Bajaj Housing Finance (BAJAJHFL) Q2 24/25 earnings summary

Executive summary

• Achieved two major milestones: public listing and surpassing ₹1,02,569 crore AUM in Q2 FY25, with 26% year-over-year AUM growth and 23% PBT growth while maintaining strong asset quality (GNPA 0.29%, NNPA 0.12%).

• Net interest income for Q2 FY25 increased 13% year-over-year to ₹713 crore, and PAT grew 21% to ₹546 crore.

• Successfully completed IPO in September 2024, raising ₹3,560 crore (gross), with ₹1,500 crore yet to be deployed as of quarter-end.

• Disbursements remained robust at ₹12,014 crore, and operating efficiency improved with opex to NTI at 20.5% versus 22.1% in Q2 FY24.

• Liquidity buffer stood at ₹3,220 crore with a coverage ratio of 220.9%, and the company maintains the highest domestic credit rating (AAA/A1+).

Financial highlights

• AUM reached ₹1,02,569 crore, up 26% year-over-year; loan assets at ₹89,878 crore, up 27%.

• Net total income for Q2 FY25 was ₹897 crore, up 18% year-over-year; PBT at ₹708 crore, up 23% year-over-year.

• Opex to NTI improved to 20.5% from 22.1% year-over-year; loan loss to average loan assets at 0.02%.

• NIM improved to 4.1% in Q2 FY25 from 3.9% in Q1 FY25; gross spread stable at 1.9%.

• Capital adequacy ratio (CRAR) at 28.98%, well above the 15% regulatory requirement.

Outlook and guidance

• Disbursement growth in retail expected to pick up as affordable and near-prime segments scale.

• No major changes anticipated in disbursement trends; AUM growth expected to remain stable.

• Credit costs expected to normalize at 14-17 bps as overlay releases are nearly exhausted.

• IPO proceeds of ₹1,500 crore remain to be deployed, expected to be utilized in October 2024.

• Focus on scalable growth through prime housing and lease rental discounting, maintaining a low-risk, medium-return business model.