Bajaj Finance Ltd Q2’11 Presentation
October 18’2010
Q2’11 Overview
• An excellent quarter aided by strong volume growth in Consumer and
Small and Medium Enterprise business lines.
• Continuous strengthening of provisioning standards. NPA provision
coverage ratio as at September 2010 stood at 75%.
• Q2’11 PAT growth of 143% to Rs 52.8 Crores over Q2’10.
• Continued focus on longer tenor borrowings including Tier II capital.
• Holding credit ratings at FAA+, P1+ and FAAA.
3
Summary Income Statement Q2’11
Q2’ 11
Q2’10
%▲
299.7
195.4
53%
26.7
326.4
83.3
243.1
24.4
219.8
46.0
173.8
9%
49%
81%
40%
Operating expenses
Recovery commission
92.5
10.8
67.8
15.0
36%
(28%)
Provision for doubtful debts & bad debts
61.5
58.5
5%
Profit from ordinary activities before tax
78.3
32.5
141%
Tax Expenses (including Deferred Taxes & FBT)
25.5
10.8
136%
Net Profit/(loss) from ordinary activities after tax
Operating expenses(including recovery commission) as
a % of NII
52.8
21.7
143%
42.5%
47.6%
Return on assets, not annualized
1.0%
0.8%
4.3%
1.9%
(Rs Crores , except EPS)
Income from operations
Other income
Total Income
Interest & other finance charges
Net interest income
Return on equity, not annualized
4
Snapshot – Q2’11
2 Wheelers
64 % QoQ
Disbursements
519
266
104
107
86
61
165
143
355
194
378
113
118
125
112 % QoQ
2 Wheelers
Others
123
239
Disbursements (Rs Crores)
Customers acquired (Nos.
in '000)
Customers acquired
Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 FY-10 FY-09
3221
1577
821
691
817
1364
225
312
393
Revenue
5773
4026
Quarter
472
783
FY-09
49% QoQ
2 per. Mov. Avg. (Revenue (Rs Crores))
Q1'11
Q2'11
Revenue(Rs Crores)
Book Size (Rs. Crores)
4937
Q4'10
469
Revenue (Rs Crores)
2 per. Mov. Avg. (Book Size (Rs Crores))
Q3'10
434
Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 FY-10
Book Size (Rs Crores)
Q2'10
1668
Quarter
Book Size
3700
1656
892
Quarter
3221
Others
916
599
220
250
257
297
326
Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 FY-10 FY-09
Quarter
5
Snapshot – Q2’11
NII
40% QoQ
Operating Expenses % of NII
Operating Expenses as a % of NII
NII (Rs Crores)
NII(Rs Crores)
715
435
174
194
198
224
243
Q2'10
Q3'10
Q4'10
Q1'11
Q2'11
FY-10 FY-09
Quarter
Loss provision
5% QoQ
Operating Expenses as a % of
NII
2 per. Mov. Avg. (Operating Expenses as a % of NII)
2 per. Mov. Avg. (NII (Rs Crores))
Q2'10
Q3'10
Q4'10
61
62
Q1'11
Q2'11
Quarter
43%
41%
45%
51%
Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 FY-10 FY-09
Quarter
FY-10
FY-09
2 per. Mov. Avg. (Net NPA (%))
5.5
4.5
3.3
Net NPA(%)
Loss provision(Rs.Crores)
164
60
38%
Net NPA (%)
2 per. Mov. Avg. (Loss provision (Rs Crores))
261
59
47%
Net NPA Reducing NPA
Loss provision (Rs Crores)
89
48%
2.5
Q4'09
Q1'10
Q2'10
Q3'10
2.2
Q4'10
1.8
Q1'11
1.4
Q2'11
Quarter
6
Snapshot – Q2’11
Pre-tax profit
141% QoQ
ROTA(%) (annualized)
ROTA (%)
2 per. Mov. Avg. (ROTA (%))
2 per. Mov. Avg. (Pre-tax profit (Rs Crores))
4.2
134
71
32
Q2'10
43
35
Q3'10
Q4'10
Q1'11
78
51
Q2'11
FY-10
ROTA(%)
Pre-tax profit( Rs Crores)
Pre-tax profit (Rs Crores)
FY-09
3.0
3.0
2.8
2.7
1.3
Q2'10
Q3'10
Q4'10
Quarter
Q1'11
Q2'11
FY-10
FY-09
Quarter
Capital adequacy
Earnings per share
143 % QoQ
Capital Adequacy Ratio
Earnings per Share(Rs)
2 per. Mov. Avg. (Capital Adequacy Ratio)
2 per. Mov. Avg. (Earnings per Share(Rs))
38.4
Q4'09
35.0
Q1'10
31.7
Q2'10
30.6
Q3'10
Quarter
26.0
Q4'10
23.0
Q1'11
21.0
Q2'11
Earnings per Share(Rs)
Capital Adequacy Ratio
3.9
24.43
12.78
5.93
Q2'10
7.46
6.88
Q3'10
Q4'10
14.42
9.27
Q1'11
Q2'11
FY-10
FY-09
Quarter
7
8