Bajaj Housing Finance Limited , a prominent player in India's housing finance sector, has reported a robust financial performance for the first quarter of the fiscal year. The company's net profit saw a significant year-over-year increase of 21%, rising from ₹4.83 billion to ₹5.83 billion.

Revenue Growth

The company's revenue also showed strong growth, climbing to ₹26.2 billion in Q1, up from ₹22 billion in the same period last year. This represents a 19% increase in top-line performance, indicating solid business expansion and market demand for the company's financial products.

Key Financial Metrics

Bajaj Housing Finance's financial results reveal several noteworthy aspects of its performance:

Profitability and Efficiency

• Profit Before Tax: Increased by 20% to ₹757 crore, compared to ₹630 crore in the same quarter of the previous fiscal year.
• Return on Assets (ROA): Remained stable at 2.3% (annualized), indicating consistent operational efficiency.
• Return on Equity (ROE): Stood at 11.6% (annualized), reflecting the company's ability to generate returns for shareholders.

Asset Quality and Capital Adequacy

Bajaj Housing Finance maintained a strong asset quality profile, although with slight increases in non-performing assets:

• Gross Non-Performing Assets (GNPA): Marginally increased to 0.30% from 0.28% a year ago.
• Net Non-Performing Assets (NNPA): Slightly up at 0.13%, compared to 0.11% in the previous year.
• Provision Coverage Ratio: Stood at a healthy 56% for stage 3 assets.
• Capital Adequacy Ratio: Improved to 26.94%, well above the regulatory requirement of 15%.
• Annualized Credit Cost: 0.16%

Liquidity and Market Position

The company reported a strong Liquidity Coverage Ratio of 210.57%, significantly higher than the regulatory requirement of 100%. This indicates robust liquidity management and the ability to meet short-term obligations.

Bajaj Housing Finance continues to enjoy the highest credit ratings of AAA/Stable for its long-term debt programme and A1+ for its short-term debt programme from CRISIL and India Ratings, underlining its strong financial position and market credibility.

Portfolio Composition and Operational Reach

The company's diversified portfolio comprises:

• 55.8% home loans
• 20.4% lease rental discounting
• 11.9% loan against property
• 10.5% developer finance

Bajaj Housing Finance operates across 21 states/UTs with 217 branches covering 175 locations, demonstrating a wide operational reach.

Cost Management and Future Outlook

The company's cost of funds reduced by 21 basis points to 7.7% on a sequential basis, indicating improved financial efficiency.

Due to competitive market conditions, management has moderated the FY26 AUM growth guidance to 21-23% from the medium-term target of 24-26%.

The company's board of directors approved these unaudited financial results at a recent meeting. The results demonstrate Bajaj Housing Finance's resilience and growth in a competitive market, positioning it well for continued expansion in the housing finance sector despite some moderation in the real estate market and competitive pricing pressures.

Bajaj Housing Finance , a prominent player in the housing finance sector, has reported impressive growth figures for Q1. The company's performance highlights its strong position in the market and its ability to capitalize on the growing demand for housing finance in India.

Key Highlights

Strong Growth in AUM and Loan Assets

Bajaj Housing Finance demonstrated robust growth in its Assets Under Management (AUM), which surged by 24% compared to the same period in the previous year. The AUM reached ₹1.20 lakh crore, indicating the company's expanding market presence and customer base.

The company's loan assets also showed significant growth, increasing to ₹1.06 lakh crore from ₹85,283 crore in the previous year. This substantial rise in loan assets reflects the company's aggressive lending strategy and its ability to meet the growing demand for housing finance products.

Impressive Disbursement Growth

Gross disbursements witnessed a notable increase of 22% year-over-year, amounting to ₹14,640 crore for the quarter. This growth in disbursements suggests a strong demand for Bajaj Housing Finance's products and services, as well as the company's efficient loan processing and disbursement mechanisms.

Conclusion

The robust performance across key metrics - AUM, loan assets, and disbursements - underscores Bajaj Housing Finance's strong market position and its ability to capitalize on the growing housing finance sector in India. As the company continues to expand its portfolio and reach, it appears well-positioned to maintain its growth trajectory in the coming quarters.