Bajaj Finance, a non-banking finance company, is scheduled to reveal its financial results for the second quarter of FY24 on October 17, 2023. Analysts anticipate a substantial increase in Q2FY24 net profit, emphasizing stable asset quality and robust loan growth. Projections suggest that Bajaj Finance’s net profit for the quarter ending September 2023 is poised to surge approximately 34% year-on-year (YoY) to ₹3,725 crore. Net interest income (NII) is expected to witness a growth of over 29%, reaching ₹7,165 crore, up from ₹5,537 crore a year earlier.
Estimates from Motilal Oswal Financial Services suggest that Bajaj Finance’s net profit in Q2FY24 is expected to rise by 31% YoY to ₹3,650 crore. Concurrently, net interest income (NII) is projected to experience a YoY growth of 30%, reaching ₹7,200 crore. The brokerage anticipates an overall net income growth of 26% YoY to ₹8,850 crore. It is crucial to note that these figures are estimates, and for the most accurate and current information, it is recommended to refer to official announcements and reports issued by Bajaj Finance or seek guidance from financial experts closely monitoring the company’s real-time performance.
Approximately thirty-one companies will release their September quarter results today. Investors are focused on giants like Bajaj Finance, Tata Elxsi, and L&T Technology Services among the 31. The companies to announce Q2 results today include Artemis Electricals And Projects Ltd, Atharv Enterprises Ltd, Bajaj Finance Limited, Benares Hotels Ltd, Can Fin Homes Ltd, Cie Automotive India Ltd, Cosyn Ltd, Duncan Engineering Ltd, Eimco Elecon (India) Ltd, Happiest Minds Technologies Ltd, Hathway Bhawani Cabletel & Datacom Ltd, Himadri Speciality Chemical Ltd, Huhtamaki India Ltd, ICICI Prudential Life Insurance Company Ltd, IIFL Securities Ltd, etc.
In the second quarter of FY24, Non-Banking Financial Companies (NBFCs) are anticipated to demonstrate robust earnings growth of 42% year-on-year (YoY), propelled by a 25% YoY surge in Net Interest Income (NII) and a 29% YoY expansion in Pre-Provision Operating Profit (PPOP). Most NBFCs are expected to undergo sequential Net Interest Margin (NIM) compression, with vehicle financiers and diversified NBFCs likely to be more significantly affected. While affordable Housing Finance Companies (HFCs) might experience some compression, JM Financial, a brokerage firm, predicts a relatively modest impact on NBFC-MFIs (Microfinance Institutions) due to the benefits of lending rate increases.
The asset quality is projected to display a steady trend, primarily influenced by consistently lower credit costs. However, the impact of floods is expected to be seen for NBFC-MFIs. Overall, a strong earnings performance is expected across diversified NBFCs, NBFC-MFIs, and affordable HFCs, with vehicle financiers following suit. Bajaj Finance’s shares have demonstrated positive momentum, increasing by 8% in the last month and 7% in the last three months. Year-to-date (YTD), the stock has shown substantial growth, rising by more than 23%. Over the past three years, Bajaj Finance’s share price has surged by over 148%. Investors and stakeholders are likely to closely monitor these trends and performance indicators for insights into the overall health and growth prospects of Bajaj Finance and the broader NBFC sector.