Bajaj Finance hits record high as Q4 profit beats estimates;stock surges 7%

The stock rallied 7% to Rs 2,045, also its record high on the BSE, after the company reported a better than expected 60% YoY jumped in its standalone net profit at Rs 7.21 billion in March quarter

Bajaj Finance has moved higher by 7% to Rs 2,045, also its record high on the BSE, after the company reported a better than expected 60% year on year (YoY) jumped in its standalone net profit at Rs 7.21 billion in March quarter (Q4FY18). The stock surpassed its previous high of Rs 1,989 recorded on September 8, 2017 in intra-day trade.

Net revenue from operations grew 40% at Rs 23.43 billion against Rs 16.78 billion in the corresponding quarter of previous fiscal.

Analysts on an average had expected profit of Rs 6.46 billion and Rs 23.02 billion operational revenues for the quarter.

New loans booked during Q4FY18 increased by 51% to Rs 3.78 million from Rs 2.50 million in Q4FY17.

Assets quality of the company improves during the quarter with gross non-performing assets (NPA) and net NPA as of March 31, 2018 stood at 1.48% and 0.38% respectively.

“As required by RBI guidelines, the Company has moved its NPA recognition policy from 4 months overdue to 3 months overdue in this financial year. The comparable Gross and Net NPA on 4 months overdue stood at 1.28% and 0.29% respectively as against 1.68% and 0.44% respectively as of March, 31 2017,” Bajaj Finance said in a press release.

Bajaj Finserv too moved higher by 5% to Rs 5,574 on the BSE. Bajaj Finance is the lending and wealth advisory arm of Bajaj Finserv.