Bajaj Housing Finance Reports 21% Profit Jump in Q2 FY25 Post-IPO

Bajaj Housing Finance Ltd has reported an impressive 21% year-on-year (YoY) growth in profit for Q2 FY25, marking its first earnings release after its recent IPO. The company’s net profit reached ₹545.60 crore, up from ₹451.11 crore in Q2 FY24. Revenue from operations also saw a notable 26% increase, reaching ₹2,410.15 crore.

Bajaj Housing Finance Reports 21% Profit Jump in Q2 FY25 Post-IPO

Bajaj Housing Finance Ltd had reported a 21% YoY net profit in Q2 FY25. This is the first set of earnings after the IPO of the company. The company has seen an increase of 26% in the revenue from operations that stands at ₹2,410.15 cr. The asset management has guided the robust results and crosses ₹1 lakh crore AUM for Bajaj Housing.

Bajaj Housing Finance Q2 FY25 Results

Bajaj Housing Finance Q2 FY25 Results Summary

Metric Q2 FY25 Q2 FY24 (YoY) Growth (%)
Net Profit ₹545.60 crore ₹451.11 crore 21%
Revenue from Operations ₹2,410.15 crore ₹1,911.49 crore 26%
Disbursements ₹12,014 crore ₹12,154 crore -1%
Asset Under Management (AUM) ₹1 lakh crore Not reported -
Gross NPA (GNPA) 0.29% Not reported -
Net NPA (NNPA) 0.12% Not reported -
Capital Adequacy Ratio (CRAR) 28.98% 15% (Regulatory) -
Liquidity Buffer ₹3,220 crore Not reported -
Liquidity Coverage Ratio (LCR) 220.9% 85% (Regulatory) -

Important Take-Aways

Profit Growth: Bajaj Housing’s profit had increased by 21% that reflected good operating performance after listing.

Revenue up 26% YoY: This reflected good operating growth in the housing finance space

Disbursements at ₹12,014 crore for Q2 FY25 whereas it had close to of ₹12,154 crore in Q2 FY24

AUM Crosses ₹1 lakh crore mark: Bajaj Housing Finance AUM stood at more than ₹1 lakh crore thereby reflecting its leadership in the housing finance space

Good financial parameters:

Net Worth: The net worth of the company stands at ₹18,772 crore as on 30 September 2024.
Capital Adequacy Ratio: Bajaj Housing’s CRAR was 28.98%, which is much more than the regulatory requirement of at 15%.
Liquidity Buffer: Maintaining the cash reserve of ₹3,220 crore, the company has ensured a liquidity coverage ratio of 220.9%, way above the necessity of 85%.

Efficiency and Risk Management:

Bajaj Housing Finance remained well-balanced with respect to managing risks by reporting 0.29% gross non-performing asset and net non-performing asset of 0.12%. Besides, the company has improved operational efficiency with further reduction in Opex to NTI ratio at 20.5% in Q3FY24 as against Q2 FY24 22.1%.

Business Financial Strength

The commercial business during the quarter remained healthy as disbursements are led by a few marquee transactions amounting to Rs 12,014 crore. The comparable level of disbursements continues to reflect Bajaj Housing’s ability to maintain competitive advantage in the market for commercial real estate finance.

IPO Impact and Reaction on Share Price:

This is the first earnings report of Bajaj Housing Finance Company after it had completed its new initial public offering (IPO). Although the financial performance has been great, shares of the company ended 1.97% lower at ₹136.55 on the day of announcement of results. That small fall may be attributed to general market reasons rather than intrinsic company-specific trouble since the results have been released after the market hours.

A Housing Finance Market Leader

Bajaj Housing Finance is an HFC that does not accept any deposits and is registered with the National Housing Bank (NHB). Its robust financials, which are in tune with the healthy capital adequacy and liquidity, have further positioned it as one of the leaders in India’s housing finance market.

Given these continuing disbursements, high asset growth, and a sense of efficiency going well, Bajaj Housing Finance is aptly positioned to generate opportunities for growth in housing as well as commercial real estate going into the future.

Conclusion

Profit after tax reported Q2 FY25 and is testimony to solid growth and all-out momentum for Bajaj Housing Finance buoyed by a strong post-IPO performance, positive revenue growth as well as asset management. The company remains a consistent leader in the housing finance space with sound risk management practices and a healthy liquidity position. Investors and market watchers must watch how Bajaj Housing copes with future challenges and sustains its momentum in a fast-growing Indian housing finance market.
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