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The income from operation of Max Financial Services
increased 9.11% to Rs 10164.62 crore in Q2FY2024. The revenue of Life Insurance
(99.91% of total revenues) segment has gone up 9.25% to Rs 10,162.19 crore. The
revenue of Business Investments (0.09% of total revenues) segment has gone down
55.07% to Rs 9.31 crore.
PBIT of Life Insurance segment rose 112.13% to Rs 146.73
crore (accounting for 102.54% of total PBIT). PBIT of Business Investments
reported loss of Rs 3.64 crore (accounting for (-)2.54% of total PBIT) compared
to profit of Rs 7.63 crore.
The Capital employed for Life Insurance (35.61% of total)
segment has gone up 19.02% to Rs 3,768.71 crore. The Capital employed for Business
Investments (64.39% of total) segment has gone up 0.03% to Rs 6,813.24 crore.
Overall OPM has increased to 1.42% in Q2FY2024 from 0.84% in
Q2FY2024, leading to 84.51% rise in operating profit to Rs 143.86 crore. Other
expenditure as a percentage of total income moved down to 98.62% from 99.04% in
Q2FY2024. The staff cost as a percentage of total income declined to 0% from
0.13% in Q2FY2024. The provisions as percentage of total income declined to
0.04% from 0% in Q2FY2024.
Other income increased 277.23% to Rs 24.52 crore. Interest
cost declined 1.16% to Rs 9.36 crore. Depreciation moved down 33.33% to Rs 0.78
crore. PBT moved up 114.33% to Rs 158.24 crore.
Provision for tax was credit of Rs 12.08 crore, compared to
debit of Rs 12.22 crore. Profit after tax rose 176.45% to Rs 170.32 crore.
There was profit attributable to non-controlling interest of
Rs 22.43 crore as compared to Rs 10.32 crore. The share of profit of associate
were nil in both the periods. Finally, Net profit attributable to owners moved
up 188.34% to Rs 147.89 crore.
Business
performance
Max Financial Services has posted strong 32% growth
in Individual Adjusted First Year Premium in Q2FY2024, compared to 16% growth
in the private sector. This growth was primarily driven by 34% increase in the
number of policies. Proprietary channels new business premiums (APE) grew by
50% in Q2FY24 and 42% in H1FY24 on y-o-y basis which was driven by both online
and offline distribution.
The contribution of Proprietary channels to total
new business premium increased from 35% to 40% in H1FY24. Banca channels new
business premiums (APE) grew by 30% in Q2FY24 and 15% in H1FY24 on y-o-y.
In Q2, Max Life launched few innovative product
offerings to capture larger market share. It launched an industry first index
fund focusing on small cap and tied to Nifty Small cap 250 quality 50 Index to
cater E-commerce and Banca customers.
This fund crossed a significant milestone of Rs.
100 crore AUM within just 40 days of launch. Max Life also ventured into Health
space by launching Max Life “Secure Earnings and Wellness Advantage Plan“
(SEWA) offering fixed benefits to cater to need of Death, Heath and Savings, an
industry first proposition with a customized wellness ecosystem (Max Fit App).
This resulted in growth of 70% in Retail Protection and Health segment in
Q2FY24 and 55% in H1FY24 on y-o-y.
Max Life’s focus on retirement led to growth of
217% in the Annuity business in H1FY24. Max Life Pension Fund Management
Limited AUM increased to Rs 409 crore end September 2023 against Rs 16 crore
in September 2022.
Further, the renewal premium income (including
group) rose 11% to Rs 7215 Crore, taking the gross written premium to Rs 11496
Crore, an increase of 16% over the half year of the previous financial year.
Max Life achieved Value of New Business (VNB) of Rs
663 Crore in H1FY24, grew 13% y-o-y. New Business Margin (NBM) stands at 24% in
H1FY24. Max Life reported an Embedded Value of Rs 17,911 crore, while the
Operating Return on EV (RoEV) over H1FY24 stood at 17.5%, improved by 180 bps
y-o-y. Max Life’s assets under management (AUM) were Rs 134161 crore end September
2023, Up 18% over the previous year.
Max Life has expanded distribution capability by
signing distribution digital partnership with AU Small Finance Bank along with
7 new partners in H1FY24. Max Life consistently maintained industry best claims
paid ratio at 99.51% in FY23.
Prashant Tripathy, MD and CEO, Max Life Insurance, said,
“We have continued to build upon our
strong growth trajectory delivering another robust quarter. Our business growth
was powered by innovation in products to address diverse customer needs,
consistently strengthening and expanding our proprietary channels, and a steady
momentum in our Banca channels. Our enduring commitment lies in promoting
ongoing growth through strategic collaborations, forging new partnerships and
bolstering our presence in the market.”
Financial
performance H1FY2024
The income from operation of Max Financial Services
increased 53.58% to Rs 19332.74 crore in H1FY2024. The revenue of Life
Insurance (99.91% of total revenues) segment has gone up 53.82% to Rs 19,327.80
crore. The revenue of Business Investments (0.09% of total revenues) segment
has gone down 51.23% to Rs 16.62 crore.
PBIT of Life Insurance segment rose 80.46% to Rs 274.18
crore (accounting for 102.67% of total PBIT). PBIT of Business Investments
reported loss of Rs 7.12 crore (accounting for (-)2.67% of total PBIT) compared
to profit of Rs 10.41 crore.
The Capital employed for Life Insurance (35.61% of total)
segment has gone up 19.02% to Rs 3,768.71 crore. The Capital employed for
Business Investments (64.39% of total) segment has gone up 0.03% to Rs 6,813.24
crore.
Overall OPM has increased to 1.39% in H1FY2024 from 1.31% in
H1FY2024, leading to 63.20% rise in operating profit to Rs 268.83 crore. Other
expenditure as a percentage of total income moved up to 98.57% from 98.54% in
H1FY2024. The staff cost as a percentage of total income declined to 0.06% from
0.15% in H1FY2024. The provisions as percentage of total income declined to
0.02% from 0% in H1FY2024.
Other income increased 160.37% to Rs 27.86 crore. Interest
cost declined 0.74% to Rs 18.68 crore. Depreciation moved down 25.63% to Rs
1.77 crore. PBT moved up 79.12% to Rs 276.24 crore.
The effective tax rate declined to 1.73% in H1FY2024
compared to 15.65% in H1FY2024. Provision for tax was expense of Rs 4.79 crore,
compared to Rs 24.13 crore. Profit after tax rose 108.66% to Rs 271.45 crore.
There was profit attributable to non-controlling interest of
Rs 35.88 crore in H1FY2024 as compared to Rs 22.44 crore in H1FY2024. The share
of profit of associate were nil in both the periods. Finally, Net profit
attributable to owners rose 118.83% yoy to Rs 235.57 crore in H1FY2024.
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Max Financial Services : Consolidated Results
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|
Particulars
|
2309 (3)
|
2209 (3)
|
Var %
|
2309 (6)
|
2209 (6)
|
Var %
|
2303 (12)
|
2203 (12)
|
Var %
|
|
Income from Operations
|
10164.62
|
9316.09
|
9
|
19332.74
|
12587.78
|
54
|
31412.67
|
31181.21
|
1
|
|
OPM (%)
|
1.42
|
0.84
|
|
1.39
|
1.31
|
|
1.75
|
1.32
|
|
|
OP
|
143.86
|
77.97
|
85
|
268.83
|
164.72
|
63
|
550.90
|
412.02
|
34
|
|
Other Inc.
|
24.52
|
6.50
|
277
|
27.86
|
10.70
|
160
|
18.39
|
6.37
|
189
|
|
PBDIT
|
168.38
|
84.47
|
99
|
296.69
|
175.42
|
69
|
569.29
|
418.39
|
36
|
|
Interest
|
9.36
|
9.47
|
-1
|
18.68
|
18.82
|
-1
|
37.46
|
24.74
|
51
|
|
PBDT
|
159.02
|
75.00
|
112
|
278.01
|
156.60
|
78
|
531.83
|
393.65
|
35
|
|
Depreciation
|
0.78
|
1.17
|
-33
|
1.77
|
2.38
|
-26
|
4.63
|
5.00
|
-7
|
|
PBT before EO
|
158.24
|
73.83
|
114
|
276.24
|
154.22
|
79
|
527.20
|
388.65
|
36
|
|
Tax Expenses
|
-12.08
|
12.22
|
-199
|
4.79
|
24.13
|
-80
|
75.31
|
70.25
|
7
|
|
PAT
|
170.32
|
61.61
|
176
|
271.45
|
130.09
|
109
|
451.89
|
318.40
|
42
|
|
Non-controlling interest
|
22.43
|
10.32
|
117
|
35.88
|
22.44
|
60
|
73.41
|
65.03
|
13
|
|
Share of P&L from Asso.
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
|
|
Net profit
|
147.89
|
51.29
|
188
|
235.57
|
107.65
|
119
|
378.48
|
253.37
|
49
|
|
EPS (Rs)*
|
17.2
|
6.0
|
|
13.7
|
6.3
|
|
11.0
|
7.4
|
|
|
EV (Rs)/share
|
521.4
|
426.1
|
|
521.4
|
426.1
|
|
473.3
|
410.7
|
|
|
* 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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