Bajaj Finance’s Stock Surges With Q4FY13 Results Announcement

Bajaj Finance - the non-banking finance arm of the Bajaj group - has witnessed a good movement in its stock prices in today’s (May 15, 2013) trade. The stock has hit a 52-week high after the company came out with the strong results for the quarter ended March 2013. The topline witnessed a growth of 36% on a YoY basis to stand at Rs 780.29 crore. The bottomline grew by 52% on a YoY basis for Q4FY13 to stand at Rs 163.81 crore as against Rs 108.27 crore. The bottomline has been far better than what the street had expected.

In the recently concluded quarter, the disbursement of loan has witnessed a growth of 21% on a YoY basis to stand at Rs 5106 crore. The disbursement has been better than that of the industry average of 14% as far as credit growth is concerned. The Net interest income (NII) witnessed a growth of 33% on a YoY basis for the recently concluded quarter to stand at Rs 517 crore.

However, the deployment to small and medium enterprises (SMEs) has been on the better side. This segment of the company has expanded the most to the tune of 66% on a YoY basis to stand at Rs 2110 crore for the last quarter of the bygone fiscal.

It has been noted that the company has brought down its exposure to commercial segment which includes construction equipments, infrastructure loans and vendor financing for the fourth quarter consecutively. The loan growth in this division has declined by 45% to stand at Rs 700 crore for Q4FY13.

Deployment of credit towards consumer goods rose by 27% on a YoY basis Rs 2300 crore for Q4FY13. Finance cost or borrowing costs rose sharply on a YoY basis by 40% to Rs 326 crore. 

During the quarter, gross non-performing asset (NPA) ratio rose marginally to 1.09% as against 1.05% a year ago. The net NPA ratio stood at 0.19% as compared to 0.12% during the same period. The company has declared a dividend of Rs 15 per share taking the dividend yield to 1.07%. The stock trades at a price to book value of 2.52x.