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Bajaj Housing Finance Ltd (BHFL) on Monday (October 21) reported a 21% year-on-year (YoY) increase in net profit at ₹545.6 crore for the second quarter that ended September 30, 2024.
In the corresponding quarter of the previous fiscal, Bajaj Housing Finance posted a net profit of ₹451.1 crore, the company said in a regulatory filing. The company’s revenue from operations rose 21.1% to ₹2,410 crore against ₹1,911.5 crore in the year-ago period.
In the second quarter ended September, the company continued to have strong growth with assets under management (AUM) growth of 26%. Absolute AUM growth has been in the same range over the last two quarters.
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The profit before tax (PBT) growth was 23% while maintaining strong risk performance with gross non-performing assets (NPA) at 0.29% and net NPA at 0.12%. Operating efficiencies also continued to improve and opex (operating expenses) to net total income (NTI) improved to 20.5% vs 22.1% in last year’s Q2.
Bajaj Housing Finance Ltd reported a management and macroeconomic overlay provision of ₹44 crore as of September 30, 2024. The loan loss to average loan assets ratio stood at 0.02%, and net of overlay release, the credit cost was 0.14%.
Stage 2 assets reduced to ₹289 crore in Q2 FY25, down from ₹309 crore in Q2 FY24, while the stage-3 provision coverage ratio (PCR) stood at 57.9%. As of September 30, BHFL’s net worth amounted to ₹18,772 crore.
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The capital adequacy ratio (CAR) stood at 28.98%, significantly higher than the regulatory requirement of 15%, with tier-1 capital accounting for 28.46%. The leverage ratio was 5.0 times, and the debt-to-equity ratio was 4.0 times, driven by a primary capital raise of ₹3,560 crore through an IPO.
Out of the IPO proceeds, ₹1,500 crore is yet to be deployed and remains in the monitoring account as of September 30, and is expected to utilised during October 2024.
The results came after the close of the market hours. Shares of Bajaj Housing Finance ended at ₹136.55, down by ₹2.75, or 1.97% on the BSE.
(Edited by : Shoma Bhattacharjee)