Bajaj Finance (BAJFINANCE) Q4 21/22 earnings summary

Executive summary

• Consolidated FY2022 AUM grew 29% to ₹197,452 crore; customer franchise rose 19% to 57.6 million and new loan bookings reached 24.7 million.

• Consolidated PAT rose 59% to ₹7,028 crore, supported by 27% NII growth and a 20% decrease in impairment costs.

• Strong exit momentum, a well-provisioned balance sheet and omnichannel investment supported an optimistic FY2023 growth outlook.

Financial highlights

• Consolidated total income increased 19% to ₹31,640 crore; NII rose 27% to ₹21,892 crore YoY.

• Pre-impairment operating profit grew 20% to ₹14,307 crore; operating expenses increased 43% to ₹7,585 crore.

• Impairment on financial instruments fell 20% to ₹4,803 crore; PBT increased 59% to ₹9,504 crore and PAT rose 59% to ₹7,028 crore.

• Core AUM, excluding short-term IPO financing receivables, grew 26% to ₹192,087 crore; reported AUM increased 29% YoY.

Outlook and guidance

• FY2023 outlook remained positive, supported by strong entry momentum, a well-provisioned balance sheet and the omnichannel strategy.

• Medium-term balance-sheet growth guidance was 25%-27%; long-term shareholder-return ambition was 18%-20% through the cycle.

• Plans included 400-450 new locations in FY2023, alongside further app features, an integrated web experience and expanded payment capabilities.

• The network ambition was 5,000 locations over the next few years, versus 3,504 at FY2022 end.