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Informist, Wednesday, Jul 24, 2024

--Bajaj Finserv Apr-Jun consol revenue 314.80 bln rupees vs 232.8 bln

--Bajaj Finserv Apr-Jun consol PAT 21.38 bln rupees vs 19.43 bln

MUMBAI – Bajaj Finserv Ltd's consolidated net profit for the quarter ended Jun 30 rose 10% on year to 21.38 bln rupees, supported by a steady performance by subsidiaries. The non-bank lender's consolidated revenue for the quarter rose to 314.80 bln rupees, up 35.2% from a year ago. In the Jan-Mar quarter, the consolidated revenue was 320.41 bln rupees.

Bajaj Finserv is the non-operating holding company of Bajaj Finance Ltd, Bajaj Allianz General Insurance Co Ltd, and Bajaj Allianz Life Insurance Co Ltd. Bajaj Finance, in turn, is the promoter of Bajaj Housing Finance Ltd and Bajaj Financial Securities Ltd.

FINANCE OPERATIONS

Bajaj Finance, which announced its Apr-Jun earnings on Tuesday, posted a 13.8% on-year rise in consolidated net profit to 39.12 bln rupees, but missed the Street's estimate due to a sharp rise in provisions and losses on loans. Analysts expected the diversified non-banking finance company to report a consolidated net profit of 40.33 bln rupees. Loan losses and provisions of the company surged 69.3% on year to 16.85 bln rupees in Apr-Jun.

Bajaj Finance's loan losses and provisions in Apr-Jun were up primarily on account of muted collection efficiency. The company's stage-II assets in Apr-Jun went up by 8.65 bln rupees from a quarter ago

Assets under management as on Jun 30 were 3.54 trln rupees, up 31% on year. The number of new loans booked in Apr-Jun grew by 10% on year to 10.97 mln as against 9.94 mln in the corresponding quarter a year ago. The company resumed sanctioning and disbursal of loans under "eCOM" and "lnsta EMI Card" and issuance of EMI cards after the Reserve Bank of India removed the restrictions on these businesses on May 2.

Bajaj Housing Finance's assets under management grew 31% to 970.71 bln rupees as on Jun 30. The company filed a draft red herring prospectus on Jun 8 with the Securities and Exchange Board of India for an initial public offering and is waiting for clearance.

GENERAL INSURANCE

Bajaj Allianz General Insurance's net profit for Apr-Jun rose 37% on year to 5.76 bln rupees. Gross written premium for the quarter rose 24% to 47.61 bln rupees. Excluding tender-driven crop and government health insurance premium, the general insurance subsidiary’s gross written premium increased by 22% to 46.64 bln rupees.

The net earned premium for the quarter under review was 22.32 bln rupees, up 15% from a year ago.

The claim ratio increased to 77.1% in Apr-Jun from 74.3% a year ago. "The increase in claim ratio is mainly attributable to few large commercial claims," the company said in the press release.

The combined ratio in Apr-Jun was 103.7%, up from 100.7% a year ago on account of higher claim ratio and ceding of a past book which reduced the net written premium for the quarter. On net earned premium basis, combined ratio was below 100%.

As on Jun 30, the solvency ratio was 311%, which is well above the minimum regulatory requirement of 150%.

Assets under management as on Jun 30 stood at 316.51 bln rupees, registering an increase of 11% on year.

LIFE INSURANCE

Bajaj Allianz Life Insurance Co's profit after tax for Apr-Jun slumped 37% to 970 mln rupees due to new business strain, higher expense overruns, and change in product mix. New business premium increased 18% on year to 25.41 bln rupees, of which individual rated new business premium was 12.94 bln rupees, registering growth of 26%.

Renewal premium for Apr-Jun was 24.77 bln rupees, up 30% on year. Consequently, gross written premium increased 24% to 50.18 bln rupees in the quarter under review.

Net new business value--the metric used to measure the profitability of the life insurance business--was 1.04 bln rupees, an increase of 11%.

The solvency ratio was at a healthy 399% as of Jun 30, against the minimum regulatory requirement of 150%. Assets under management as of Jun 30 were at 1.17 trln rupees, up 23% on year.

At 1442 IST, shares of Bajaj Finserv were down 2.4% at 1,579.85 rupees on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Richard Fargose

Edited by Ashish Shirke 

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