Bajaj Finance shares dropped over 2% after the company reported results that missed market expectations for the June 2024 quarter. The company’s net profit rose 14% year-on-year to ₹3,912 crore, up from ₹3,437 crore in the same quarter last year. Revenue for the quarter also increased, reaching ₹16,098 crore compared to ₹12,497 crore in June 2023.
Despite the growth in profit and revenue, Bajaj Finance’s core earnings fell short of expectations, mainly due to a decline in net interest margin (NIM), which decreased by 23 basis points year-on-year and quarter-on-quarter. This was less than the 30-40 basis points improvement the company had guided for the first half of the fiscal year. Additionally, the credit cost was higher than expected at 2%, compared to the 1.75-1.85% guidance, according to Citi.
As of 12:30 PM, Bajaj Finance shares were trading 2.26% lower at ₹6,575.00 on the NSE.
