Bajaj Finance Q4FY22 and Year Ended result : New loans grew 15% YoY, PAT up 80% to ₹2,419 crore

Q4 FY22 grew by 15% to 6.28 million as against 5.47 million in Q4 FY21.

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Bajaj Finance Ltd (Formerly Known as Bajaj Auto Finance Ltd) is one of the leading Non Banking Financial Corporation in India. It is the lending and investment arm of Bajaj Finserv group, is one of the most diversified NBFCs in the Indian market catering to more than 38 million customers across the country.

Apart from being the largest financier of consumer durables in India, BFL is also one of the most profitable firms in this category. The company has posted its Q4FY22 and year ended financial results today, the details are as below :

(I) Audited Consolidated Financial Results for Quarter Ended (YoY comparison):

The company has reported, a consolidated Total Income of ₹8,630.28 crore in the quarter ended on March 31, 2022 as against ₹6,854.94 crore in the corresponding quarter ended last year on Mar 31, 2021, increased by 25.89%.

The company has posted a consolidated Net Profit of ₹2,419.51 crore in the quarter ended on March 31, 2022 as against ₹1,346.64 crore in the corresponding quarter ended in last year on Mar 31, 2021. The PAT surges up by 79.67%.

The status of the EPS of the company stood at ₹39.86 as on March 31, 2022 compared to the previous quarter ended on Mar 31, 2021 which was ₹22.23, up by 79.30%.

₹*Mar 31, 2022 (Q4)Dec 31, 21 (Q3)Mar 31, 21 (Q4)
Total Income8,630.288,535.066,854.94
Total Expenses5364.795667.085032.35
PBT /(Loss)3265.492867.981822.59
Total Tax /(credit)845.98742.69475.95
PAT /(Loss)2,419.512,125.291,346.64
*figures are in Crores

(II) Audited Consolidated Financial Result details for the Year Ended :

The company has reported, a consolidated Total Income of ₹31,640.41 crore in the financial year ended on March 31, 2022 as against ₹26,683..05 crore for the financial year ended on Mar 31, 2021, increased by 18.57%.

The company has posted a consolidated Net Profit of ₹7,028.23 crore in the financial year ended on March 31, 2022 as against ₹4,419.82 crore for the financial year ended on March 31, 2021. The PAT surges up by 59.01%.

The status of the EPS of the company stood at ₹115.79 as on March 31, 2022 compared to the previous year ended on March 31, 2021 which was ₹73.00, up by 42.79%.

₹*Mar 31, 2022 (FY22)Mar 31, 2021 (FY21)
Total Income31,640.4126,683..05
Total Expenses22136.6320690.79
PBT /(Loss)9503.785992.26
Total Tax /(credit)2475.551572.44
PAT /(Loss)7,028.234,419.82
*figures are in Crores
Market Times

(III) Key Highlights about the Performance :

Q4 FY22

» New loans booked during Q4 FY22 grew by 15% to 6.28 million as against 5.47 million in Q4 FY21.
» Customer franchise stood at 57.57 million as of 31 March 2022 as compared to 48.57 million as of 31 March 2021, a growth of 19%. The Company’s customer franchise grew by 2.21 million in Q4 FY22.
» Assets under management (AUM) grew by 29% to ₹197,452 crore (including IPO financing receivables of ₹5,365 crore) as of 31 March 2022 from ₹152,947 crore as of 31 March 2021. Core AUM growth1 in Q4 FY22 was ₹10,837 crore.
» Net interest income for Q4 FY22 increased by 30% to ₹6,068 crore from ₹4,659 crore in Q4 FY21.
» Total operating expenses to net interest income for Q4 FY22 was 34.6% as against 34.5% in Q4 FY21 .
» Loan losses and provisions for Q4 FY22 was ₹702 crore as against₹1,231 crore in Q4 FY21. The Company holds a management and macro-economic overlay of₹1,060 crore as of 31 March 2022.
» Profit before tax for Q4 FY22 increased by 79% to ₹3,265 crore from ₹1,823 in Q4 FY21.
» Profit after tax for Q4 FY22 increased by 80% to ₹2,420 crore from ₹1,347 crore in Q4 FY21.

FY22

  • New loans booked during FY22 grew by 46% to 24.68 million as against 16.88 million in FY21.
  • Customer franchise stood at 57.57 million as of 31 March 2022 as compared to 48.57 million as of 31 March 2021, a growth of 19%. Customer franchise recorded highest ever increase of 9.0 MM in FY22.
  • Net interest income for FY22 increased by 27% to ₹ 21,892 crore from ₹ 17,269 crore in FY21.
  • Total operating expenses to net interest income for FY22 was 34.6% as against 30.7% in FY21.
  • Loan losses and provisions for FY22 was ₹ 4,803 crore as against ₹ 5,969 crore in FY21. The Company holds a management and macro economic overlay of ₹ 1,060 crore as of 31 March 2022.
  • The Board of Directors has recommended a dividend of ₹ 20 per equity share of face value of ₹2 (1000%) for FY22 (Previous year ₹10 per equity share of face value of ₹2 each i.e. 500%).
  • Deposits book grew by 19% YOY to ₹ 30,800 crore as of 31 March 2022. Its contribution to consolidated borrowings stood at 19% as of 31 March 2022. The Company has created a deposits V2 plan to grow deposits book significantly over the next 3 years.

(IV) Asset Quality :

Gross NPA and Net NPA as of 31 March 2022 stood at 1.60% and 0.68% respectively, as against 1.79% and 0.75% as of 31 March 2021. The Company has provisioning coverage ratio of 58% on stage 3 assets and 134 bps on stage 1 and 2 assets as of 31 March 2022. On 15 February 2022, RBI allowed deferment till 30 September 2022 of Para 10 of its earlier circular dated 12 November 2021 pertaining to upgradation of NPA accounts only on receipt of entire overdue of the customer. As a matter of prudence, the Company has not opted for this deferment.

Q4FY22Q4FY21
Gross NPA %1.601.79
Net NPA %0.680.75
% per cent

The stock of Bajaj Finance Ltd last hit in BSE,

  • Intraday High of ₹ 7260.00
  • Intraday low of ₹ 7095.65