Bajaj Housing Finance Q2 results: Net profit rises 21% to Rs 546 crore

This is the first quarterly earnings report after its equity capital market listing in September 2024

The net profit of Bajaj Housing Finance, a non-banking financial company (NBFC), surged 21 per cent year-on-year (Y-o-Y) to Rs 546 crore in the second quarter of FY25 (Q2FY25) from Rs 451 crore in Q2FY24, aided by healthy growth in total income.

This is the first quarterly earnings report after equity capital market listing in September, 2024.

The total income of the company rose 18 per cent Y-o-Y to Rs 897 crore. The net interest income (NII) increased by 13 per cent to Rs 713 crore. The net interest margin (NIM) dropped to 4.1 per cent in the quarter under review from 4.4 per cent.

The expenses of the company increased by 10 per cent to Rs 184 crore.

Provisions of the company dropped by 72 per cent Y-o-Y to Rs 5 crore from Rs 18 crore in the last year. The cost of funds of the company rose to 7.92 per cent from 7.64 per cent in Q2FY24.

According to the presentation, in Q2FY25, disbursements were Rs 12,014 crore, which was highest ever, driven by few marquee transactions in commercial business.

The asset quality of the company dropped marginally with gross non-performing assets (GNPA) rising marginally to 0.29 per cent in Q2FY25 from 0.28 per cent in Q1FY25. The net NPA rose to 0.12 per cent from 0.11 per cent.

The capital adequacy ratio of the NBFC stood at 28.98 per cent as of September 30, 2024 as against 22.64 per cent as of September 30, 2023.

The Assets Under Management (AUM) of the company stood at Rs 1.03 trillion, 26 per cent higher than Rs 70,954 crore, last year.