Bajaj Finance Q4 Results: Net profit jumps 30%, Rs 30 per share dividend declared

NBFC major Bajaj Finance revealed its results for the Jan - Mar ‘23 period. Both revenue and profits witnessed yearly growth. Moreover, profits topped the consensus estimates too.

While revenue from operations  for the March quarter came in at Rs 11,359.59 crores, the company clocked a consolidated net profit of Rs 3,157.79 crores. Notably, the profit figure came in much ahead of  the consensus estimate of Rs 2,978 crores.

Meanwhile, the Bajaj Finance share price has been under pressure in recent times. In 2023 so far, the Bajaj Finance share price has declined by almost 8% while over the past year it is down roughly 10%.

So, will the upbeat results drive the Bajaj Finance share price higher? How did Bajaj Finance perform in terms of other parameters like loan growth, net interest income, etc? Let’s try and decode!

Decoding Bajaj Finance Q4 Earnings

Bajaj Finance revenues:

• Bajaj Finance reported revenues of Rs 11,359.59 crores for the Jan - Mar ‘23 period. This denotes a growth of 31.7% from the previous year.
   
• Interest income formed the bulk of the revenues for the NBFC major as at Rs 9,846.90 crores, it formed roughly 87% of the total revenues of the company. The same grew by 33.6% from the prior year.
   
• Fee and commission income came in as the next biggest contributor at Rs 1,144.28 crores (10.1% of the total revenues). Notably, the figure denotes a growth of 30.4% from the prior year.

Bajaj Finance profits: Bajaj Finance’s net profits for the Jan - Mar ‘23 period came in at Rs 3,157.79 crores. This signifies a growth of 30.5% from the prior year.

The company highlighted efficient handling of credit costs and rising customer base as the primary drivers of profit growth in the quarter.

Bajaj Finance AUM: Bajaj Finance reported an Assets under Management (AUM) balance of Rs 2,47,379 crores at the end of the March quarter. This denotes a yearly rise of 25% from the prior year. 

Bajaj Finance customer franchise: The customer base of Bajaj Finance at the end of the March quarter stood at 69.14 million, up 20.1% from the prior year.

Bajaj Finance dividend: Bajaj Finance declared a dividend of Rs 30 per share.

Bajaj Finance earnings: Analyst target price

Morgan Stanley: The renowned global brokerage has an “Overweight” rating on the stock with a price target of Rs 8,000. Upbeat guidance about loan growth and comfortable valuations remain triggers for the Bajaj Finance share price rise in the near term according to the firm.

JPMorgan: The leading brokerage has an “Overweight” rating on the stock with a price target of Rs 9,000. AUM growth and solid asset quality has been cited by the firm as primary drivers that can lead to Bajaj Finance share price growth.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.