{"id":154999,"date":"2023-10-17T15:01:40","date_gmt":"2023-10-17T19:01:40","guid":{"rendered":"https:\/\/44.250.171.167\/?p=154999"},"modified":"2023-10-17T15:01:41","modified_gmt":"2023-10-17T19:01:41","slug":"bajaj-finance-ltd-q2-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/bajaj-finance-ltd-q2-fy24-earnings-conference-call-insights\/","title":{"rendered":"Bajaj Finance Ltd Q2 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Bajaj Finance Ltd (BAJFINANCE) Q2 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Financial And Portfolio Metrics<\/strong>\n<ul>\n<li>AUM grew by INR20,167 crores to INR290,264 crores, up 63% year-on-year.<\/li>\n<li>Added 3.58 million new customers, now at just below 45 million total customers.<\/li>\n<li>Net NPA remained steady at 31 bps.<\/li>\n<li>ROA at 5.16%, expected to sustain around 5% exit basis.<\/li>\n<\/ul>\n<\/li>\n<li><strong>New Customer Acquisition And Growth<\/strong>\n<ul>\n<li>Added 7.42 million new customers in H1 FY24.<\/li>\n<li>Targeting 13-14 million new customer additions in FY24.<\/li>\n<li>Added 106 new locations, now at 3,934 locations.<\/li>\n<li>In-app service requests now 35% of total requests.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Product Portfolio Diversification<\/strong>\n<ul>\n<li>Now at 5.97 products per customer versus 5 in FY2021.<\/li>\n<li>Strategy to cross-sell products to existing customer base.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Rural Portfolio Health Analysis<\/strong>\n<ul>\n<li>Bajaj Finance conducted an internal analysis on the growth in personal loans and current loan balances from FY2020 to FY2023.<\/li>\n<li>The analysis showed the number of personal loans grew from 4.5 crore to 10.7 crore from FY2020 to FY2023, with most growth in sub-50k and above 8 lakh loans.<\/li>\n<li>However, sub-50k loans contributed only 13.5% to total loan AUM, indicating potential credit risk. Bajaj Finance has cut 8-14% of business in urban and rural areas for customers with more sub-50k loans.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capital Raise Utilization<\/strong>\n<ul>\n<li>Bajaj will ensure ROE goals are met despite capital raise. Regulatory requirement is to list housing finance business in 8 quarters.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Movement In Asset Quality<\/strong>\n<ul>\n<li>Increase in stage 2 loans and decrease in stage 3 loans in some products this quarter is due to movement of loans from 89 DPD to 90+ DPD because of more days in Q2 2022.<\/li>\n<li>This will normalize next quarter. The phenomenon is unique to Bajaj Finance because most loans are due on 2nd of month, leading to this DPD movement in specific quarters.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Technology Investment<\/strong>\n<ul>\n<li>Strategic investment made in Pennant Technologies, a core lending platform provider for Bajaj Finance.<\/li>\n<li>Partnership since 2016, now migrating fully to Pennant&#8217;s platforms. Robust platforms needed given Bajaj Finance&#8217;s scale.<\/li>\n<li>Strategic for Bajaj Finance to enable Pennant&#8217;s growth from small to medium and large player.<\/li>\n<li>Not just a financial investment, but a strategic one to build capabilities on both sides.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Credit Quality<\/strong>\n<ul>\n<li>Tracking credit bureau data monthly shows moderation in unsecured loan growth rates.<\/li>\n<li>New RBI guidelines expected to moderate loan counts further.<\/li>\n<li>Continued monitoring and orchestrating different levers to control growth and risk.<\/li>\n<\/ul>\n<\/li>\n<li><strong>BHFL Growth and Funding<\/strong>\n<ul>\n<li>Infusion of further capital needed with target leverage ratio of 7x.<\/li>\n<li>Committed to investing further in controlled growth of mortgage business.<\/li>\n<li>Additional 10,000 crore fundraise planned to support growth.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Bajaj Finance Ltd (BAJFINANCE) Q2 FY24 Earnings Concall Financial And Portfolio Metrics AUM grew by INR20,167 crores to INR290,264 crores, up 63% year-on-year. Added 3.58 million new customers, now at just below 45 million total customers. Net NPA remained steady at 31 bps. ROA at 5.16%, expected to sustain around 5% exit [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,1],"tags":[10169,1792,10390],"class_list":["post-154999","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-finance-stocks","tag-earnings","tag-financial-services","tag-retail-loan"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":160615,"url":"https:\/\/alphastreet.com\/india\/bajaj-finance-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":154999,"position":0},"title":"Bajaj Finance Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"April 26, 2024","format":false,"excerpt":"Key highlights from Bajaj Finance Ltd (BAJFINANCE) Q4 FY24 Earnings Concall AUM Growth FY24 delivered record AUM growth of INR 83,236 crores, 34% YoY. Q4 AUM growth was INR 19,647 crores. Growth driven by 36.2 million loans disbursed and 14.5 million new customers added in FY24. BHFL (housing finance subsidiary)\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":158465,"url":"https:\/\/alphastreet.com\/india\/bharti-airtel-ltd-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":154999,"position":1},"title":"Bharti Airtel Ltd Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"February 6, 2024","format":false,"excerpt":"Key highlights from Bharti Airtel Ltd (BHARTIARTL) Q3 FY24 Earnings Concall Financial Performance Revenue impacted by currency devaluations in Africa. India revenue grew steadily at 3% sequentially to over INR 27,800 crores. EBITDA margin remained healthy at 53.9%. Generated operating cash flows of INR 7,250 crores in India. Segment Performance\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":155363,"url":"https:\/\/alphastreet.com\/india\/dixon-technologies-india-ltd-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":154999,"position":2},"title":"Dixon Technologies India Ltd Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"October 26, 2023","format":false,"excerpt":"Key highlights from Dixon Technologies India Ltd (DIXON) Q2 FY24 Earnings Concall Financial Performance Consolidated revenues grew 28% year-over-year to INR4,943 crores in Q2 FY24. Consolidated EBITDA grew 37% to INR200 crores and PAT grew 47% to INR113 crores in Q2 FY24. Expanded ROC to 32.9% and ROE to 24.4%\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":155907,"url":"https:\/\/alphastreet.com\/india\/reliance-industries-limited-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":154999,"position":3},"title":"Reliance Industries Limited Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"November 7, 2023","format":false,"excerpt":"Key highlights from Reliance Industries Limited (RELIANCE) Q2 FY24 Earnings Concall Financial Performance Q2 EBITDA reached record INR45,000 crores, up 30% YoY. Net profit grew 30% YoY to INR20,000 crores. Growth seen across consumer business, digital services, O2C and oil & gas. Retail Business Growth Retail revenues grew 19% YoY\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":157918,"url":"https:\/\/alphastreet.com\/india\/idfc-first-bank-limited-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":154999,"position":4},"title":"IDFC First Bank Limited Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"January 22, 2024","format":false,"excerpt":"Key highlights from IDFC First Bank Limited (IDFCFIRSTB) Q3 FY24 Earnings Concall Deposit Growth Retail deposits grew from INR10,400 crores to INR1,39,431 crores in 5 years. Total deposits grew 4.5X from INR39,602 crores to INR1,76,481 crores. Strong growth despite dropping interest rates. Shows strength of retail franchise and funding. Assumes\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":155070,"url":"https:\/\/alphastreet.com\/india\/indusind-bank-ltd-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":154999,"position":5},"title":"IndusInd Bank Ltd Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"October 19, 2023","format":false,"excerpt":"Key highlights from IndusInd Bank Ltd (INDUSINDBK) Q2 FY24 Earnings Concall Loan Growth Momentum Loan growth continues to be strong at 21% YoY and 5% QoQ, driven by retail segment growing 25% YoY and 6% QoQ. Retail growth driven by healthy disbursements in vehicle and microfinance businesses. Corporate book also\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/154999","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=154999"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/154999\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/154818"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=154999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=154999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=154999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}