Bajaj Finance posts stellar Q4FY22 resultsBAJFINANCE - 5770 Change: 62.60 (1.10 %)
News: Bajaj Finance posted stellar earnings growth. Lower provisions boost PAT, inline quarter. NII grew of 30% YoY and 12.5% QoQ to ₹ 6068 crore and PAT growth of 80% YoY to ₹2420 crore. Costs were under control and stable sequentially with C/I ratio at 34.6% from 34.7% QoQ. With the deep investments being committed to omnichannel strategy the Company expects Opex to NII to remain elevated for FY23. Provisions for Q3FY22 declined 33% QoQ and 44% YoY to ₹ 702 crore, mainly due to improvement in asset quality. Asset quality was healthy as GNPA and NNPA declined by 13 bps and 10 bps QoQ to 1.6% and 0.68% respectively and these key ratios are now back to pre-covid levels. AUM growth was 9% QoQ and 29% YoY to ₹ 197500 crore, which was primarily driven by 27% YoY growth in Consumer segment.
Views: We believe strong results symbolise balance sheet strength and company’s ability to bounce back with growth, NIMs and bottom line all levers improving every quarter. since the fin-tech story is embedded in this business, valuations should stay at premium. The digital web platform, similar to app is the new strategy in FY23.