Bajaj Housing Finance

Bajaj Housing Finance Limited (BHFL) – Q4 FY25 Earnings Concall Detailed Note Date of Call: April 2025 --- ### Financial Performance and Key Metrics #### AUM Growth - AUM: ₹1,14,684 crore as of 31 March 2025, up 26% YoY. - Q4 AUM Addition: ₹6,370 crore vs ₹5,442 crore in Q4 FY24. #### Profitability - Q4 PAT: ₹587 crore, up 54% YoY. - FY25 PAT: Grew 25%. - ROA: 2.4% annualized. - ROE: 12.1% for Q4; 13.4% for FY25. #### Asset Quality - GNPA: 0.29%. - NNPA: 0.11% (improved from 0.13% sequentially). - Credit Cost: 0.12% in Q4 FY25 (vs 0.18% YoY); full-year at 0.09%. #### OPEX Efficiency - OPEX/NTI: 21.7% in Q4 FY25 (vs 27.1% YoY); 20.8% for FY25 (vs 24% in FY24). #### Capital Adequacy - CAR: ~28.25%. - PBC Ratio: 63.28% (above regulatory requirement of 60%). - Net Worth: ₹19,932 crore. #### Branch Network - Locations: 174. - Branches: 216. --- ### Business Mix and Disbursements #### Product-wise Growth - Home Loans: 22% YoY growth. - LAP: 28%. - LRD: 24%. - Developer Finance: 49%. #### Portfolio Mix (as of Mar 2025) - Home Loans: 56.2%. - LAP: 10.7%. - LRD: 19.1%. - Developer Finance: 12.5%. #### Disbursements - Q4 FY25: ₹14,254 crore, up 25% YoY. #### Near Prime & Affordable Housing SBU - Launched last quarter; growing steadily and in line with expectations. --- ### Funding, Cost of Funds, and ALM #### Cost of Funds - Flat QoQ at 7.9%. - Borrowing Mix: 49% money market instruments, 41% bank borrowings, 10% NHB refinance. #### Liabilities - NCD Share: Increased to 45% (from 35% YoY). - Bank Borrowings: ~₹34,000 crore; 23-24% MCLR-linked. #### Hedging - Hedged ~₹2,300 crore of fixed-rate bonds. #### ALM Risk Management - Assignments: 12-15% of book used for ALM match-funding. - Home Loan Maturity: 6-7 years. - Developer Finance Maturity: <24 months.