Bajaj Finance tumbles after Q1 results

Bajaj Finance fell 4.18% to Rs 3039.15 at 13:47 IST on the BSE after company reported increase in gross NPAs along with increase in loan losses provisions.

The result was announced during market hours today, 25 July 2019.

Meanwhile, the S&P BSE Sensex was down by 48.96 points or 0.13% to 37,896.61.

On the BSE, 4.12 lakh shares were traded in the counter so far compared with average daily volumes of 1.21 lakh shares in the past two weeks. The stock had hit a high of Rs 3242.25 and a low of Rs 2998 so far during the day. It hit a 52-week high of Rs 3761.35 on 5 July 2019 and a 52-week low of Rs 1912 on 8 October 2018.

Bajaj Finance's consolidated net profit rose 43% to Rs 1195.25 crore on 47.5% rise in total income to Rs 5808.29 crore in Q1 June 2019 over Q1 June 2018.

The company's loan losses and provisions jumped 69% from Rs 327 crore in Q1 June 2018 to Rs 551 crore in Q1 June 2019. The provisioning coverage ratio as of 30 June 2019 was 61%.

The ratio of gross NPAs to gross advances stood at 1.6% as on 30 June 2019 as against 1.54% as on 31 March 2019 and 1.39% as on 30 June 2018.

The ratio of net NPAs to net advances stood at 0.64% as on 30 June 2019 as against 0.63% as on 31 March 2019 and 0.44% as on 30 June 2018.

Capital adequacy ratio (including Tier-11 capital) as of Q1 June 2019 stood at 19.48% while the Tier-1 capital ratio stood at 15.48%.

On a positive side, the company's asset under management (AUM) grew 41% from Rs 91,287 crore in Q1 June 2018 to Rs 1,28,898 crore in Q1 June 2019. Net Interest income was up by 43% from Rs 2,579 crore in Q1 June 2018 to Rs 3,695 crore in Q1 June 2019.

Bajaj Finance is one of the leading non-banking financial corporations in India. The company's product offering includes consumer durable loans, lifestyle finance, digital product finance and personal loans.

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