BAJAJ Finance Q1FY21 conference call Takeaways!

thumbnail
Reading Time: 2 minutes


  • Q1FY21 was a pandemic quarter. The focus was on capital preservation and employee safety.
  • Till the 10th of May, complete business operations were closed. 2302 locations are active now representing 85% of locations.
  • Expectations – 75+ cities to be back at pre COVID level by September, 40+ cities by October.
  • 10-12% AUM growth expectation in FY21.
  • Bajaj finance’s new product Health card which launched recently had sales of 5.33 lakh cards with a net fee income of Rs 35 crs in Q1FY21. (Having multiple lines of business, it keeps on tweaking them to deliver growth or beat slowdown)
  • Management convinced towards never wasting a crisis as it throws many opportunities and crisis brings about many structural changes.
    • One line item that may have a lot of impacts, one of them is Operating expenditure (OpEx)
    • OpEx to NIM can go to 28% from 31.5% in FY22 as they go back to normal levels again.
  • Risk-driven company: Provisions of 3.5k cr mostly done to keep a fully costed P&L.
  • The wallet has 15 mn takers, & total customers are 43mn.
    • There should be a day when all our customers are wallet customers and that’s the thought.
    • Credit cards, they would like to be amongst the top 3 as they have the customer base. Rbl strategic partner and this segment is a good profit pool for them (as RBL assumes the credit risk)
  • Bounce rates dropping 3-4% every month in the past 3 months. Collection efficiency increasing 8-10% and July also they expect the same.
  • Gold loans started in rural markets 3-4 years ago. 18 months ago they realised it doesn’t really work. 70-80 cr net assets per month, rapidly expanding in 75+ markets. Offered in 400 cities as a standard offering. They will grow this much more rapidly.
Also Read on FinMedium:  Strong Core for flourishing branches. | by Mystic Wealth

Read Next: 

Everything you need to know about Bajaj Finance! We discuss its origins, moats, loan book, 10-year history, and what hurts this stock!

Basics of Banking – What does a Bank do? What do all the complex banking terms mean? And how to pick a banking stock?

Disclaimer

If you are looking for investment advice, click here and we will reach out to you within 24 hours.



Source link

Every Wednesday and Saturday, we send Info-Graphic and FinMedium Weekly Digest newsletters to our 25000+ Subscribers.

Join Them Now!

Please Share :)
JST Investments
JST Investments is a Mumbai-based investment firm that believes in long-term wealth creation. It's a brainchild of Aditya Kondawar, Aditya Shah, and Anish Moonka.
Back To Top