Analysts are changing top-line and bottom-line forecasts, with most bullish analysts forecasting 32% and 74% year-over-year (YoY) growth, respectively.
Bajaj Finance was previously updated quarterly, with assets under management (AUM) growing 26% year-on-year and QoQ 8.6%, well above expectations at Rs 1,81,300. The addition of new loans was Rs 740,000, compared to Rs 633,000 for QoQ.
“NII is expected to rise 33% year-on-year to Rs 5,700. NIM is expected to rise due to strong growth in both consumer and mortgage markets,” said an analyst at ICICI direct. Says.
“Management has shown that the NPA Book was not adversely affected in the third quarter of 2010, so the allowance is expected to be kept at Rs 1,364. Because the C / I ratio is controlled, After-tax profit (PAT) is estimated to be 1,780 rupees, up 55% year-on-year. ”
In the September quarter, Bajaj Finance reported a significant increase in net income of 53.48% year-on-year. Net interest income (NII) for the quarter was up 28% to Rs 5,335.
Prabhudas Lilladher said it was the least bullish on Bajaj Finance’s earnings, but that NII is likely to decline in sequence. We expect continuous loan growth to be healthy, but margins to decline.
“Pre-provisioning operating profit (PPOP) remains at a low level of QoQ. Bajaj Finance is strong in both liquidity and provisioning buffers, so reserves are reduced. It will improve. Relieving asset quality pressures. Credit costs will fall as both liquidity and provisioning buffers remain high. ”
Earnings growth was curtailed last year as the company chose to maintain asset quality and focused on lower asset growth and increased provisions. However, this year the default threat has diminished and the company is expected to make significant strides.
Phillip Capital said the execution rate of new customer acquisition has returned to pre-Covid levels. He added that the quality of assets remains stable as the impact of NPA recognition criteria is not expected.
Bajaj Finance Q3: Bajaj Finance Q3 Results Preview: Analysts Expect Strong Profit Growth and Stable Asset Quality
https://economictimes.indiatimes.com/markets/stocks/news/bajaj-finance-q3-results-preview-analysts-expect-strong-profit-growth-stable-asset-quality/articleshow/88950304.cms Bajaj Finance Q3: Bajaj Finance Q3 Results Preview: Analysts Expect Strong Profit Growth and Stable Asset Quality