Bajaj Housing Finance gains 4% on strong Q2FY25 results; profit rises 21%

Shares of Bajaj Housing Finance surged 4.2 per cent at Rs 142.30 a piece on the BSE in Monday’s intraday deals. This came after the company posted its second quarter of the financial year 2024-25 (Q2FY25).

Bajaj Housing reported a 21 per cent year-on-year (Y-o-Y) increase in net profit, reaching Rs 545.6 crore for the second quarter ending September 30, 2024. In the same quarter of the previous fiscal year, the company posted a net profit of Rs 451.1 crore. Revenue from operations also saw a rise of 21.1 per cent Y-o-Y, totaling Rs 2,410 crore compared to Rs 1,911.5 crore in the year-ago period.

During the second quarter, the company experienced strong growth with assets under management (AUM) increasing by 26 per cent. This absolute AUM growth has remained consistent over the past two quarters. 

Profit before tax (PBT) grew by 23 per cent, while the company maintained solid risk performance, with gross non-performing assets (NPA) at 0.29 per cent and net NPA at 0.12 per cent. 

Operating efficiencies continued to improve, with operating expenses (opex) to net total income (NTI) ratio decreasing to 20.5 per cent from 22.1 per cent in the same quarter last year. The loan loss to average loan assets ratio stood at 0.02 per cent, and net of overlay release, the credit cost was 0.14 per cent.

The company had floated a Rs 6,560-crore initial public offering (IPO) in September this year. The shares of the company have given investors a whopping return of 96.8 per cent over its issue price of Rs 70. 

The company has a total market capitalisation of Rs 1.14 trillion crore. At 11:29 AM, the stock price of the company was up by 0.84 per cent at Rs 137.70 a piece on the BSE. By comparison, the BSE’s Sensex was down 0.31 per cent to 80,901 level.

Bajaj Housing Finance, a subsidiary of Bajaj Finance—one of India’s most diversified non-banking financial companies (NBFCs)—is headquartered in Pune. The company offers a range of financing options for individuals and businesses looking to purchase or renovate homes and commercial properties.

In addition to home loans, it provides loans against property for personal or business needs, as well as working capital to support business expansion. Bajaj Housing Finance also assists developers with financing for residential and commercial construction projects and offers lease rental discounting services to both developers and high-net-worth individuals.