Bajaj Finance Ltd., India's largest non-bank lender, reported a net profit of ₹3,912 crore for the April-June quarter, closely aligning with the CNBC-TV18 poll estimate of ₹3,973.7 crore. This result reflects a 13.8% year-on-year increase in net profit, underscoring the company’s strong financial performance.
Key Financial Highlights:
The Net Interest Income (NII), which represents the core earnings of Bajaj Finance, stood at ₹8,365 crore, slightly below the CNBC-TV18 poll estimate of ₹8,445.1 crore. This marks a 24.5% increase compared to the same quarter last year, indicating robust growth in the company's core lending operations.
Asset Quality:
Bajaj Finance's asset quality remained stable during the quarter, with Gross NPA (Non-Performing Assets) at 0.86%, a marginal increase from 0.85% in the previous quarter. Similarly, Net NPA stood at 0.38%, up slightly from 0.37% in the March quarter. These figures reflect the company's effective management of asset quality despite challenging market conditions.
Market Performance:
Shares of Bajaj Finance ended 2.3% lower on Tuesday, closing at ₹6,728. The stock has declined 8% so far in 2024, reflecting broader market trends and investor sentiment.
Conclusion:
Bajaj Finance’s Q1 results demonstrate solid financial health and operational efficiency, with net profit and NII growth aligning with market expectations. Despite a slight increase in NPAs, the company has maintained a stable asset quality, showcasing its resilience in the non-banking financial sector.
Investors and market analysts will continue to monitor Bajaj Finance's performance closely, particularly its strategies to manage asset quality and sustain growth amid evolving market conditions.
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