Bajaj Finance Q1FY20E Result Expectation

Bajaj Finance Q1FY20E Result Expectation

Consensus expectations for Q1FY20E:

• NII – Rs3,141cr, up by 22.2% yoy and decline by 7.5% qoq, due to strong AUM growth and expansion in margins.
• PPOP – Rs2,383cr, up by 46.7% yoy and 7.3% qoq, due to higher NII.
• PAT – Rs1,270cr, up by 51.9% yoy and 8% qoq, due to higher PPOP.

Remarks:

• We forecast loan growth will remain strong at 36% yoy, however lower than 41% reported in 4QFY19.
• We expect NIM will expand qoq by 10bps to 9.8%, we expect the cost-income ratio to improve to 56% from 57% qoq due to higher contribution from the consumer business.
• With proper cost management and productivity gains, the cost/income ratio is expected to improve.
• Growth in mortgages is a key monitorable.

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