Bajaj Housing Finance Q2FY25 Results Out, AUM up 26%

Bajaj Housing Finance just released its Q2FY25 numbers, and it’s another solid quarter for the company. The big highlight? Their assets under management (AUM) crossed the Rs.1 lakh crore mark, hitting Rs.1.03 lakh crore, a 26% growth from Rs.81,215 crore in the same quarter last year. Their loan book is pretty diversified too, with home loans making up 57% of the total AUM, followed by loans against property at 19.6%, lease rental discounting at 11.7%, and developer finance at 9.8%.

Disbursement & Profit Growth

For Q2FY25, the company recorded disbursements of Rs.12,014 crore, maintaining stable momentum compared to Rs.12,154 crore in Q2FY24. Net interest income grew by 13% YoY, reaching Rs.713 crore from Rs.632 crore in the previous year. Bajaj Housing Finance also saw a robust 21% YoY increase in net profit, reporting Rs.545 crore for Q2FY25, up from Rs.451 crore in Q2FY24. Sequentially, the net profit improved by 13% from Rs.483 crore in Q1FY25.

Asset Quality & Capital Adequacy

The company’s asset quality remained strong, with gross non-performing assets (GNPA) standing at 0.29% and net NPAs at 0.12%, marginally higher than 0.24% and 0.12% in Q2 FY24. Bajaj Housing Finance’s capital adequacy ratio showed an increase, rising to 28.98% as of September 2024, far exceeding the regulatory requirement of 15%.

Stock Performance & IPO Impact

Despite strong financials, Bajaj Housing Finance’s stock has struggled. It’s currently trading at Rs.137.71, down 16.54% from its listing price of Rs.150 per share. While the IPO was a success, with shares initially listing at a 114.2% premium, market sentiment has since shifted, pushing the stock lower.

Conclusion: Despite some market hiccups, Bajaj Housing Finance delivered another strong quarter. With growing profits, a diversified loan book, and capital reserves, the company is well-positioned for the future.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.