Net Profit:

Compared to the ₹483 crore it made in the same quarter last year, Bajaj Housing Finance's net profit of ₹583 crore is a 21% increase.

Pre-Provisioning Operating Profit (PPOP)

This represents the business's earnings before any funds are placed aside for possible loan losses.

Strong operational performance was demonstrated by the 25% increase to ₹798 crore from ₹640 crore the previous year.

Net Total Income:

The company is making more money from its loan business, as seen by the 25% increase in overall income (after interest charges) to ₹1,012 crore.

Net Interest Margin (NIM) Steady at 4%

For the past three quarters, Bajaj Housing Finance's loan division has generated a 4% margin.

This indicates that it is generating 4% profit on the money it lends after paying interest on the money it borrows.

What Might Change?

In the upcoming quarters, the company anticipates a small decline in this margin.

Why?

Due to the fact that it is spending more on expansion, specifically on:

Strategic Business Units (SBUs) that are new.

Expanding in non-metropolitan and smaller cities.

Higher operating expenses as a result of these actions may marginally lower the lending company's profit margin.

To reach Rs 1.20 lakh crore, the lender's AUM increased 24% annually. With a gross non-performing assets ratio of 0.30%, asset quality remained stable.

Bajaj Housing Finance Posts 21% Jump in Q1 Profit to ₹583 Cr; AUM Grows 24%

Author: Anushka Singh