India’s leading non-banking financial services company Bajaj Finserv Ltd posted its quarterly results for Q4 FY22. The company posted a 7.2%% QoQ jump in its PAT which came in at Rs 1,346 crore in the quarter under review from Rs 1,255 crore in the previous quarter. On a YoY basis, the PAT jumped 37.4% to Rs 1,346 crore from Rs 979 crore in the year-ago period.
Bajaj Finserv’s interest income was largely flat on a sequential basis, while there was a 19.7% YoY increase in the company’s interest income to Rs 8,382 crore from Rs 6,999 crore in the corresponding quarter in the previous financial year. This was attributable to several factors, one of which was lower auto sales that impacted Bajaj Finserv’s insurance business.
More on Bajaj Finserv Q4 Results
The company’s revenue from operations was up 7.2% QoQ to Rs 8,382 crore in the March 2022 quarter from Rs 17,586 crore in the previous quarter. On a YoY basis, the revenue from operations was up 22.5% to Rs 18,861 crore from Rs 15,387 crore in the year-ago period. This was mostly due to improved business conditions in the period between January 2022 to March 2022.
Bajaj Finserv recorded its highest ever assets under management and annual consolidated profit after tax in FY22. Customer franchise stood at 5.7 crores as of 31 March 2022 as compared to 4.85 crores as of 31 March 2021 – an increase of 19% YoY. Customer franchise recorded the highest ever increase of 90 lakh in FY22.
The company’s board recommended a dividend of Rs 4 per share on April 28, 2022.
Hits of Bajaj Finserv Results
- PAT up 7.2%% QoQ, 37.4% YoY to Rs 1,346 crore in the quarter under review
- Interest income up 19.7% YoY to Rs 8,382 crore from Rs 6,999 crore in the corresponding quarter in the previous financial year
- Revenue from operations up 7.2% QoQ, 22.5% YoY to Rs 8,382 crore in the March 2022 quarter
- Dividend income up at Rs 24 crore for the March 2022 quarter from Rs 19 crore in the previous quarter and Rs 20 crore in the year-ago period
- Premium and other operating income from insurance business up 204% QoQ, 31.8% YoY at Rs 9,800 crore
- Earnings Per Share (EPS) up at Rs 84.6 in the quarter under review from Rs 78.9 in the previous quarter and Rs 61.5 in the year-ago period
- Interest income largely flat on a QoQ basis
- Investment revenue down 59.8% YoY to Rs 125 crore
- Insurance: Revenue up 20.4% YoY to Rs 10,363 crore in the quarter under review from Rs 8,606 crore in the year-ago period
- Investments & others: Revenue down 59.8% YoY to Rs 125 crore in the quarter under review
- Retail Financing: Revenue up 25.9% YoY to Rs 8,630 crore in the quarter under review
- Windmill: Revenue up 250% YoY to Rs 7 crore in the quarter under review
Bajaj Finance Ltd.
- The company reported an increase in the total income of 26% y-o-y to Rs 8,630 crore
- The higher net income and better asset performance helped the company’s profit. Its profit jumped 80% y-o-y to Rs 2,420 crore when compared to the same period last year.
- The AUM (asset under management) as on Mar 31, 2022 stood at Rs 1,97,452 crore versus Rs 1,52,947 crore last year.
- Gross NPA during the quarter is at 1.6% versus 1.79% in 4QFY21
- Net NPA was 0.68% in 4QFY21 versus 0.75% same period last year.
Read more on Groww: Bajaj Finance Q4 FY2022
Bajaj Allianz General Insurance
- The company’s gross written premium increased by 18% to R 3,300 crore during the fourth quarter of the financial year 2022. The claim ratio increased to 68.8%. This happened mainly due to “non-covid health claims” according to the company.
- Net profit for the company dipped slightly to Rs 248 crore from Rs 273 crore last year.
- The company’s solvency ratio is around 344%, which is above the regulatory requirement of 150%. By definition, the solvency ratio means how capable are the company’s assets (like cash) to meet short term obligations and liabilities.
Bajaj Allianz Life Insurance
- Bajaj Life Insurance company’s new business premium for quarter 4 stood at Rs 3,236 crore as compared to Rs 2,493 crore in the year-ago period- an increase of 30%
- Renewal premium stood at Rs 2,483 crore – an increase of 24% year on year
- Shareholders’ profit after tax during Q4 FY22 stood at Rs 48 crore v/s Rs 234 crore in the year-ago period.
- The solvency ratio stood at 581% as of 31 March 2022 against the minimum regulatory requirement of 150%
- Assets Under Management (AUM) increased by 16% year on year to Rs 85,623 crore.
What the management says
As per the company’s statement, the business conditions improved significantly in Q4 of FY22. But market conditions were volatile due to the outbreak of war in Ukraine. Although lower sales of automobiles due to supply chain problems affected the general insurance business, the overall environment was conducive and all businesses of the company recorded excellent growth.
Other things to know about Bajaj Finserv
- The company has a P/E ratio of 52.71 against the industry average of 23.90.
- Bajaj Finserv’s P/B ratio is at 4.04 against the industry average of 2.20.
- The company’s dividend yield is at 0.002% against the industry average of 0.58%
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Research Analyst: Bavadharini KS