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Results - Analysis

AUM rises 29%, credit cost remain high

Bajaj Finance

30-Apr-2025, 08:15
Bajaj Finance has continued to post healthy 17% growth in the net profit to Rs 4479.57 crore for the quarter ended March 2025 (Q4FY2025). Income from operations on a consolidated basis increased 24% to Rs 16359.14 crore, while other income jumped 24% to Rs 2109.60 crore. Total income moved up 24% to Rs 18468.74 crore in the quarter ended March 2025. Interest expenses moved up 26% to Rs 6551.98 crore. NII of the company galloped 22% to Rs 9807.16 crore in Q4FY2025.

Operating expenses increased 19% to Rs 3697.25 crore, allowing the operating profit to jump 24% to Rs 8219.51 crore. Depreciation moved up 31% to Rs 252.01 crore, while loan loss provisions increased 78% to Rs 2328.94 crore in Q4FY2025. PBT increased 11% to Rs 5638.56 crore. Effective tax rate declined to 19.5% in Q4FY2025 from 25.1% in Q4FY2024.

Net Profit of the company moved up 19% to Rs 4536.75 crore in the quarter ended March 2025. The share of P&L of associate was at Rs 8.82 crore in Q4FY2025 compared with Rs 3.01 crore in Q4FY2024. The final bottomline of the company increased 17% growth in the net profit to Rs 4479.57 in Q4FY2025.

Book value of the company stood at Rs 1557.4 per share at end March 2025, while adjusted book value stood at Rs 1527.9 per share at end March 2025.

Business highlights

Number of new loans booked in Q4FY25 was at 10.10 million as against 7.87 million in Q4FY24, a growth of 36%. Customer franchise crossed a milestone of 100 million and stood at 101.82 million end March 2025, compared to 83.64 million end March 2024, a growth of 22%. Customer franchise grew by 4.70 million in Q4FY25.

Assets under management (AUM) grew by 26% to Rs 416661 crore end March 2025 from Rs 330615 crore at end March 2024. AUM grew by Rs 18618 crore in Q4FY25.

Net interest income increased by 22% in Q4FY25 to Rs 9807 crore from Rs 8013 crore in Q4FY24

Loan losses and provisions for Q4FY25 was Rs 2329 crore as against Rs 1310 crore in Q4FY24. In Q4FY25, the Company made an additional provision of Rs 359 crore on account of the redevelopment of its ECL model. Excluding this, loan losses and provisions for Q4FY25 amounted to Rs 1970 crore.

Loan losses and provisions to average asset under finance for Q4FY25 was 2.33%. Excluding the additional ECL provision of Rs 359 crore on account of model redevelopment, it was 1.97%.

Profit after tax increased by 19% in Q4FY25 to Rs 4546 crore from Rs 3825 crore in Q4FY24.

During the quarter, the Company re-assessed its income tax position for certain items based on favorable orders of various courts and tribunals. Accordingly, the Company has reversed tax expense for earlier years amounting to Rs 249 crore and reduced the current year`s tax provision by Rs 99 crore, resulting in overall tax reduction of Rs 348 crore in Q4FY25.

Excluding the additional ECL provision on account of model redevelopment and reduction in income tax provision, profit after tax growth was 17%.

Gross NPA and Net NPA end March 2025 stood at 0.96% and 0.44% respectively, as against 0.85% and 0.37% end March 2024. The provisioning coverage ratio on stage 3 assets was 54%.

Capital adequacy ratio (CRAR) (including Tier-II capital) end March 2025 was 21.93%. The Tier-I capital was 21.09%.

The Board of Directors has approved distribution of a special interim dividend of Rs 12 per equity share, from the exceptional gain resulting from the sale of investment in BHFL as part of IPO listing in September 2024. The Board of Directors has recommended a final dividend of Rs 44 per equity share of face value of Rs 2 (2200%) for FY25 (Previous year Rs 36 per equity share of face value of Rs 2 each Le. 1800%).

The Board of Directors has approved, subject to shareholder approval, the sub-division of the face value of shares from Rs 2 to Rs 1 fully paid equity shares, and the issue of 4 fully paid bonus equity shares of face value Rs 1 for every 1 fully paid equity share of face value Rs 1. The bonus issue reflects the Company`s strong financial position, robust reserves, and positive growth outlook.

Bajaj Finance Limited - Q4FY25

Assets under management grew 26% to Rs 308832 crore end March 2025 from Rs 244826 crore end March 2024.

Net interest income increased by 21% in Q4FY25 to Rs 8910 crore from Rs 7340 crore in Q4FY24.

Profit after tax increased by 16% in Q4FY25 to Rs 3940 crore from Rs 3402 crore in Q4FY24.

Gross NPA and Net NPA end March 2025 stood at 1.18% and 0.56% respectively, as against 1.05% and 0.46% end March 2024. The Company has provisioning coverage ratio of 53% on stage 3 assets.

Bajaj Housing Finance - Q4 FY25

Assets under management grew by 26% to Rs 114684 crore end March 2025 from Rs 91370 crore end March 2024.

Net interest income increased by 31 % in Q4FY25 to Rs 823 crore from Rs 629 crore in Q4FY24.

Loan losses and provisions in Q4 FY25 was Rs 30 crore as against Rs 35 crore in Q4FY24.

Profit after tax increased by 54% in Q4FY25 to Rs 587 crore from Rs 381 crore in Q4FY24.

Gross NPA and Net NPA end March 2025 stood at 0.29% and 0.11 % respectively, as against 0.27% and 0.10% end March 2024. BHFL has provisioning coverage ratio of 60% on stage 3 assets.

Bajaj Financial Securities - Q4FY25

BFinsec acquired approximately 71000 customers in Q4FY25. Overall customer franchise stood at approximately 979000 end March 2025. Margin trade financing (MTF) book grew by 18% to Rs 4505 crore end March 2025 from Rs 3817 crore end March 2024.

Net interest income increased by 79% in Q4FY25 to Rs 68 crore from Rs 38 crore in Q4FY24. Net total income increased by 18% in Q4FY25 to Rs 107 crore from Rs 91 crore in Q4FY24.

Profit before tax increased by 77% in Q4FY25 to Rs 46 crore from Rs 26 crore in Q4FY24. Profit after tax increased by 64% in Q4FY25 to Rs 36 crore from Rs 22 crore in Q4FY24.

BFinsec enjoys the highest credit rating of AAA/Stable for its long-term debt programme from CRISIL and A1+ for short-term debt programme from CRISIL and India Ratings.

Financial Performance FY2025:

The company has reported 28%, on yoy basis, increase in its income from operations to Rs 44804.41 crore for the year ended March 2025 (FY2025), while other income of the company surged 30% to Rs 6451.63 crore. Total income advanced 28% to Rs 51256.04 crore. Interest expenses increased 35% to Rs 18218.81 crore. NII of the company increased 23% to Rs 26585.60 crore. Operating expenses moved up 21% to Rs 10347.90 crore, allowing the operating profits to increase 26% to Rs 22689.33 crore for FY2025. Depreciation increased 28% to Rs 628.98 crore, while provisions galloped 70% to Rs 5637.09 crore. PBT moved up 16% to Rs 16423.26 crore. Effective tax rate increased to 25.6% in FY2025 from 25.2% in FY2023. PAT of the company was up 15% to Rs 12224.92 crore in FY2025. The share of P&L of associate was at Rs 8.99 crore in FY2025 compared with Rs 4.63 crore in FY2023. The final bottomline of the company increased 14% growth in the net profit to Rs 12158.25 in FY2025.

Bajaj Finance: Consolidated Results
Particulars	2503 (3)	2403 (3)	Var %	2503 (12)	2403 (12)	Var %
Income from operations	16359.14	13230.07	24	61163.55	48306.60	27
Other Income	2109.60	1701.91	24	8561.23	6675.91	28
Total Income	18468.74	14931.98	24	69724.78	54982.51	27
Interest Expended	6551.98	5217.09	26	24770.79	18724.69	32
Operating Expense	3697.25	3109.85	19	14045.15	11641.87	21
Operating Profits	8219.51	6605.04	24	30908.84	24615.95	26
Depreciation / Amortization	252.01	192.96	31	880.99	683.32	29
Provisions and Write-offs	2328.94	1310.01	78	7966.03	4630.70	72
PBT	5638.56	5102.07	11	22061.82	19301.93	14
Tax Expense	1101.81	1280.55	-14	5300.15	4858.40	9
PAT	4536.75	3821.52	19	16761.67	14443.53	16
Share of P&L of asso.	8.82	3.01	193	17.81	7.64	133
Net Profit	4479.57	3824.53	17	16637.82	14451.17	15
EPS	288.6	246.4	'	268.0	232.8	'
Adj BV (Rs)	1527.9	1221.4	'	1527.9	1221.4	'
* Annualized on current equity of Rs 124.17 crore. Face Value: Rs 2, Figures in Rs crore
Source: Capitaline Corporate Database