Bajaj Finance Exceeds Jefferies’ Estimates with Strong AUM Growth
In its provisional update, Bajaj Finance announced a 35% growth in assets under management (AUM), surpassing Jefferies’ estimate of 31% for the fiscal year 2024. The company also experienced strong growth in its customer base, with a 22% YoY increase, and a 26% YoY growth in new loans booked. Deposits grew by 35% YoY.
Nomura India Projects Profit and NII for Bajaj Finance
According to Nomura India, Bajaj Finance is expected to report a profit of Rs 3,760 crore and a net interest income of Rs 7,560 crore for the quarter. The net interest margin is estimated to be 10.5%, and the credit cost is projected to be 1.5%. The return on asset is anticipated to be 4.8%, while the return on equity is expected to reach 24%.
In summary, Bajaj Finance is expected to report strong growth in net profit and net interest income for the quarter. The company’s AUM, customer base, and deposits have all experienced robust growth, surpassing analysts’ expectations. However, provisions are expected to increase, and the net interest margin may decline slightly.
Analyst comment
Positive news: Bajaj Finance is expected to report a strong increase in profit and interest income, surpassing analysts’ expectations. The company’s assets under management, customer base, and deposits have also experienced robust growth.
As an analyst, I anticipate that the market will react positively to this news, with Bajaj Finance’s stock price likely to rise. The strong financial performance and growth indicators are indicative of the company’s solid performance and market strength.
