About the Company:
Under the flagship of Bajaj Group, the company is one of the largest players in the consumer segment in India. The company is pioneer in introducing interest-free EMI finance options in more than 50 categories, ranging from consumer durables to lifestyle products to groceries. Apart from consumer finance, the company also has substantial business penetration in SME, commercial and rural lending.
India’s largest Non-Banking Financial Corporation in consumer segment has declared the results for the fourth quarter of financial year ending March 2020.
- QoQ Performance: Consolidated Net sales/ revenue of the company recorded at Rs.7,226.58 crores, increased 2.95% in the March quarter of FY20. Total expenditure (excluding interest and depreciation expenses) is Rs. 3,319.92 millions is increased by 45.04%. EBITDA numbers decreased by 17.40%.
- YoY Performance: The Company has reported 36.49% increase in sales/revenue while expenditure (excluding interest and depreciation expenses) of the company is increased by 116% (more than doubled). EBIDTA numbers increased 3.85%.
- Profitability of the company: Net Profit of the company landed at Rs. 9,4810 crores, decreased by 41.26% QoQ and 19.38% YoY.
- Net Interest Income: For FY20, NII was up by 42% to 16,913 crore from 11,877 crore in FY19.
- Dividend: The Board of Directors have not recommended any final dividend so the interim dividend declared by the company on 21 February 2020, shall be considered as the final dividend for the FY20.
As per Lokesh Sethia, SEBI Registered Research Analyst, major NBFC in consumer segment has posted a slippage in net profits by 19% due to ongoing Covid-19 that has forced for job losses and unability of the consumers to pay their monthly installments on time. The company has considered 3,929 crore as an expected loss in FY20 against 1,501 crore in FY19. Customer franchise has been increased by 24%. New Loan book is likely to remain under pressure as consumers will stay with restricted purchasing power in upcoming quaters. We advise to you 'BUY' for a limited upside of Rs. 2,500 for one year.