Shares of Bajaj Finance dropped 6.63 percent to Rs 6,758 apiece on the BSE in Wednesday’s intra-day trade despite registering strong growth in net profit by 80 percent year on year (YoY) at Rs 2,420 crore for the fourth quarter due to higher net interest income and lower provisions. that ended in March 2022 (Q4FY22).as analysts remained mixed on the company’s future prospects. Bajaj Finance’s net interest income (NII) surged 30 percent y-o-y to Rs 6,068 crore in the March quarter.
The company said it was its highest ever consolidated net profit. It also reported the highest ever consolidated profit after tax of Rs 7,028 crore for the fiscal year ended March 2022. The other large component of its revenues was in the form of fees and other income of Rs 1,164 crore, up 51 percent from the same period last year. While asset under management (AUM), portfolio composition, and digital transformation will remain key drivers for the stock, premium valuation, and elevated costs may cap upside.
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