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Informist, Tuesday, Apr. 29, 2025

 

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--Bajaj Finserv FY25 consol revenue INR 1.338 tln vs INR 1.104 tln year ago 
--Bajaj Finserv FY25 consol PAT INR 88.72 bln vs INR 81.48 bln year ago 
--Bajaj Finserv to pay INR 1 per share dividend 
--Bajaj Finserv Jan-Mar consol revenue INR 365.95 bln vs INR 320.41 bln yr ago 
--Bajaj Finserv Jan-Mar consol PAT INR 24.17 bln vs INR 21.19 bln year ago 
--Bajaj Finserv Jan-Mar consol PAT INR 24.17 bln
 

 

By Pratiksha

 

NEW DELHI – Bajaj Finserv Ltd.'s consolidated net profit for the quarter ended March rose at its fastest pace year-on-year in four quarters due to increase in interest income and healthy operating income from its insurance business. However, an on-year jump in finance cost ate into the non-banking financial company's bottom line.

 

Bajaj Finserv's net profit rose 14.1% on year to INR 24.17 billion in Jan-Mar, up 8.3% sequentially. Bajaj Finserv is the non-operating holding company of Bajaj Finance Ltd., Bajaj Allianz General Insurance Co. Ltd., Bajaj Allianz Life Insurance Co. Ltd., and Bajaj Finserv Asset Management Ltd. Bajaj Finance, in turn, is the promoter of Bajaj Housing Finance Ltd. and Bajaj Financial Securities Ltd.

 

The Pune-based non-bank lender's consolidated total income rose 14.2% on year to INR 365.96 billion, of which the interest income jumped 22.5% on year to INR 179.47 billion and premium and other operating income from insurance business rose 11.7% to INR 165.72 billion in the reported quarter. 

 

In Jan-Mar, the company's total expenses rose 15.4% on year to INR 306.03 billion, of which finance costs grew by 24.1% to INR 63.96 billion. The company's expense from net change in insurance or investment contract liabilities rose 25.1% on year to INR 46.12 billion.

 

Bajaj Finserv's consolidated net profit for FY25 rose 8.9% to INR 88.72 billion, and consolidated total income jumped up over 21% to INR 1.34 trillion. The company's board has recommended a dividend of INR 1 per equity share.

 

The company's subsidiary Bajaj Finance reported a 17% on year rise in consolidated net profit to INR 44.80 billion for the quarter ended March, slightly higher than analysts' estimate of INR 44.49 billion, owing to strong growth in new loans booked and assets under management.

 

Shares of Bajaj Finserv Tuesday ended 0.8% higher to INR 2,066.90 on the National Stock Exchange. The company declared its earnings result post market hours.

 

SUBSIDIARY PERFORMANCE

Bajaj Finserv said its subsidiary Bajaj Allianz Life Insurance Co.'s net profit more than halved to INR 410 million in Jan-Mar. The company's other subsidiary Bajaj Allianz General Insurance Co.'s profit after tax fell by nearly 4.5% on year to INR 3.63 billon in the quarter.

 

In Jan-Mar, Bajaj Allianz General Insurance's gross written premium was INR 43.26 billion, against INR 49.62 billion a year ago. Excluding tender-driven crop insurance and government health insurance premium, the general insurance company's gross written premium increased to INR 37.96 billion from INR 37.80 billion a year ago. On a comparable basis, with no changes in the gross premiums, the gross written premium rose 8% on year to INR 40.63 billion, the company said.

 

The general insurer's claim ratio decreased to 62.9% from 70.3% in the corresponding quarter last year due to better claims experience. As of Mar. 31, Bajaj Allianz General Insurance's solvency ratio was 325%, well above the minimum regulatory requirement of 150%. Assets under management at the end of March were INR 331.15 billion, up 6% on year. 

 

Bajaj Allianz Life Insurance Co.'s new business premium fell 4.1% on year to INR 37.89 billion, of which individual rated new business premium was INR 23.28 billion, flat on year. Renewal premium for Jan-Mar was INR 54.48 billion, up 29% on year. Consequently, gross written premium increased 13% to INR 92.37 billion.

 

Net new business value--the metric used to measure the profitability of the life insurance business--was INR 5.49 billion, up 14% on year. The solvency ratio was 359% as of Mar. 31, against the minimum regulatory requirement of 150%. Assets under management as of Mar. 31 were at INR 1.24 trillion, up 13% on year.  End

 

Edited by Ashish Shirke

 

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