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Results
07-Feb-24
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Analysis
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Max Financial Services
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VNB and VNB margin eases
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The
income from operation of Max Financial Services increased 38.90% to Rs 12355.68
crore in Q3FY2024. The revenue of Life Insurance (99.94% of total revenues)
segment has gone up 39.07% to Rs 12,352.93 crore. The revenue of Business
Investments (0.06% of total revenues) segment has gone down 63.13% to Rs 7.36
crore.
PBIT of
Life Insurance segment fell 33.61% to Rs 208.26 crore (accounting for 99.83% of
total PBIT). PBIT of Business Investments segment fell 95.14% to Rs 0.36 crore
(accounting for 0.17% of total PBIT).
The
Capital employed for Life Insurance (36.66% of total) segment has gone up
14.74% to Rs 3,940.93 crore. The Capital employed for Business Investments
(63.34% of total) segment has gone down 0.10% to Rs 6,810.02 crore.
Overall
OPM eased to 1.69% in Q3FY2024 from 3.62% in Q3FY2023, leading to 35.03% fall
in operating profit to Rs 209.36 crore. Other expenditure as a percentage of
total income moved up to 98.17% from 96.31% in Q3FY2024. The staff cost as a
percentage of total income increased to 0.14% from 0.07% in Q3FY2024.
Other
income increased 24.38% to Rs 3.52 crore. Interest cost increased 50.53% to Rs
14.15 crore. Depreciation moved down 33.33% to Rs 0.76 crore. After which, PBT
moved down 37.06% to Rs 197.97 crore.
The
effective tax rate declined to 13.52% in Q3FY2024 compared to 14.37% in
Q3FY2023..Provision for tax was expense of Rs 26.76 crore, compared to Rs 45.19
crore. Profit after tax fell 36.44% to Rs 171.21 crore.
There was
profit attributable to non-controlling interest of Rs 22.65 crore in Q3FY2024
as compared to profit of Rs 44.41 crore in Q3FY2023. The share of profit of
associate were nil in both the periods. Finally, Net profit attributable to
owners moved down 33.96% to Rs 148.56 crore.
Business
performance
In Q3FY24, Individual Adjusted First Year Premium
saw an increase of 18%, compared to 9% growth in the private sector. This
growth was fuelled by strong growth in proprietary channels, Protection, Health
& Annuity business. Proprietary channels new business premiums (APE) grew
by 47% in Q3FY24on y-o-y basis which was driven by both online and offline
distribution channels. As a result, contribution of Proprietary channels to
total new business premium increased from 32% to 40% inQ3FY24.
In Q3FY24, Max Life launched Smart Total Elite Protection (STEP) exclusively for affluent segment
with an Inbuilt Terminal
Illness Cover and option to get
back all premiums paid back at no cost. This resulted in growth of 82% in
Retail Protection and Health segment in Q3FY24 and 65% in 9MFY24 on y-o-y.
Group Credit Life (GCL) sales grew by 120% in Q3FY24 & 59% in 9MFY24.
Overall protection mixes improved from 13% in 9MFY23 to 16% in
9MFY24.
Max Life’s focus on retirement led to growth of 52%
in the Annuity business in 9MFY24. Max Life Pension Fund Management Limited AUM
increased to Rs 507 crore as of Dec’23 against Rs 22 crore inDec’22.
Max Life achieved Value of New Business (VNB) of Rs
1152 crore in 9MFY24, down 2% y-o-y. New Business Margin (NBM) stands at 25.3%
in 9MFY24.
Max Life reported an Embedded Value of Rs 18709 crore,
while the Operating Return on EV (RoEV) over 9MFY24 stood at 18.6%.
Max Life’s assets under management (AUM) were Rs 142621
crore end December 2023, Up 20% over the previous year.
Max Life has expanded distribution capability by
signing 8 new partners in 9MFY24. Max Life consistently maintained industry
best claims paid ratio at 99.51% in FY23.
Prashant Tripathy, CEO and Managing Director, Max
Life Insurance, said, “Building on our strong base, we delivered another
solid quarter. Innovation and expanding proprietary channels have fueled our
business growth in the quarter. We remain committed to sustainable growth
through strategic partnerships and market expansion, delivering value to
stakeholders.”The company has received approval from IRDAI for capital infusions of Rs 1632 crore into the company from Axis Bank.
Financial
performance 9MFY2024
The
income from operation of Max Financial Services increased 47.50% to Rs 31688.41
crore in 9MFY2024. The revenue of Life Insurance (99.92% of total revenues)
segment has gone up 47.71% to Rs 31,680.73 crore. The revenue of Business
Investments (0.08% of total revenues) segment has gone down 55.63% to Rs 23.98
crore.
PBIT of
Life Insurance segment rose 3.61% to Rs 482.44 crore (accounting for 101.42% of
total PBIT). PBIT of Business Investments reported loss of Rs 6.76 crore
(accounting for (-) 1.42% of total PBIT) compared to profit of Rs 17.82 crore.
The
Capital employed for Life Insurance (36.66% of total) segment has gone up
14.74% to Rs 3,940.93 crore. The Capital employed for Business Investments
(63.34% of total) segment has gone down 0.10% to Rs 6,810.02 crore.
Overall
OPM eased to 1.51% in 9MFY2024 from 2.27% in 9MFY2023, leading to 1.80% fall in
operating profit to Rs 478.19 crore. Other expenditure as a percentage of total
income moved up to 98.42% from 97.62% in 9MFY2024. The staff cost as a
percentage of total income declined to 0.09% from 0.12% in 9MFY2024. The
provisions as percentage of total income declined to 0.02% from 0% in 9MFY2024.
Other
income increased 131.93% to Rs 31.38 crore. Interest cost increased 16.34% to
Rs 32.83 crore. Depreciation moved down 28.13% to Rs 2.53 crore. PBT moved up
1.16% to Rs 474.21 crore.
The
effective tax rate declined to 6.65% in 9MFY2024 compared to 14.79% in 9MFY2023.
Provision for tax was expense of Rs 31.55 crore, compared to Rs 69.32 crore. Profit
after tax rose 10.82% to Rs 442.66 crore.
There was
profit attributable to non-controlling interest of Rs 58.53 crore in 9MFY2024
as compared to profit of Rs 66.85 crore in 9MFY2023. The share of profit of
associate were nil in both the periods. Finally, Net profit attributable to
owners rose 15.50% yoy to Rs 384.13 crore in 9MFY2024.
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Max Financial Services : Consolidated Results
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Particulars
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2312 (3)
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2212 (3)
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Var %
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2312 (9)
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2212 (9)
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Var %
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2303 (12)
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2203 (12)
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Var %
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Income from Operations
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12355.68
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8895.52
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39
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31688.41
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21483.30
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48
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31412.67
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31181.21
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1
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OPM (%)
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1.69
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3.62
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1.51
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2.27
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1.75
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1.32
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OP
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209.36
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322.25
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-35
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478.19
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486.97
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-2
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550.90
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412.02
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34
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Other Inc.
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3.52
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2.83
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24
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31.38
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13.53
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132
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18.39
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6.37
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189
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PBDIT
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212.88
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325.08
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-35
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509.57
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500.50
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2
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569.29
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418.39
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36
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Interest
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14.15
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9.40
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51
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32.83
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28.22
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16
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37.46
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24.74
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51
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PBDT
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198.73
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315.68
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-37
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476.74
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472.28
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1
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531.83
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393.65
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35
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Depreciation
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0.76
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1.14
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-33
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2.53
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3.52
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-28
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4.63
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5.00
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-7
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PBT before EO
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197.97
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314.54
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-37
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474.21
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468.76
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1
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527.20
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388.65
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36
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Tax Expenses
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26.76
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45.19
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-41
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31.55
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69.32
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-54
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75.31
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70.25
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7
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PAT
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171.21
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269.35
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-36
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442.66
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399.44
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11
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451.89
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318.40
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42
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Non-controlling interest
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22.65
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44.41
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-49
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58.53
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66.85
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-12
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73.41
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65.03
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13
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Share of P&L from Asso.
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0.00
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0.00
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-
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0.00
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0.00
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-
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0.00
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0.00
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-
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Net profit
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148.56
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224.94
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-34
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384.13
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332.59
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15
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378.48
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253.37
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49
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EPS (Rs)*
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17.3
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26.2
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14.9
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12.9
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11.0
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7.4
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EV (Rs)/share
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544.6
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450.5
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544.6
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450.5
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473.3
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410.7
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* Annualised on current equity of Rs 68.71 crore, Face value of
Rs 2, Excluding extraordinary items.
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Figures in Rs crore
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Source: Capitaline Corporate Database
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Previous News |
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(
Results
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