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Bajaj Finance Q4FY21 Conference Call Highlights | Yadnya Investment Academy

Bajaj Finance Q4FY21 Conference Call Highlights | Yadnya Investment Academy

Published on 13 May 2021|
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Q4FY21 Highlights:

  • On yearly basis, the AUM of the company was around Rs. 1.53 Lakh Cr. as of 31st March 2021 and reported growth of 4%.
  • Profit After Tax (PAT) of the company grew by 42% to Rs. 1,347 Cr.
  • In terms of accounts booked, the company booked 5.5 million accounts.
  • The new customer acquisition run rate has come back to pre-COVID levels at 2.26 million which were added in Q4FY21.
  • The overall franchise was 48.6 million the cross-sell franchise was 27 million overall on a year-on-year basis growth of 27 million.
  • AUM in the Q4FY21 stood at Rs. 9,400 Cr., which was Rs. 8,500 Cr. in Q3FY21.
  • Total geographic footprint just a tad below 3,000 locations and 1,10,000 distribution points.
  • The overall cost of funds came in at 7.4% or 7.39% versus 8.37% a year ago.
  • The deposit book crossed the mark of Rs. 25,000 Cr.
  • Overall corporate and retail in that retail is 77% corporate is 23%.
  • Opex to NIM came at 34.5% as compared to 31% last year.
  • The capital Adequacy Ratio of the company remained very strong at 28.5%.

NPA Situation & Provisions:

  • The Gross NPA of the company is at 1.79%.
  • Net NPA is at 0.75% as of March 2021 and in absolute figure stood at Rs. 1,136 Cr.
  • Overall last year, as a result of COVID company entered FY2021 with a 900 odd Crores of COVID overlay and now again entering in a way the second wave with 840 odd Crores of management overlay and macro provision.

Business Transformation:

  • Launching of Omin Channel Frame for the company’s franchise with an update on its existing Experia App.
  • The Bajaj Pay for consumers is the payment infrastructure of the company with BBPS services gone live.
  • The three marketplace companies have which are e-store, insurance, and investment market place are in advanced stages of development at this point.
  • Sales app ecosystem, our merchant app ecosystem, collections app, and partner app ecosystem will go live between May and September in a phased manner again.
  • The first phase of the e-store has gone live in February, the company is having now 25,000 SKUs on it for the consumer electronics business, 40,000 retailers have been onboarded and the final capabilities of the e-store will go live between July and August 2021.
  • The insurance and investments marketplace will go live between July and August as well.
  • 12 adjunct partner apps are live and overall, 28 apps will go live as the premium financial services go live. 


Credit Cost Outlook:

  • Credit Cost will be close to between 150 to 160 basis points.
  • The road acquisition is better it is also showing that the collections infrastructure of the company is much stronger.
  • It should be between 150 to 170 basis points in the first quarter of FY22.

Write-Off:

  • Rs. 1,530 Crores was the additional write-off that the company had done on account of COVID wave stress.
  • And, Rs. 500 Crores of a normal write-off.
  • Total Write-off amounted to around Rs. 2,000 Cr.

FY22 Outlook:

  • If everything comes to normalcy, the company can deliver balance sheet growth of around 25% to 27%, and ROE of 18% to 20%.
  • The Company looks confident to deliver long-term guidance metrics if lockdowns which may further lead to moratorium issues do not happen.
  • Significantly augmented and is increasing digital capability to remain fully functional.

 

 

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