Bajaj Finance (BAJFINANCE) Q4 18/19 earnings summary

Executive summary

• FY2019 consolidated AUM grew 41% to ₹115,888 crore; total income rose 45% to ₹18,502 crore and PAT increased 60% to ₹3,995 crore.

• New loans booked increased 53% to 23.50 million and the customer franchise grew 32% to 34.48 million.

• Growth spanned consumer, SME, rural and housing finance, while liquidity management and risk controls helped navigate a difficult NBFC funding environment.

Financial highlights

• Consolidated FY2019 NII was ₹11,878 crore, up 46%; PBT was ₹6,179 crore, up 61%; basic EPS was ₹69.33, up 56%.

• Standalone total income rose 38% to ₹17,401 crore; PBT increased 58% to ₹6,035 crore and PAT rose 57% to ₹3,890 crore.

• Standalone impairment on financial instruments rose 44% to ₹1,476 crore; pre-provisioning operating profit increased 55% to ₹7,511 crore.

• Consolidated operating costs rose 28% to ₹4,198 crore, while operating cost to NII improved to 35% from 40% in FY2018.

Outlook and guidance

• FY2020 was expected to be challenging amid higher crude prices, moderating industrial and auto activity, El Niño-related food-price risk, and possible fiscal and inflation pressures.

• Confidence in navigating headwinds rested on a large customer franchise, liquidity, diversified products and geographies, and robust risk metrics.