Bajaj Finance Q3 Results Review – Focus On Margin Protection Unabated; Growth Runway Strong: Axis Securities
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Bajaj Finance Ltd. reported a strong assets under management growth of 27/6% YoY. The management has indicated that as the contribution of the business-to-business business continues to shrink, the effect of seasonality (as seen historically in Q1 and Q3) will no longer be visible.
Operational metrics remained healthy despite stiff competition with the company adding 3.1 million customers (up 21/19% YoY/QoQ) and booking 7.8 million loans (5/15% YoY/QoQ) during Q3 FY23.
Supported by stable net interest margins and healthy AUM growth, net interest income grew by 25/7% YoY/QoQ.
Even as Bajaj Finance continues to invest in building a franchise, the initial signs of operating leverage emerging are visible from the improvement in the cost-income ratio to 34.7% (down 120 bps QoQ/flat YoY). The management expects opex ratios to improve going into FY24.
Pre-provision operating profit growth remained strong at 24/8% YoY/QoQ.
Credit costs came in within management’s guided range, aiding earnings growth of 40/7% YoY/QoQ. Asset quality remained stable during Q3 FY23.
Click on the attachment to read the full report:
More Research Reports On Bajaj Finance’s Q3 FY23 Results Review
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
More Economy Business News Updates of Today Check Below
Today News || Business Today || World News || Headlines Today || Health || Technology News || Education News