Brokerages have trimmed FY25 earnings estimates for Bajaj Finance Ltd., citing moderating net interest margin, a decline in fee income, and elevated credit costs, even as the NBFC reported an inline net profit in the fourth quarter.
Bajaj Finance stock fell as much as 5.79% on Friday morning to Rs 6,872.70 apiece on the NSE. It was trading 5.48% lower at Rs 6,895 apiece, compared to a 0.45% advance in the benchmark Nifty 50 as of 9:22 a.m.
The company’s standalone net profit rose 20% year-on-year to Rs 3,402 crore for the quarter ended March 2024, according to an exchange filing on Thursday. Analysts polled by Bloomberg had predicted a net profit of Rs 3,546 crore.
The management’s guidance for FY25 is below its long-term guidance on multiple metrics such as AUM growth, credit costs, RoA, and RoE. Bajaj Finance’s key product segments have been the secular growth segments, according to Motilal Oswal Financial Services.
“However, its foray into multiple newer products such as cars, tractors, CVs, and potentially MFI could (in the future) make its growth vulnerable to cyclicality despite having a well-diversified product mix,” the research firm said in an April 16 note.
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Total income rises 31% to Rs 12,764 crore (YoY).
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Gross NPA stage 3 at 1.05%.
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Net NPA stage 3 at 0.46%.
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Net profit up 20% at Rs 3,402 crore (YoY).
Bajaj Finance’s net interest income surged 29% in Q4 to Rs 7,340 crore, as compared with the same period last year. The total revenue from operations increased 31.3% to Rs 12,760 crore in the quarter ended March, from the corresponding period a year ago. Other income for the lender rose 107% to Rs 3.94 crore.
