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Bajaj Housing Finance, a prominent player in the Indian housing finance market, has announced a strong performance in its second quarter (Q2) of the fiscal year 2025 (FY25), ending September 2024. The company's net profit witnessed a substantial surge of 21%, reaching ₹546 crore, compared to ₹451 crore in the same period last year. This robust growth comes on the heels of the company's successful initial public offering (IPO) in September 2024, which catapulted its market capitalization to approximately ₹1.4 lakh crore. The company's stock performance since its listing has been impressive, initially experiencing a remarkable 136% increase on its debut, effectively doubling investors' capital. However, since its peak of ₹188.5, the stock has retraced some of its gains and currently trades at ₹136.8 on the NSE, with a market capitalization of ₹1.14 lakh crore.
Beyond the headline-grabbing profit increase, several other key performance indicators underscore the company's positive trajectory. Bajaj Housing Finance's revenue from operations for Q2 FY25 reached ₹2,410 crore, signifying a notable 26% increase compared to ₹1,911 crore recorded in the corresponding quarter of the previous financial year. This growth can be attributed to a combination of factors, including a robust demand for housing loans in India, the company's strategic focus on expanding its loan portfolio, and its ability to effectively manage its expenses. Additionally, the company's net interest income (NII) for Q2 FY25 rose by 13%, reaching ₹713 crore, compared to ₹632 crore in Q2 FY24. This increase reflects the company's ability to generate higher interest income from its lending activities while maintaining a disciplined approach to managing its interest expenses.
Another critical metric that highlights the company's financial health is its assets under management (AUM). Bajaj Housing Finance's AUM witnessed a significant 26% increase to ₹1,02,569 crore as of September 30, 2024, compared to ₹81,215 crore on September 30, 2023. This robust growth underscores the company's ability to attract new borrowers and expand its loan portfolio, further solidifying its position as a leading player in the housing finance sector. While the company's share price has experienced some volatility since its listing, the Q2 FY25 financial results demonstrate that Bajaj Housing Finance continues to perform well, driven by strong fundamentals, a positive outlook for the Indian housing market, and its commitment to responsible lending practices.
Source: Bajaj Housing Finance Q2 results: Net profit soars 21% to ₹546 crore; here are five key takeaways