- 28 Jul 2022
- ICICIdirect Research
BAJAJ FINANCE POSTED Q1FY23 NUMBERS
BAJFINANCE - 7311 Change: 128.90 (1.79 %)News: Bajaj Finance reported stellar NII growth of 48%YoY to Rs6635 crore was higher than estimates. Overall AUM growth of 28% YoY and sequential sharp GNPA improvement add to earnings growth momentum with PAT growth of 159% YoY and 7%QoQ to Rs2596 crore. In line with guidance C/I ratio is inching up gradually to 35.9% from 34.6% QoQ. With the deep investments being committed to Omnichannel, opex to NII to remain elevated at 35-36% for FY23. GNPA & NNPA stood (at pre-covid levels) at 1.25% and 0.51% as of Q1FY23 vs 1.60% and 0.68% as of Q4FY22. AUM growth also gained traction as Core AUM was up 31% YoY at Rs 2,04,018 crore primarily driven by Consumer B2B and Rural consumer B2B. Customer franchise stood at 60.30 mn as of Q1FY23. BAF is comfortable to add 9-10mn new customers in FY23. Led by strong ALM, management expects the impact of recent interest rate hikes on cost of funds will be gradual.
Views: BAF is well on track to get transformed into an adaptable new age fin-tech. Improvement in asset quality with high profits enabling provisions & w/off under check are positive.
Impact: Positive.