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Bajaj Finance Q1 Earnings Preview: Strong profit growth likely

Updated : July 25, 2019 08:43 AM IST

Bajaj Finance will report its June-quarter earnings on Thursday and analysts expect the company to report robust net profit growth this time.

  • A CNBC-TV18 poll suggests that the net interest income (NII) growth will be around 28 percent while net profit is seen up 50 percent on a YoY basis and about 7 percent on a sequential basis.

  • The assets under management (AUM) growth for Bajaj Finance at 41 percent on-year is perhaps the best in the last 11 quarters.

  • The new loans book has grown by 30.5 percent YoY and about 25 percent quarter-on-quarter (QoQ). In Q4 there was a decline in new loans book by almost 14 percent on a sequential basis.

  • The customer base has increased by 30 percent YoY and about 7 percent sequentially. So sustaining the gross non-performing assets (NPA) at current levels of 1.54 percent will be positive.

  • The net interest margin movement will be seen very closely given the fact that the cost of funds has increased for non-banking financial companies (NBFCs).
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