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The income from operation of Max Financial Services
increased 10.82% to Rs 9929.37 crore as on 31 March 2023. Overall OPM eased to
0.64% as on 31 March 2023 from 1.79% as on 31 March 2022, leading to 60.23%
fall in operating profit to Rs 63.93 crore. Other expenditure as a percentage
of total income moved up to 99.32% from 98.31% as on 31 March 2023. The staff
cost as a percentage of total income increased to 0.04% from 0.10% as on 31
March 2023. The provisions as percentage of total income declined to 0% from 0%
as on 31 March 2023.
Other income increased 82.71% to Rs 4.86 crore.
Interest cost declined 0.11% to Rs 9.24 crore. Depreciation moved down 7.50% to
Rs 1.11 crore. After which, PBT moved down 61.80% to Rs 58.44 crore.
The effective tax rate increased to 10.25% as on 31
March 2023 compared to 5.86% as on 31 March 2022. Provision for tax was expense
of Rs 5.99 crore, compared to Rs 8.97 crore. Profit after tax fell 63.58% to Rs
52.45 crore.
There was profit attributable to non-controlling
interest of Rs 6.56 crore as on 31 March 2023 as compared to profit of Rs 26.32
crore as on 31 March 2022. The share of profit of associate were nil in both
the periods. Finally, Net profit attributable to owners moved down 61% to Rs
45.89 crore.
Business
performance
During FY23, Max Life total new business
premium (individual and group) increased 13% to Rs 8960 crore. In addition, the
renewal premium income (including group) grew 13% to Rs 16382 crore, taking the
gross premium to Rs 25342 crore, an increase of 13% over the previous financial
year. In Q4FY23, Max Life New Business Premium grew by 27% to Rs 3320 crore
driven by outperformance in proprietary channels.
Proprietary channels registered highest
ever growth of 43% in FY23, new business premium grew to Rs 2183 crore, driven
by secular growth across all channels i.e. online (ecommerce), agency, direct
selling teams. Proprietary channels’ contribution to individual sales increased
from 28% in FY 22 to 36% in FY23.
Max Life achieved the highest New
Business Margin (NBM) of 31.2% in FY23, improved by 380 bps over corresponding
previous period. Value of New Business (VNB) grew at 28% to Rs 1949 crore in
FY23.
Max Life reported an Embedded Value of
Rs 16263 crore, while the Operating Return on EV (RoEV) improved by 290 bps to
22.1% year-on-year.
Max Life’s assets under management (AUM)
were Rs 122857 crore end March 2023, a rise of 14% over the previous year.
Max Life has secured 4 new distribution
partnerships with DCB Bank, Tamilnad Mercantile Bank, Ujjivan Small
Finance Bank, Capital Small Finance Bank and 6 new renowned Brokers
in FY23. Max Life also inked pact with the Indian
Industries Association to provide life insurance plans to the Micro, Small, and
Medium Enterprises sector’s workforce in Uttar Pradesh, as part of its drive on
IRDAI’s State Insurance Plan.
Max Life strengthened its retirement
offering with the launch of regular pay annuity variant, annuity sales grew by 300%, in FY23. Max Life Pension fund management
(PFM) commenced operations in FY23, AUM end March 2023 Rs 143 Crore and also
obtained POP license.
Prashant Tripathy, Managing Director,
Max Life Insurance Company, said, “Through our continued focus on introducing
innovative products, expanding distribution strength across channels, and
driving a balanced product mix, we delivered strong growth in Q4FY23. Our
commitment to accelerate channel growth remains steadfast, and we are also actively
seeking strategic partnerships to further boost our market share."
Financial
performance FY2023
The income from operation of Max Financial Services
increased 0.74% to Rs 31412.67 crore as on 31 March 2023. Overall OPM has
increased to 1.75% as on 31 March 2023 from 1.32% as on 31 March 2022, leading
to 33.71% rise in operating profit to Rs 550.90 crore. Other expenditure as a
percentage of total income moved down to 98.16% from 98.57% as on 31 March
2023. The staff cost as a percentage of total income declined to 0.09% from
0.12% as on 31 March 2023.
Other income increased 188.70% to Rs 18.39 crore.
There is 51.41% rise in interest cost at Rs 37.46 crore and 7.40% decline in
depreciation to Rs 4.63 crore, Profit before tax increased 35.65% to Rs 527.20
crore. There is no extraordinary item. After which, PBT increased 35.65% to Rs
527.20 crore.
The effective tax rate declined to 14.28% as on 31
March 2023 compared to 18.08% as on 31 March 2022. Provision for tax was
expense of Rs 75.31 crore, compared to Rs 70.25 crore. Profit after tax rose
41.93% to Rs 451.89 crore.
There was profit attributable to non-controlling
interest of Rs 73.41 crore as on 31 March 2023 as compared to Rs 65.03 crore as
on 31 March 2022. The share of profit of associate were nil in both the
periods. Finally, Net profit attributable to owners rose 49.38% yoy to Rs 378.48
crore as on 31 March 2023.
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Max Financial Services : Consolidated Results
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|
Particulars
|
2303 (3)
|
2203 (3)
|
Var %
|
2303 (12)
|
2203 (12)
|
Var %
|
|
Income from Operations
|
9929.37
|
8959.65
|
11
|
31412.67
|
31181.21
|
1
|
|
OPM (%)
|
0.64
|
1.79
|
|
1.75
|
1.32
|
|
|
OP
|
63.93
|
160.76
|
-60
|
550.90
|
412.02
|
34
|
|
Other Inc.
|
4.86
|
2.66
|
83
|
18.39
|
6.37
|
189
|
|
PBDIT
|
68.79
|
163.42
|
-58
|
569.29
|
418.39
|
36
|
|
Interest
|
9.24
|
9.25
|
0
|
37.46
|
24.74
|
51
|
|
PBDT
|
59.55
|
154.17
|
-61
|
531.83
|
393.65
|
35
|
|
Depreciation
|
1.11
|
1.20
|
-7
|
4.63
|
5.00
|
-7
|
|
PBT before EO
|
58.44
|
152.97
|
-62
|
527.20
|
388.65
|
36
|
|
Tax Expenses
|
5.99
|
8.97
|
-33
|
75.31
|
70.25
|
7
|
|
PAT
|
52.45
|
144.00
|
-64
|
451.89
|
318.40
|
42
|
|
Non-controlling interest
|
6.56
|
26.32
|
-75
|
73.41
|
65.03
|
13
|
|
Share of P&L from Asso.
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
|
|
Net profit
|
45.89
|
117.68
|
-61
|
378.48
|
253.37
|
49
|
|
EPS (Rs)*
|
5.3
|
13.7
|
|
11.0
|
7.4
|
|
|
EV (Rs)/share
|
473.3
|
410.7
|
|
473.3
|
410.7
|
|
|
* Annualised on current equity of Rs 68.72 crore, Face value of
Rs 2, Excluding extraordinary items.
|
|
Figures in Rs crore
|
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Source: Capitaline Corporate Database
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