Bajaj Finance tumbles 8% after March quarter earnings

Bajaj Finance tumbles: Bajaj Finance shares witnessed a sharp decline on Friday, plummeting nearly 8 per cent on the back of disappointing March quarter earnings. The stock dropped as much as 7.75 per cent to hit an intraday low of Rs 6,728 on the Bombay Stock Exchange (BSE), while on the National Stock Exchange (NSE), it fell 7.60 per cent to Rs 6,740.

In its financial report released on Thursday, Bajaj Finance disclosed a 21 per cent increase in consolidated net profit, reaching Rs 3,825 crore for the March quarter. This marked a significant uptick from the net profit of Rs 3,158 crore recorded in the corresponding period last year.

The non-banking finance company (NBFC) attributed the growth to a surge in total income, which rose to Rs 14,932 crore on a consolidated basis for the January–March period of 2023–24, compared to Rs 11,368 crore in the prior year.

Net interest income also experienced robust growth, escalating by 28 per cent during the fourth quarter of the previous fiscal year to Rs 8,013 crore from Rs 6,254 crore a year ago. However, total expenses surged to Rs 9,830 crore from Rs 7,108 crore in the same period, as indicated in the regulatory filing.

Bajaj Finance's consolidated results encompass various entities, including Bajaj Housing Finance Ltd, Bajaj Financial Securities Ltd, Snapwork Technologies Pvt Ltd, and Pennant Technologies Pvt Ltd.

Despite the positive earnings report, concerns arose as the company disclosed gross non-performing Assets (NPAs) and net NPAs of 0.85 per cent and 0.37 per cent, respectively, as of March 2024. Investors reacted cautiously to these figures, prompting the decline in share prices.

(with PTI inputs)