Bajaj Housing Finance Q2 Results: Net Profit Surges 21% YoY, NII Rises 13%

Bajaj Housing Finance, a subsidiary of Bajaj Finance, announced its Q2 financial results for the quarter ended September 2024. The company reported a 21% YoY jump in net profit, reaching ₹546 crore, up from ₹451 crore in the same quarter last year. It also reported an increase of 26% in its revenue from operations to ₹2,410 crore, compared to ₹1,911 crore in the corresponding quarter of the previous year. Net interest income (NII) increased by 13% to ₹713 crore, up from ₹632 crore in the same quarter last year. This is the company's first earnings report since its IPO in September 2024.

Quick Insights:

●    Revenue: ₹2,410 crore, up by 26% YoY.
●    Net Profit: ₹546 crore, increased by 21% compared to last year.
●    Management's Take: Strong growth driven by AUM growth of 26% YoY, with absolute AUM growth consistent over the past two quarters. Outlook remains positive.
●    Stock Reaction: Shares surged by 4% to a day's high of ₹142.30 on October 22, following the Q2 results announcement.

Management Commentary

Following the strong quarterly results, the management remains optimistic about the company's future growth and performance.

Stock Market Reaction

Shares of Bajaj Housing Finance were trading at ₹137.5, around 1% gain on the NSE . The stock increased further by 4% reaching a day's high of ₹142.30. This could be uplifted by the company’s quarterly report which displayed the company’s strong financial performance and resilience in a competitive market. 

The shares ended at approximately ₹136.5, down by ₹2.75 (1.97%) on the NSE on October 21, just before the earnings release. In recent weeks, the stock has faced some resistance in the market. It dropped over 15% from a record high of ₹188.50, which was achieved after its market debut.

Also check Bajaj Shares - Group Stocks

About Bajaj Housing Finance & Upcoming News

Bajaj Housing Finance is one of India’s valuable home loan financiers. The company announced its first quarterly earnings since its IPO in September 2024. Out of the IPO proceeds, ₹1,500 crore remains to be deployed, expected to be utilised in October 2024. 

The company continues to maintain a strong capital adequacy ratio (CAR) of 28.98%, well above the regulatory requirement of 15%, with a debt-to-equity ratio of 4.0 times. It also reported a management and macroeconomic overlay provision of ₹44 crore, with a loan loss to average loan assets ratio of 0.02%.