The cumulative performance of the Non-Banking Finance Companies (NBFCs) for the second quarter of the financial year 2024 has showcased an uptick.
For this quarter, the sector remains in a green, marking spike in profit and revenue. The analysts expected the quarter to be favourable for NBFCs, with buoyant disbursement and Assets Under Management (AUM) growth in focused segments.
Motilal Oswal Financial Services had also raised the bar for the non-bank lenders saying they are projected to see a 26% year-on-year increase in net interest income and a 35% year-on-year rise in net profit for the September quarter.
Here’s a quick view of how was the September quarter of Financial Year 2024 for the NBFCs:
Bajaj Finance
For the September quarter, Bajaj Finance witnessed growth in both revenue and profit compared to the previous year. The topline increased by 34.21% year-on-year (YoY), while the profit rose by 27.7% YoY.
Compared to the previous quarter, the company reported a growth of 7.04% in revenue and 3.31% in profit.
Bajaj Finance’s operating income showed an upward trend, increasing by 4.59% QoQ and 26.84% YoY.
L&T Finance
L&T Finance reported a significant growth in both revenue and profit compared to the previous year with the topline increased by 7.07% and the profit rose by an impressive 46.42% year-on-year (YoY) for the September quarter.
Compared to the previous quarter, L&T Finance Holdings experienced a growth rate of 5.14% in revenue and a 12.09% increase in profit. Operating income was up by 1.4% QoQ and increased by 3.01% YoY.
Poonawalla Fincorp
Poonawalla Fincorp Ltd reported a net profit of Rs 1,258.9 crore for the second quarter. The company registered a massive jump in net profit due to an exceptional gain of Rs 1,221.2 crore in the second quarter.
Net interest income (NII) jumped 18.7%, coming at Rs 529.2 crore against Rs 445.9 crore in the corresponding quarter of FY23.
Mahindra Finance
Mahindra Finance reported a profit before tax of Rs 316.28 crore for the quarter ending on September 30. This represents a 48.21% decline compared to the Rs 610.71 crore reported in Q2 FY23.
The credit cost during Q2 of FY24 was at Rs 627 crore as compared to Rs 198 crore in Q2 of FY23.
Muthoot Finance
Muthoot Finance reported a smaller-than-expected rise in Q2FY24. Its profit rose 14.3% to Rs 991 crore for the quarter ended Sept 30. Company’s finance costs rose by more than 28%, taking total expenses nearly 30% higher to Rs 1,743 crore.
Standalone loan assets under management, however, grew 21% to Rs 690,020 crore for the half-year of 2023 on steady demand for loans.
Muthoot’s interest income rose nearly 22% to Rs 3,015 crore.
