Shares of the Pune-based non-banking finance company - Bajaj Finance - fell as much as 5.2 per cent to hit an intraday low of Rs 5,681.20 on the BSE after the company presented its mid-quarter update for the first quarter of current financial year post market hours on Friday. Bajaj Finance said that due to the second wave of Covid-19 and consequent lockdowns across the country its B2B and auto finance businesses were most affected.
"B2B and Auto Finance businesses were most affected due to strict lockdowns in majority of states. These businesses delivered 70 per cent of their planned volumes in April 2021 as multiple states started imposing lockdowns from mid-April. Their volumes dropped to 40 per cent in May 2021. Most states have indicated continued lockdown till 7th or 15th June. With expected reopening, June should be much better," Bajaj Finance said in an investor presentation.
Bajaj Finance has estimated an impact of Rs 4,000-5,000 crore to its assets under management (AUM) growth plan for the current fiscal year.
Meanwhile, the company during the current quarter witnessed a marginal increase in equated monthly instalments (EMI) bounce rates on a sequential basis sue to second wave off Covid-19. "Average EMI bounce rates in Q1 FY22 were approximately 1.08 times of Q4 FY21," Bajaj Finance said.
"The company estimates an incremental credit cost of Rs 1,100-1,300 crore versus planned credit cost in FY2022 on account of disruption caused by the second wave," the Pune-based company added.
As of 2:01 pm, Bajaj Finance shares traded 4.45 per cent lower at Rs 5,726, underperforming the Nifty which surged to record high.