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BAJAJ FINANCE LTD.

NSE : BAJFINANCEBSE : 500034ISIN CODE : INE296A01024Industry : Finance - NBFCHouse : Bajaj
BSE3175.3557.55 (+1.85 %)
PREV CLOSE ( ) 3117.80
OPEN PRICE ( ) 3117.80
BID PRICE (QTY) 0.00 (0)
OFFER PRICE (QTY) 3175.35 (2)
VOLUME 235183
TODAY'S LOW / HIGH ( )2998.60 3200.00
52 WK LOW / HIGH ( )1912 3761.35
NSE3174.3560.25 (+1.93 %)
PREV CLOSE( ) 3114.10
OPEN PRICE ( ) 3118.00
BID PRICE (QTY) 0.00 (0)
OFFER PRICE (QTY) 3174.35 (455)
VOLUME 3143787
TODAY'S LOW / HIGH( ) 2998.00 3200.00
52 WK LOW / HIGH ( )1912.2 3762
AnalystEmailIdshweta.padhi@narnolia.com
AnalystNameSweta Padhi
BSECode500034
CP1DesignationMD
CP1NameMr. Rajeev Jain
CP2DesignationCFO
CP2NameMr. Sandeep Jain
CP3DesignationNA
CP3NameNA
CallDate16 May 2019
DescriptionIncremental COF (conso) stood at 8.3% from 8.2% QoQ. Deposit rate dropped by 15 bps which is effective from 15 may. Management has been successfully able to raised money upto Rs 3000 Cr in March @ coupon rate of 8.50-8.60%. Management has received standalone investment rating of BBB- from S&P for ECB program. It plans to diversify its liability borrowings via ECB route. Credit cards partnership may rise. BAJFINANCE aims to remain among top 3,4 card issuers in next 5 year horizon. Fee income to Net income is expected to remain stable with +-50 bps. Aggregate premium stood at Rs 950 Cr from life, health & General. Out of which BALIC is Rs 510 Cr & BAGIC is Rs 400 Cr.. Bajaj Housing Finance has Rs 17600 Cr of asset. Capital of Rs 1000 Cr was infused in the BHFL. Std Mortgage business of Rs 17000 is expected to completely wind down by Mar 2021. ROE of BHFL is expected to be 14-15% with 8-9X gearing. Developer segment (Conso) stood at Rs 1200 Cr. BAJFINANCE has 140 unique relationship. Average ticket size ranging from Rs 25-30 Cr. BAJFINANCE never lend more than Rs 45-50 Cr. Management has limit out of Mumbai exposure under Rs 75 lakh & also restrain from funding project on land stage. Going ahead mortgage business is expected to become 36-38% & commercial segment is expected to be 12-15% with delivering RoA in the range of 3.3-3.5 & RoE of 18-20%. Top 8 cities continue to represent a very good opportunity & high risk. Top 35+ cities is expected to provide growth momentum Professional loans are expected to grow in top 8 cities so as to limit over leverage. Average ticket is at Rs 1163000 from Rs 1118000 YoY. Micro SME continues to struggle across 600 cities. Delhi portfolio has down by 20%. Credit cost stands at 200 bps for the portfolio presently. GNPA would have gone by 8-9 bps QoQ without IL&FS exposure. Consumption outlook has slowed down from the month of April. Category expansion, geographic expansion & increase in share of wallet of client will remain the core focus. Market share in auto finance has increased from 30-34% to 44% LAP is in red category mainly because of IL&FS, other than collection efficiency of IL&FS collection stood at 99.32%. 67% of new loan booked are existing customer (B2B Customers). Only 10% of B2B customer takes personal loan. Coverage ratio has reduced as the there is improvement in the loan performance. Management is planning to improving risk. Cards in force stood at 0.105 Cr. EMI franchise stood at 1.9 Cr with 0.85 Cr customers are on the wallet.
SubjectQ4FY19 EARNING CONFERENCE CALL

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