BAJAJ Finserv Q4FY22 and Year Ended result : PAT up 37.5% to ₹1,346 Cr YoY

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Bajaj Finserv Limited (BFS) is the holding company for the various financial services businesses under the Bajaj Group. It serves millions of customers in the financial services space by providing solutions for asset acquisition through financing asset protection through general insurance family protection and income protection in the form of life and health insurance and retirement and savings solutions.

BFS holds 55.13% stake in Bajaj Finance Limited (BFL) and 74% stake each in Bajaj Allianz General Insurance Company Limited (BAGIC) and Bajaj Allianz Life Insurance Company Limited (BALIC). The company has posted its Q4FY22 and year ended financial results today, the details are as below :

(I) Audited Consolidated Financial Results for Quarter Ended (YoY comparison):

The company has reported, a consolidated Total Income of ₹18,861.67 crore in the quarter ended on March 31, 2022 as against ₹15,387.25 crore in the corresponding quarter ended last year on Mar 31, 2021, increased by 22.58%.

The company has posted a consolidated Net Profit of ₹1,346.08 crore in the quarter ended on March 31, 2022 as against ₹979.06 crore in the corresponding quarter ended in last year on Mar 31, 2021. The PAT surges up by 37.49%.

The status of the EPS of the company stood at ₹84.6 as on March 31, 2022 compared to the previous quarter ended on Mar 31, 2021 which was ₹61.5, up by 37.56%.

₹*Mar 31, 2022 (Q4FY22)Dec 31, 21 (Q3FY22)Mar 31, 21 (Q4)
Total Income18,861.6717619.6415,387.25
Total Expenses15399.4814370.5513028.93
PBT /(Loss)3462.203249.002358.50
Total Tax /(credit)928.62899.57613.46
PAT /(Loss) [to the owners]1,346.081255.79979.06
*figures are in Crores

(II) Audited Consolidated Financial Result details for the Year Ended :

The company has reported, a consolidated Total Income of ₹68,438.98 crore in the financial year ended on March 31, 2022 as against ₹60,591.57 crore for the financial year ended on Mar 31, 2021, increased by 12.95%.

The company has posted a consolidated Net Profit of ₹4,556.77 crore in the financial year ended on March 31, 2022 as against ₹4,470.46 crore for the financial year ended on March 31, 2021. The PAT surges up by 1.93%.

The status of the EPS of the company stood at ₹286.3 as on March 31, 2022 compared to the previous year ended on March 31, 2021 which was ₹280.9, up by 1.92%.

₹*Mar 31, 2022 (FY22)Mar 31, 2021 (FY21)
Total Income68438.9860,591.57
Total Expenses57168.0450729.05
PBT /(Loss)11270.589862.34
Total Tax /(credit)2957.052494.96
PAT /(Loss)4,556.774,470.46
*figures are in Crores

(III) Key Highlights about the Performance :

  • BFL recorded its highest ever assets under management and annual consolidated profit after tax in FY22. Customer franchise stood at ₹57.57 million as of 31 March 2022 as compared to ₹48.57 million as of 31 March 2021 – an increase of 19%. Customer franchise recorded highest ever increase of ₹9.0 million in FY22.
  • BAGIC maintained its market position and underwriting discipline where most peers continued to chase market share. It also recorded in highest ever gross written premium and profit after tax in FY22.
  • BALIC continued its excellent performance and recorded industry beating growth of 49% in individual rated new business premium in FY22. It also recorded in highest ever gross written premium and strong growth in new business value in FY22.

For Bajaj Allianz General Insurance :

  • Solvency Ratio stands at healthy 344% at 31 March 2022
  • Grievance ratio for FY22 is 1.05 per 10,000 policies issued expected to be amongst the best in the Industry
  • Gross written premium for Q4 FY22 increased by 18% to ₹3,300 crore v/s ₹2,787 crore in Q4 FY21.
  • BAGIC wrote crop & government health insurance of ₹429 crore in Q4 FY22 v/s ₹96 crore in Q4 FY21.
  • Net earned premium for Q4 FY22 increased by 11% to ₹1,988 crore v/s ₹1,794 crore in Q4 FY21 .
  • Claim ratio increased to 68.8% in Q4 FY22 v/s 64.3% in Q4 FY21, mainly due to increase in severity of non Covid health claims.
  • Combined ratio was 98.3% in Q4 FY22 v/s 96.6% in Q4 FY21.
  • Underwriting profit stood at ₹ 9 crore for Q4 FY22 v /s ₹ 6 crore in Q4 FY21.
  • Investment and other income (net) for Q4 FY22 stood at ₹ 327 crore v /s ₹ 353 crore in Q4 FY21. Profit on sale of investments was lower by ₹ 18 crore (before tax) in Q4 FY22.
  • Profit after tax for Q4 FY22 stood at ₹ 248 crore v /s ₹ 273 crore in Q4 FY21 .
  • As on 31 March 2022, solvency ratio was 344%, which is well above the minimum regulatory requirement of 150%.
  • Assets Under Management (AUM), represented by cash and investments as on 31 March 2022 stood
  • ₹24,633 crore v /s ₹ 23, 150 crore as on 31 March 2021.

For Bajaj Finance Limited (Q4 result details)- Consolidated –
i) Total income for Q4 FY22 increased by 26% to ₹8,630 crore v/s ₹6,855 crore in Q4 FY21.
ii) Profit after tax for Q4 FY22 increased by 80% to ~ ₹2,420 crore v /s ₹1,347 crore in Q4 FY21 mainly on account of robust AUM growth, higher net interest income and better asset performance.
iii) Assets Under Management (AUM) as at 31 March 2022 was ₹197,452 crore v/s ₹152,947 crore as at 31 March 2021 – an increase of 29%. This includes AUM of z 53,322 crore of its 100% mortgage subsidiary, BHFL, which recorded a growth of 37% over the AUM as on 31 March 2021.
iv) Gross NPA and Net NPA as of 31 March 2022 stood at 1.60% and 0.68% respectively as against 1.79% and 0.75% as of 31 March 2021. Provisioning coverage ratio of 58% is there on stage 3 assets. BFL holds a management and macro-economic overlay of ₹1,060 crore as at 31 March 2022 (₹840 crore as at 31 March 2021).
v) Capital adequacy ratio (including Tier-II capital) as of 31 March 2022 was 27.22%. The Tier-I capital stood at 24.75%. For Bajaj Housing Finance Limited (BHFL), the capital adequacy ratio (including Tier-II capital) stood at 19.72%.

(IV) Asset Quality :

For Bajaj Finance Ltd ( Q4FY22 result details), Gross NPA and Net NPA as of 31 March 2022 stood at 1.60% and 0.68% respectively as against 1.79% and 0.75% as of 31 March 2021. Provisioning coverage ratio of 58% is there on stage 3 assets. BFL holds a management and macro-economic overlay of ₹1,060 crore as at 31 March 2022 (₹840 crore as at 31st March 2021).

Shares of Bajaj Finserv Limited was last trading in BSE at ₹14828.55 as compared to the previous close of ₹15426.35. The total number of shares traded during the day was 9239 in over 2751 trades.

The stock of BAJAJ Finserv last hit in BSE,

  • Intraday High of ₹ 15350.00
  • Intraday low of ₹ 14756.95