Bajaj Finance reported a 17% growth in consolidated net profit for the third quarter of FY25 at ₹4,247 crore as against ₹3,639 crore in the year ago period.
Bajaj Finance’s stock rose more than 4% in early trading on Thursday after the business released its third-quarter earnings. Bajaj Finance shares rose 4.52% to ₹8,108.90 on the BSE.
Bajaj Finance, India’s largest NBFC, announced a 17% increase in consolidated net profit for the third quarter of FY25, reaching ₹4,247 crore from ₹3,639 crore in the previous year.
In Q3FY24, net interest income (NII) increased by 23% to ₹9,382 crore from 7,655 crore year on year (YoY).
Bajaj Finance’s assets under management (AUM) increased by 28% to ₹398,043 crore as of December 31, 2024, from ₹310,968 crore in December 2023. The number of new loans booked in Q3FY25 was the largest ever, at 12.06 million, up 22% from 9.86 million in Q3FY24.
The NBFC’s gross non-performing assets (GNPA) increased to 1.12% in Q3FY25, up from 0.95% the previous year, while net NPA increased to 0.48% from 0.37%. The provisioning coverage ratio for stage 3 assets was 57%.
Provisions for loan losses grew to ₹2,043 crore in Q3FY25 from ₹1,248 crore the previous year. Loan losses and provisions accounted for 2.16% of average assets under finance.
Should you buy Bajaj Finance shares?
Bajaj Finance’s PAT of ₹43 billion exceeded the consensus and our projections by around 6% and 3%, respectively. Emkay Global Financial Services Ltd.’s Senior Research Analyst, Avinash Singh, stated that credit costs remained stable at ~2.1% sequentially. Management anticipates improvement in Q4 due to improved collection efficiency in December 2024 and January 2025. Full-year FY25 guidance remains at 2-2.1%.
Emkay Global raised its FY25-27 earnings expectations by ~2.5%, citing excellent financials (~4% RoA, over-20% RoE, and sustained earnings growth above 20%) and Q3 developments and management insights.
