Bajaj Finance Q2FY18 net profit slightly below estimates | Financial results | Fundamental analysis | Outlook | Healthy asset under management growth | Indianotes.com


Bajaj Finance Ltd. reported net profit growth slightly below analyst estimates weighed down by higher operating expenditure. The non-banking finance company, however, reported healthy asset under management growth while keeping bad loans in check.

Bajaj Finance has posted strong 37% growth in the net profit to Rs 556.90 for the quarter ended September 2017 (Q2FY2018). Income from operations on a standalone basis increased 32% to Rs 3086.24 crore, while other income jumped 188% to Rs 16.09 crore. Total income moved up 33% to Rs 3102.33 crore in the quarter ended September 2017. Interest expenses rose at slower pace of 20% to Rs 1143.78 crore. NII of the company galloped 41% to Rs 1958.55 crore in Q2FY2018.

Operating expenses increased 48% to Rs 851.15 crore, allowing the operating profit to jump 37% to Rs 1107.40 crore. Depreciation moved up 36% to Rs 24.07 crore, while loan loss provisions increased 38% to Rs 227.82 crore in Q2FY2018. PBT increased 37% to Rs 855.51 crore. Effective tax rate was flat at 34.9% in Q2FY2018 from 34.9% in Q2FY2017. Net Profit of the company moved up 37% to Rs 556.90 crore in the quarter ended September 2017.

AUM increased 38%, on yoy basis, to Rs 72,139 crore at the end September 2017 from Rs 52,332 crore at end September 2016. Consumer segment AUM increased 42% to Rs 33815 crore, while SME AUM moved up 18% to Rs 24113 crore. The commercial segment AUM has shown a surge of 57% to Rs 9589 crore, while rural segments AUM zoomed 137% to Rs 4622 crore at end September 2017.

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