Bajaj Finance (BAJFINANCE) Q4 17/18 earnings summary

Executive summary

• FY2018 delivered strong growth: standalone AUM rose 34% to ₹80,444 crore and PAT increased 44% to ₹2,647 crore; net NPA was 0.38%.

• More than 15 million loans were booked; operations spanned six verticals and 1,332 locations, including 602 rural locations.

Financial highlights

• Standalone total income rose 33% to ₹13,329 crore; net interest income increased 41% to ₹8,744 crore; PBT rose 44% to ₹4,056 crore and PAT 44% to ₹2,647 crore.

• Consolidated total income increased 35% to ₹13,466 crore; NII rose 43% to ₹8,831 crore; PBT grew 45% to ₹4,096 crore and PAT 46% to ₹2,674 crore.

• Standalone receivables under financing grew 36% to ₹77,125 crore; operating costs rose 43% to ₹3,658 crore and loan losses/provisions increased 28% to ₹1,030 crore.

Outlook and guidance

• FY2019 was expected to be challenging amid possible tighter monetary policy, volatile interest rates and liquidity uncertainty; normal monsoons and improving activity were potential supports.

• RBI projected GDP growth of 7.4% in FY2019 and 7.7% in FY2020; management expected greater economic activity while preparing for money-supply and interest-rate uncertainty.

• The shareholder letter set a goal for FY2019 performance to exceed FY2018 results.