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Bajaj Auto Finance Ltd (BAFL) reported its highest profit in history for Q3 2010, with a remarkable PAT growth of 142% to ₹27.3 crores compared to the same quarter last year. The consumer financing segments, particularly in two-wheelers and durables, have shown strong performance, aided by favorable festival season demand. BAFL is set to launch new financing products for construction equipment and retail loans against shares in Q4 2010. The company has improved its asset-liability management and maintains strong credit ratings.
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Bajaj Auto Finance Ltd Q3’10 Presentation February 20, 2010
BAFL product portfolio Cross-Sell Cross- Sell To be Launched in April 2010 BAFL Cross-Sell Launched in December 2008 Construction Equipment Launched in June 2008 To be launched in April 2010 Launched in June 2007 Most diversified NBFC in India
Q3’10 overview • Excellent quarter for BAFL. Highest profit in its history. PAT Growth of 142% to 27.3 Crs over corresponding quarter in Q3’09. • Good momentum in consumer businesses viz. two-wheelers financing & durable financing. Festival season has been very good. • Small businesses picking up momentum as well with improved demand & credit flow. • Cost of funds have remained benign. Have strengthened our ALM. Increased borrowings in longer maturities to improve ALM further. • Improvement in portfolio metrics across businesses. New vintages performing superior. • Preparing to launch Construction equipment financing & Loan against shares retail business in Q4’10. • Holding credit ratings at FAA+, P1+ and FAAA.
Snapshot – Q3’10 Revenues up 58% QoQ NII up 67% QoQ Operating Expenses % of NII Disbursements up 97% QoQ
Snapshot – Q3’10 Pre-tax profit up 169% QoQ. Net NPA Reducing NPA Loss provision up 33% QoQ ROTA(%) Stable & Growing ROTA
Snapshot – Q3’10 Portfolio Mix Earnings per share up 142 % QoQ. Capital adequacy increasing leverage Book Size increasing book size