For F.Y. 2024,
Total Income - Interest Expended = 22,453 crores.
Now in Q1 this year, this number has grown by 25% YoY.
If they keep growing at same 25%,
This number will be around 43850 crores in F.Y. 2027.
With 65% Cost to Income PPOP can be around 15,350 crores.
And with 1.65% credit cost on this, after provisions and Tax, PAT can be in the range of 6500-7000 crores.
So 1.4% ROA in F.Y. 2027 is theoretically possible atleast.
Please rectify if you find anything wrong with these assumptions and calculation.
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From 2015 to 2020 Bajaj Finance doubled PAT every 2 years,
Let’s hope that type of golden period begin for IDFC First 2025 onwards…
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