Bajaj Finance shares drop over 5%; mcap falls by Rs 22,984 crore

New Delhi: Shares of Bajaj Finance on Tuesday tanked over 5 per cent after the company's December quarter earnings failed to impress investors.

The stock declined 5.17 per cent to settle at Rs 6,815.60 apiece on the BSE. During the day, it tumbled 5.30 per cent to Rs 6,806.

On the NSE, it tanked 5 per cent to Rs 6,825 per piece.

The company's market valuation eroded by Rs 22,984.27 crore to Rs 4,21,219.81 crore.

It was the biggest laggard among the Sensex and Nifty firms.

The 30-share BSE Sensex fell by 801.67 points or 1.11 per cent to settle at 71,139.90. The Nifty declined 215.50 points or 0.99 per cent to 21,522.10.

Bajaj Finance on Monday reported a 22 per cent increase in consolidated net profit to Rs 3,639 crore for the third quarter ended December 2023.

The company earned a net profit of Rs 2,973 crore in the same period a year-ago.

"Bajaj Finance's Q3 FY24 PAT at Rs 3640 crore, grew 22 per cent YoY, a tad below our estimates of Rs 3770 core," according to a report by JM Financial Institutional Securities.

Total income increased to Rs 14,166 crore for the quarter under review from Rs 10,789 crore in the year-ago period, Bajaj Finance said in a regulatory filing.

The consolidated assets under management rose by 35 per cent to Rs 3,10,968 crore at the end of December 2023 compared to Rs 2,30,842 crore in the third quarter of last year.

Net interest income grew by 29 per cent to Rs 7,655 crore as against Rs 5,922 crore in the third quarter of FY23.

Gross Non-Performing Assets (NPAs) of the company came down to 0.95 per cent from 1.14 per cent during the same period a year ago.

Similarly, net NPAs also declined to 0.37 per cent compared to 0.41 per cent at the end of third quarter of the previous fiscal.