Bajaj Finance rises 3% on robust Q1 data; gains 9% in 4 sessions

Bajaj Finance share price continued its gaining streak for the fourth straight session and topped the BSE Sensex chart by rising more than 3% in intraday trade on Wednesday. The Bajaj Group stock got a boost after the financial services company reported robust performance in April-June quarter of the current financial year (FY23).

The Pune-headquartered non-banking financial services (NBFC) in an exchange filing said it recorded the highest ever quarterly increase in its customer franchise of 2.7 million in the first quarter ended June 30, 2022. Customer franchise stood at 60.3 million as compared to 50.5 million as of 30 June 2021, the company said in a press release on July 5.

As per the company, new loans booked during Q1FY23 stood at 7.4 million as against 4.6 million the corresponding period last year. The core assets under management1 (AUM) stood at around ₹204,000 crore as of June 30, 2022, compared with ₹156,115 crore in June quarter of 2022, up 31% on an annual basis. Core AUM during the quarter under review grew by nearly ₹11.90 crore.

“Consolidated net liquidity surplus stood at approximately ₹11.550 crore as of 30 June 2022. The company's liquidity position remains strong,” the release highlighted.

As per the release, the company continues to remain well capitalised with a capital adequacy ratio (CRAR) of approximately 26.2% as of 30 June 2022. During the quarter, the company invested around ₹2,500 crore in equity shares of Bajaj Housing Finance, a wholly-owned subsidiary of the company.

Bajaj Finance’s deposit book stood at ₹34,100 crore at the end of the June quarter of 2023, as compared to ₹27,972 crore as of June 30, 2021, up 22% YoY.

Buoyed by strong operational performance, Bajaj Finance shares opened higher at ₹5,673.10, against the previous closing price of ₹5,662.05. During the session so far, the index heavyweight rose 3.7% to hit an intraday high of ₹5,872 apiece. The stock has gained nearly 9% in the past four days, while it has fallen 2.5% over a month period. The NBFC major has fallen more than 18% in the current calendar year, while it has delivered a negative return of 5% to its shareholders in the past one year.

The stock hit a 52-week low of ₹5,235.60 on June 17, 2022, after touching a 52-week high of ₹8,043.50 on January 19 this year, registering a decline of 35% during this period.

For the fourth quarter ended March 2022, Bajaj Finance reported the highest ever consolidated net profit of ₹2,419.51 crore, compared to ₹1,346.64 crore in the corresponding quarter last year, up 79.7% YoY. The net interest income (NII) for the quarter rose 30% to ₹6,068 crore, from ₹4,659 crore in the same period last year. The company also announced a dividend of ₹20 per share.