Bajaj Finance - 1QFY21 results - Mr. Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking Ltd.

"Bajaj finance reported a mixed set of numbers considering lockdown led lower retail and business activity. AUM grew 7% YoY however declined 6% QoQ. NII grew by 10% in line with AUM growth. Controlled opex helped Bajaj finance to report the growth of 25% in Pre provision profit. Spike in provision of almost 2x of Q1FY20 impacted profitability. On the asset quality front, lower slippages and write-off led to a decline in GNPA from 1.6% in Q1FY20 to 1.4% in Q1FY21. Moratorium books reduced from 27% to 15%. Credit cost guidance has been revised from Rs.5400 -Rs.5700cr to Rs.6000-Rs.6300cr. Given the lockdown, the Company decided to convert some of its existing customers with no overdue and good repayment track record from the term loan to a Flexi loan. In Q1 FY21, the company converted Rs.8,600 crore of term loans into Flexi loans."

Shares of Bajaj Finance Limited was last trading in BSE at Rs.3441.35 as compared to the previous close of Rs. 3301.8. The total number of shares traded during the day was 651031 in over 54662 trades.

The stock hit an intraday high of Rs. 3452.8 and intraday low of 3316.35. The net turnover during the day was Rs. 2205608665.

Source : Equity Bulls

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