Bajaj Finance Q2 Results FY25 reported 13% year-on-year growth in the consolidated net profit. On the Bajaj Finance Q2 result date which was October 22, 2024, the Bajaj Finance share price closed at ₹6,677.90. On October 23, 2024, Bajaj Finance shares closed higher at ₹6,995.80. Let’s get into the details of Bajaj Finserv’s lending business arm Q2 results and past financial performance.
Bajaj Finance Q2 Results FY25: Key Highlights
Bajaj Finance share price has positively reacted to the Q2 results by delivering the returns of 4.77% in the last 1 day (as on October 23, 2024). Here are the key highlights of the consolidated Bajaj Finance Q2 results and their YoY growth:
- Profit After Tax (PAT) at ₹4,014 crores, up 13% from ₹3,551 crores in Q2 FY24
- Profit Before Tax (PBT) at ₹5,401 crores, up 14% from ₹4,758 crores in Q2 FY24
- Assets Under Management (AUM) at ₹3,73,924 crores, up 29% from ₹2,90,264 crores in Q2 FY24
- Return on Equity (ROE) at 19.1%, down from 24.1% in Q2 FY24
- Opex to Net Income at 33.2%, down from 34% in Q2 FY24
- Gross Non-Performing Assets (GNPA) at 1.06%, up from 0.91% in Q2 FY24
- Net Non-Performing Assets (NNPA) at 0.46%, up from 0.31% in Q2 FY24
Here is the summary of the financial performance, as mentioned in the Bajaj Finance results:
| Particulars | Q2 FY25 | Q2 FY24 | YoY Change |
|---|---|---|---|
| New loans booked (No. in million) | 9.69 | 8.53 | 13.60% |
| Customer franchise (No. in million) | 92.09 | 76.56 | 20.28% |
| Assets under management (in ₹ crores) | 3,73,924 | 2,90,264 | 28.82% |
| Net Interest Income | 8,838 | 7,196 | 22.82% |
| Profit after tax (in ₹ crores) | 4,014 | 3,551 | 13.04% |
| Annualized ROA | 4.5% | 5.2% | -13.46% |
| Annualized ROE | 19.1% | 24.1% | -20.75% |
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
Bajaj Finance Q2 Results: Other Metrics
- The overall deposits book grew by 21% YoY to ₹66,131 crores as of September 30, 2024.
- Gross loan losses and provisions were ₹1,934 crores in Q2 FY25.
- Net loan losses and provisions were ₹1,909 crores in Q2 FY25.
- The company added 4,007 employees in the Q2 FY25. The attrition rate was 16.4%.
- The company added 43 new locations and 8,600 distribution points in its network, as mentioned in the Bajaj Finance Q2 results.
- Bajaj Finance (BFL) started the non-Bajaj Auto (BAL) two-wheeler (2W) financing business in June 2022. In the first half of FY25, BFL financed 2,17,000 2-wheelers and 55,000 3-wheelers of BAL.
- According to the Bajaj Finance Q2 results, the company has the highest credit rating of AAA/ Stable for its long-term debt program from CRISIL, ICRA, CARE, and India Ratings as well as A1+ for its short-term debt program.
Bajaj Finance Results: Last 7 Years Growth
Bajaj Finance AUM was grown by a CAGR of 72% from FY18 to FY24. The total income grew by 104%, while profit after tax also rose by a whopping CAGR of 136%.
| Key Financials | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | CAGR (7-year) |
|---|---|---|---|---|---|---|---|---|
| AUM | 3.57 | 17.56 | 32.71 | 38.87 | 53.32 | 69.23 | 91.37 | 72% |
| Total income | 106 | 1,156 | 2,646 | 3,155 | 3,767 | 5,665 | 7,617 | 104% |
| Interest expenses | 47 | 685 | 1,616 | 1,966 | 2,155 | 3,211 | 4,692 | 115% |
| Operating expenses | 44 | 297 | 339 | 329 | 471 | 630 | 703 | 59% |
| Loan losses & provision | 4 | 25 | 124 | 247 | 181 | 124 | 61 | 57% |
| Profit after tax | 10 | 110 | 421 | 453 | 710 | 1,258 | 1,731 | 136% |
*(in ₹ crores)
Conclusion
Bajaj Finance results declared for Q2 in FY25 highlighted that the NBFC has mixed performance with a rise in volumes and AUM. However, the loan losses remained at a high level, which impacted the profit growth and ROA. In the last 1-year, Bajaj Finance share price has delivered a negative return of 10.3% (as on October 23, 2024).
Keep exploring stocks and open demat account with SMC Global Securities. Stay tuned for the upcoming Nifty 50 companies quarterly results.
Reference
https://cms-assets.bajajfinserv.in/is/content/bajajfinance/q2-press-releasepdf-22?scl=1&fmt=pdf
Author: All Content is verified by SMC Global Securities.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
