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Results
27-Jul-23
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Analysis
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Bajaj Finserv
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Net profit jumps 48% in Q1FY24
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The income from operation of Bajaj
Finserv increased 48.02% to Rs 22957.2 crore as on 30 June 2023. The revenue of
Insurance (44.45% of total revenues) segment has gone up 60.19% to Rs 10,706.78
crore. The revenue of Windmill (0.03% of total revenues) segment has gone down
18.84% to Rs 6.46 crore. The revenue of Investments & Others (3.62% of
total revenues) segment has gone up 88.28% to Rs 872.02 crore. The revenue of
Retail financing (51.90% of total revenues) segment has gone up 34.66% to Rs
12,500.54 crore.
PBIT of Insurance segment rose
519.77% to Rs 545.83 crore (accounting for 10.65% of total PBIT). PBIT of
Windmill segment fell 23.36% to Rs 3.38 crore (accounting for 0.07% of total
PBIT). PBIT of Investments & Others reported loss of Rs 168.20 crore
(accounting for (-)3.28% of total PBIT) compared to loss of Rs 193.76 crore. PBIT
of Retail financing segment rose 28.39% to Rs 4,744.36 crore (accounting for
92.57% of total PBIT).
The Capital employed for Insurance
(5.32% of total) segment has gone up 12.40% to Rs 16,626.05 crore. The Capital
employed for Windmill (0.01% of total) segment has gone down 8.83% to Rs 33.97
crore. The Capital employed for Investments & Others (0.52% of total)
segment has gone down 2.95% to Rs 1,632.80 crore. The Capital employed for
Retail financing (94.14% of total) segment has gone up 34.85% to Rs 2,93,971.46
crore.
Overall OPM eased to 40.71% as on 30
June 2023 from 40.72% as on 30 June 2022, leading to 47.98% rise in operating profit
to Rs 9,345.28 crore. Other expenditure as a percentage of total income moved
up to 44.25% from 41.58% as on 30 June 2023. The staff cost as a percentage of
total income declined to 10.63% from 12.75% as on 30 June 2023. The provisions
as percentage of total income declined to 4.41% from 4.95% as on 30 June 2023.
Interest cost increased 56.81% to Rs
4020.41 crore. Depreciation moved up 28.63% to Rs 202.3 crore. PBT moved up
42.52% to Rs 5,122.57 crore. The effective tax rate declined to 27.64% as on 30
June 2023 compared to 28.28% as on 30 June 2022. .Provision for tax was expense
of Rs 1415.95 crore, compared to Rs 1016.32 crore. Profit after tax rose 43.78%
to Rs 3,706.62 crore.
There was profit attributable to
non-controlling interest of Rs 1,766.79 crore as compared to Rs 1,268.21 crore.
Finally, Net profit attributable to owners moved up 48.36% to Rs 1,942.63
crore.
Business highlights:
Bajaj
Finance
Total income
for Q1FY24 rose 35% to Rs 12,501 crore against
Rs 9286
crore in Q1FY23. Profit after tax for Q1FY24 increased by 32R to Rs 3437
crore against Rs 2,596 crore in Q1FY.23 led
by robust AUM growth. higher net interest income and better
asset performance.
This includes
profit after tax of its 100% mortgage subsidiary, BHFL of Rs 462
crore in Q1FY24 against Rs 316
crore in Q1FY23 - an increase of 46%.
Assets Under Management
(AUM) as on 30 June 2023 was Rs 270,097 crore against Rs 204018 crore as on 30
June 2022 - an increase of 32%. This includes AUM of
Rs 74124 crore of BHFL. which recorded a growth of 29% over the AUM as
on 30 June 2022.
Gross NPA and Net NPA as
on 30 June 2023 stood at 0.87% and 0.31% respectively as
against 1.25% and 0.51% as on 30 June 2022. Provisioning coverage ratio on stage 3 assets is 65%. BFL holds a
management and macro-economic overlay in provisions of Rs 840 crore
as on 30 June 2023.
Capital adequacy ratio
(including Tier-II capital) as on 30 June 2023 stood at 24.61%. The
Tier-I capital stood at 23.01%. For
BHFL. the capital adequacy ratio (including Tier-II capital)
stood at 22.52%.
Bajaj
Allianz General Insurance Company
Gross written
premium for Q1FY24 increased by 23% to Rs 3,834 crore against
Rs 3119 crore in Q1FY23.
Excluding
tender-driven crop and government health insurance premium, BAGIC`s
gross written premium increased by 27% to Rs 3,834 crore in Q1FY24 from Rs
3009 crore in Q1FY23.
Net earned premium for
Q1FY24 stood at Rs 1,938 crore against Rs 1852
crore in Q1FY23.
Claim ratio decreased to
74.3% in Q1FY24 against
77.9% in Q1FY23. The decrease in claim ratio is attributable to lower claims
in motor and commercial lines.
Combined ratio
improved to 100.7% in Q1FY24 against104.6% in Q1FY23.
Underwriting loss stood at Rs
42 crore for Q1FY24 against loss of Rs 61 crore in Q1FY23.
Investment and other income (net)
for Q1FY24 stood at Rs 597
crore against Rs 612 crore in
Q1FY23. Profit on sale of investments was
lower by Rs 120 crore (before tax) in Q1FY24.
Excluding profit on sale of investments. investment and
other income (net) has risen 24%.
Profit after tax for Q1FY24 stood at Rs 415
crore against Rs 411 crore in Q1FY23.
As on 30 June 2023,
solvency ratio was 388%, which is well above the minimum regulatory requirement
of 150%.
Assets Under Management
(AUM). represented by cash and investments as on 30 June
2023 stood at Rs 28,611 crore
against Rs 25,362 crore as on
30 June 2022 – an increase of 13%
Bajaj
Allianz Life Insurance Company
Gross written
premium for Q1FY24 stood at Rs 4058 crore against Rs 4369 crore in Q1FY23. Excluding group
fund business. gross written premium increased by 22%.
New business premium
for Q1FY24 stood at Rs 2159 crore against Rs 2917
crore in Q1FY23
Individual rated
new business premium was Rs 1028 crore in Q1FY24
against Rs 895 crore in Q1FY23 - an increase of 15%.
Group protection
new business stood at Rs
650 crore in Q1FY24 against
Rs 574 crore in Q1FY23 - an increase
of 13%.
Group fund new business stood at Rs 364
crore in Q1FY24against Rs 1.339 crore in Q1FY23.
Renewal premium for Q1FY24 was Rs 1,899 crore against
Rs 1.452 crore in Q1FY23 – an increase of 31%
Shareholders` profit
after tax during Q1FY24 stood at Rs 155 crore against Rs 124 crore in Q1FY23 - an increase of 25%.
Net new business value
(NBV). which is the metric used to measure profitability of life insurance
businesses was at Rs 94 crore in Q1FY24 against Rs 135 crore in Q1FY23. Mainly on account of adverse effect of
interest rate changes and impact of product mix change.
Solvency ratio stood
at a healthy 475R as on 30 June
2023 as against the minimum regulatory requirement of 150%.
Assets Under Management (AUM), represented
by total investments stood at Rs 95317 crore as on 30 June 2023 against Rs 83072 crore as on 30
June 2022 - an increase of 15%.
Financial Performance FY2022
The income from operation increased 20.03% to
Rs 80687.06 crore in FY2023. The revenue of Insurance (48.65% of total
revenues) segment has gone up 10.21% to Rs 40867.25 crore. The revenue of
Windmill (0.03% of total revenues) segment has gone down 21.17% to Rs 23.16
crore. The revenue of Investments & Others (2.03% of total revenues)
segment has gone up 71.18% to Rs 1704.11 crore. The revenue of Retail financing
(49.29% of total revenues) segment has gone up 30.86% to Rs 41405.69 crore.
PBIT of Insurance segment fell 31.81% to Rs
1212.61 crore (accounting for 7.21% of total PBIT). PBIT of Windmill segment
rose 65.98% to Rs 10.49 crore (accounting for 0.06% of total PBIT). PBIT of
Investments & Others reported loss of Rs 580.76 crore (accounting for (-)
3.45% of total PBIT) compared to loss of Rs 514.10 crore. PBIT of Retail
financing segment rose 61.69% to Rs 16168.79 crore (accounting for 96.18% of
total PBIT).
The Capital employed for Insurance (5.65% of
total) segment has gone down 1.99% to Rs 16288.56 crore. The Capital employed
for Windmill (0.01% of total) segment has gone down 4.62% to Rs 33.02 crore.
The Capital employed for Investments & Others (0.45% of total) segment has
gone up 38.74% to Rs 1301.13 crore. The Capital employed for Retail financing
(93.88% of total) segment has gone up 29.68% to Rs 270469.55 crore.
Overall OPM has increased to 36.79% in FY2023
from 31.68% in FY2022, leading to 39.39% rise in operating profit to Rs
29688.39 crore. The provisions as percentage of total income declined to 4%
from 7.27% in FY2023. Other expenditure as a percentage of total income moved
down to 48.34% from 51.28% in FY2023. The staff cost as a percentage of total
income increased to 10.87% from 9.76% in FY2023.
Other income declined 97.66% to Rs 0.77
crore. There is 28.46% rise in interest cost at Rs 12201.42 crore and 20.45%
rise in depreciation to Rs 677.8 crore, Profit before tax increased 49.14% to
Rs 16809.94 crore. There is no extraordinary item. After which, PBT increased
49.14% to Rs 16809.94 crore.
The effective tax rate increased to 27.37% in
FY2023 compared to 26.24% in FY2022. Provision for tax was expense of Rs
4601.59 crore, compared to Rs 2957.05 crore. Profit after tax jumped 46.84% to
Rs 12208.35 crore.
There was profit attributable to
non-controlling interest of Rs 5792.26 crore in FY2023 as compared to Rs
3756.76 crore in FY2022. Finally, Net profit attributable to owners rose 40.83%
yoy to Rs 6417.28 crore in FY2023.
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Bajaj Finserv:
Consolidated Results
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Particulars
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2306 (3)
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2206 (3)
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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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23279.98
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15888.26
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47
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58446.63
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49544.41
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18
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OPM (%)
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40.14
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39.75
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0
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36.84
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30.69
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0
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OP
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9345.28
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6315.33
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48
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21533.31
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15205.80
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42
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Other Income
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0.00
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0.12
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-100
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1.10
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33.27
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-97
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PBDIT
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9345.28
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6315.45
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48
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21534.41
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15239.07
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41
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Interest (Net)
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4020.41
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2563.84
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57
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8765.85
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7016.92
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25
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PBDT
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5324.87
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3751.61
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42
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12768.56
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8222.15
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55
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Depreciation /
Amortization
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202.30
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157.27
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29
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497.22
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413.40
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20
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PBT
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5122.57
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3594.34
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43
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12271.34
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7808.75
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57
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Tax Expenses
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1415.95
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1016.32
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39
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3396.27
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2028.43
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67
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PAT
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3706.62
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2578.02
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44
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8875.07
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5780.32
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54
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Profit attributable to
non-controlling interest
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1766.79
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1268.21
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39
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4226.07
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2569.26
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64
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Share of profit/loss
of Associate
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2.80
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-0.43
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-
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-0.67
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-0.37
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-
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Net Profit after
minority and share in associate
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1942.63
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1309.38
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48
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4648.33
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3210.69
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45
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EPS *
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48.8
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32.9
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38.9
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26.9
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BV (Rs)
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303.6
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261.1
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303.6
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261.1
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* Annualized on
current equity of Rs 159.26 crore. Face Value: Rs 1, Figures in Rs crore
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Source: Capitaline
Corporate Database
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Bajaj Finserv :
Consolidated Segment Results
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% of (Total)
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2306 (3)
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2206 (3)
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Var.(%)
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% of (Total)
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2303 (12)
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2203 (12)
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Var.(%)
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Segment Revenue
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Insurance
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44.45
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10706.78
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6683.87
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60
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48.65
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40867.25
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37080.72
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10
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Windmill
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0.03
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6.46
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7.96
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-19
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0.03
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23.16
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29.38
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-21
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Investments &
Others
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3.62
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872.02
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463.15
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88
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2.03
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1704.11
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995.53
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71
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Retail financing
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51.9
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12500.54
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9282.71
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35
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49.29
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41405.69
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31640.41
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31
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Total Segment Revenue
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100
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24085.80
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16437.69
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47
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100
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84000.21
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69746.04
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20
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Less: Inter segment
revenues
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805.82
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549.31
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47
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1928.20
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1307.06
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48
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Total Segment Revenue
from Operations (Net)
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100
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23279.98
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15888.38
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47
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100
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82072.01
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68438.98
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20
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PBIT
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Insurance
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10.65
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545.83
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88.07
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520
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7.21
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1212.61
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1778.21
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-32
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Windmill
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0.07
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3.38
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4.41
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-23
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0.06
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10.49
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6.32
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66
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Investments &
Others
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-3.28
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-168.20
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-193.76
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13
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-3.45
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-580.76
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-514.10
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-13
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Retail financing
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92.57
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4744.36
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3695.19
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28
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96.18
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16168.79
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10000.15
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62
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Total PBIT
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100
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5125.37
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3593.91
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43
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100
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16811.13
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11270.58
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49
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Less : Interest
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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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PBT
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100
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5125.37
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3593.91
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43
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100
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16811.13
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11270.58
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49
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Capital Employed
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Insurance
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5.32
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16626.05
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14791.83
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12
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5.65
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16288.56
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16619.38
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-2
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Windmill
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0.01
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33.97
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37.26
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-9
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0.01
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33.02
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34.62
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-5
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Investments &
Others
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0.52
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1632.80
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1682.46
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-3
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0.45
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1301.13
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937.79
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39
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Retail financing
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94.14
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293971.46
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217993.43
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35
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93.88
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270469.55
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208566.12
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30
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Total Segment
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100
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312264.28
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234504.98
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33
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100
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288092.26
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226157.91
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27
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Add: Unallocated
Corporate
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-37.51
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-6.70
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-460
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31.58
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30.99
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2
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Total
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100
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312226.77
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234498.28
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33
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100
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288123.84
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226188.90
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27
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Figures in Rs crore, PL:
Profit to Loss; LP Loss to Profit
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Source: Capitaline
Corporate Database
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