Bajaj Finance Shares Jump 5.5% to Hit New High on Strong Q3 Results, 10 Key Takeaways

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Profit growth was aided by a sharp jump in net interest income and improving asset quality. Here are 10 key takeaways from Bajaj Finance Q3 results.

Bajaj Finance Ltd shares gained as much as 5.5% in intraday trade on Wednesday to hit a record high of Rs 4,444 apiece after the lender reported a solid 52% growth in net profit in the third quarter ended December (Q3) compared with a year ago. Profit growth was aided by a sharp jump in net interest income and improving asset quality. Here are 10 key takeaways from Bajaj Finance Q3 results:

1) Profit during the December quarter rose to at Rs 1,614 crore from Rs 1,060 crore in the same period a year ago.

2) Bajaj Finance’s net interest income (NII) shot up 42% year-on-year to Rs 4,537 crore in the third quarter on the back of 13% growth in new loans.

3) Customer franchise increased 24% to 40.38 million as of 31 December 2019 from 32.57 million as of 31 December 2018.

4) Consequently, Bajaj Finance Q3 revenue grew 40.6% year-on-year to Rs 7,011 crore.

5) Assets under management (AUM) for the quarter grew 35% year-on-year to Rs 1.45 lakh crore in the December quarter.

6) Gross non-performing asset (NPA) ratio was unchanged in the December quarter compared with the previous quarter at 1.61%, but net NPA increased 5 basis points sequentially to 0.7% during the period.

7) Loan losses and provisions for the December quarter (expected credit loss) was Rs 831 crore compared with Rs 451 crore in the year-ago quarter and Rs 594 crore in the previous quarter. Bajaj Finance made an accelerated provision of Rs 85 crore in its loan against securities portfolio. Adjusted for this, loan losses and provisions (expected credit loss) for Q3 was Rs 746 crore.

8) Total slippages for the December quarter at Rs 936 crore, up 19% from Rs 786 crore reported in the previous quarter.

9) Bajaj Finance said it has been witnessing some uptick in the consumption category since December and the same has continued in January so far. “Republic Day sale momentum was strong,” it said.

10) Bajaj Finance said it added 182 new locations in the December quarter, taking its total geographic presence to 2,179 locations in India as of 31 December.