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Results
12-Aug-21
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Analysis
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Max Financial Services
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Steady performance in challenging times
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Max
Financial Services (MFSL) has posted sharp 84% decline in the net profit to Rs
21.19 crore in the quarter ended June 2021 (Q1FY2022).
The
consolidated revenues (excluding investment income) increased 27% to Rs 3420
crore. The base of Q1FY2021 had one-off tax refund, lower operating expenses
and lower death claims due to COVID-19 induced lockdown.
The
company has exhibited a strong performance on new business premiums (on APE
basis) as it achieved a 32% jump to Rs 875 crore from Rs 661 crore in Q1FY2022.
The renewal premium income (including group) also moved up 21% to Rs 2244 crore,
taking the gross written premium to Rs 3484 crore, a spurt of 27% over the
first quarter of the previous financial year.
The
company has exhibited healthy performance, despite a 3-4X more severe impact of
the second wave of COVID-19 compared with the first wave. Claim experiences
were higher than expected across all lines of businesses with significantly
higher variance for Protection and Group businesses.
MFSL’s
sole operating subsidiary, Max Life, registered a 28% increase in total
revenues at Rs 4626 crore in the period under review. The Individual Sum
Assured of New business reported a 13% decline in Q1FY22 due to de-growth in
protection business while the market share improved to 16.1%.
Max
Life maintained 4th rank in the private industry and increased its market share
by 63 bps. In terms of industry performance, Max Life once again posed stellar
results as it not only grew at 34% – more than twice the overall industry
growth of 16% – but outperformed the industry on a 2-Year CAGR basis, too. Max
Life also went past other private players who grew at 26% in the quarter under
review.
The
New Business Margin (NBM) for Q1FY22 was 19.7% (at actual costs), an increase
of 260 bps from 17.1% in the year-ago period guided by a change in business
mix. Further, this aided a 53%- growth in the Value of New Business (VNB) was
Rs 172 crore. The higher growth in VNB was due to higher sales and change in
business mix.
Max
Life reported an Embedded Value (EV) of Rs 12290 crore, an uptick of 15% from
Rs 10670 crore in the year-ago period driven by growth in value of new business
and quality of inforce business. The Operating Return on EV (RoEV) in Q1FY22
stood at 13.5%.
Embedded
value per share of the company stood at Rs 356.1 per share end June 2021.
Assets
under management (AUM) increased 28% to Rs 93697 crore – a rise of 28% over the
year-ago period. Max Life’s Claim paid ratio at 99.35% at the end of the first
quarter under review is among the best in the industry.
Mohit Talwar, Managing Director, Max Financial
Services, said, “Strong focus towards customer measures has helped
deliver superior performance across health parameters and will continue to
remain an important priority due to the impact of the second wave of the
COVID-19.Our partnership with Axis Bank after the conclusion of the deal in
April and the longstanding bancassurance with YES Bank helped partnership
channels grow 52% in the first quarter of FY22.”
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Max Financial Services: Consolidated Financial Results
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Particulars
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2106 (3)
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2006 (3)
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Var %
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2103 (12)
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2003 (12)
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Var %
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Income from operations
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5942.05
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5504.61
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8
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31273.91
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18239.98
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71
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Other Income
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1.09
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12.71
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14.11
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1.78
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Total Income
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5943.14
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5517.32
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8
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31288.02
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18241.76
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72
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Interest Expenses
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0.11
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0.08
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38
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0.27
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0.28
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-4
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Other expenses
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5857.71
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5363.24
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9
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30744.77
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17716.20
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74
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Gross profit
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85.32
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154.00
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-45
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542.98
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525.28
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3
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Depreciation
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1.37
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1.31
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5
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5.32
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11.37
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-53
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Profit before tax
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84.37
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150.70
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-44
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592.90
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442.48
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34
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Provision for tax
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48.56
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-30.83
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PL
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33.15
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169.63
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-80
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PAT
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35.81
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181.53
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-80
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559.75
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272.85
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105
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Minority Interest (MI)
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14.62
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50.68
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-71
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134.36
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127.86
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5
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PAT after MI
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21.19
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130.85
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-84
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425.39
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144.99
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193
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EPS*(Rs)
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2.5
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15.2
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12.3
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4.2
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* Annualized on current equity of Rs 69.02 crore. Face Value: Rs
2, Figures in Rs Crore
Profit to loss: Profit to Loss, LP: Loss to Profit
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Source: Capitaline Corporate Database
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Previous News |
Max Financial Services CFO resigns
(
Corporate News
-
06-Apr-22
18:55
)
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Max Life's statement on proposal for non-linked life insurance policies in Budget 2023
(
Corporate News
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02-Feb-23
09:36
)
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Max Financial Services to conduct board meeting
(
Corporate News
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21-Dec-23
09:32
)
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Max Financial Services
(
Results
-
Analysis
10-Nov-21
15:02
)
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Max Financial Services
(
Results
-
Analysis
30-Jan-22
23:43
)
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Max Financial Services
(
Results
-
Analysis
01-Feb-23
10:30
)
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Max Financial Services acquires balance 5.17% stake in Max Life
(
Corporate News
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08-Dec-22
17:48
)
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Max Financial Services Ltd up for third straight session
(
Hot Pursuit
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08-Feb-19
13:05
)
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Max Financial Services appoints CFO
(
Corporate News
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06-Apr-22
18:56
)
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Max Financial Services allots 8,003 equity shares under ESOP
(
Corporate News
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09-Jul-21
10:44
)
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Max Financial Q4 PAT tumbles 97% to Rs 7 cr
(
Hot Pursuit
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27-May-20
15:08
)
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