Net interest income for the reporting June quarter is likely to grow 26% year-on-year, according to an average estimate of four brokerages. Profit after tax (PAT), meanwhile, is seen rising 16% year-on-year.
The company’s new loans booked during the first quarter grew by 10% in the first quarter while the assets under management (AUM) jumped 30% year-on-year in the same period.
![Bajaj Finance-quarterly-results-trend Bajaj Finance-quarterly-results-trend](https://img.etimg.com/photo/msid-42031747/et-logo.jpg)
Key monitorables in the earnings card include commentary on sustenance of growth momentum and two progress on LRS.
In the preceding March quarter, Bajaj Finance reported a consolidated net profit of Rs 3,824 crore, which was up by 21% year-on-year and the net interest income increased 34% year-on-year to Rs 13,320 crore.
Here’s what analysts expect from Bajaj Finance’s Q1
Axis Securities
AUM Growth has remained healthy at 7% quarter-on-quarter. Margin compression is likely to be slower despite increase in CoF, C-I. Ratio to remain steady. Credit costs to be contained within management guidance and asset quality expected to remain stable quarter-on-quarter.
Kotak Equities
Bajaj Finance has reported 7% quarter-on-quarter growth in loan book (6-9% quarter-on-quarter in the past four quarters) driving 31% year-on-year growth in AUM. NIM will likely remain stable at 10% as seasonal inch-up in yields (higher CD business) offsets rise in cost of funds.
We expect cost-to-average AUM ratio to remain stable at 4.1% (4.1% in 4QFY24 and 4.4% in 1QFY24). We model moderate increase in credit costs to 1.7% for 1QFY25E (1.5-1.7% in the previous four quarters), a tad lower than management’s guidance of 1.75-1.85%.
Motilal Oswal
Bajaj Finance is likely to report AUM growth of 30% year-on-year/ 7% quarter-on-quarter. Opex is likely to remain stable with CIR at 34%. Margin is likely to contract 10 bps quarter-on-quarter. Credit costs are expected to increase 5bps quarter-on-quarter to 1.7%.
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