Bajaj Finserv Q3 Results: Five highlights from the scorecard

Bajaj Finserv on January 30 reported a healthy growth in its net profit for the quarter ended December on the back of strong growth in the non-banking finance subsidiary.

Here are the key highlights

The company reported a sharp rise in its consolidated PAT of 42 percent to Rs 1,782 crore as against Rs 1,256 crore a year back.

Consequently, Bajaj Finance’s bottomline surged 40 percent to Rs 2,973 crore from Rs 2,125 crore in Q3 FY22.

On a nine-month basis, the consolidated profit of Bajaj Finserv spiked 45 percent to Rs 4,648 crore as against Rs 3,211 crore in the similar period last year.

The revenue from operations came in at Rs 21,755.15 crore, rising 23.70 percent from Rs 17,586.74 crore in the corresponding quarter of the previous year.

Also read: Bajaj Finserv Q3 result: Net profit zooms 42% to Rs 1,782 crore

The asset quality of the non-banking finance company Bajaj Finance Ltd improved in the reporting quarter with the gross non-performing assets (NPA) ratio improving 59 basis points on-year and net NPA ratio by 37 basis points.

Gross NPA and Net NPA as of December 31, 2022 stood at 1.14 percent and 0.41 percent, as against 1.73 percent and 0.78 percent as of December 31, 2021.

The company has a provisioning coverage ratio of 64 percent on stage 3 assets and 116 bps on stage 1 and 2 assets as of December 31, 2022.

Loan losses and provisions for Q3 FY23 was Rs 841 crore as against Rs 1,051 crore in Q3 FY22. “The company holds a management and macro-economic overlay of Rs 1,000 crore as of December 31, 2022,” it said.

Bajaj Allianz General Insurance Company (BAGIC) saw its net profit down 9 percent to Rs 278 crore, as against Rs 304 crore in Q3FY22.

Gross written premium for the reporting quarter increased by 29 percent to Rs 3,821 crore.

While, excluding tender driven crop and government health insurance premium, BAGIC’s gross written premium increased by 13 percent.

Company’s Assets under Management (AUM), represented by cash and investments as on December 31, 2022 stood at Rs 25,977 crore, as against Rs 23.977 crore a year back, which represents an increase of 8 percent.

Investment and other income (net) for Q3FY23 stood at Rs 413 crore, as against Rs 402 crore. Profit on sale of investments was lower by Rs 25 crore (before tax) in Q3FY23.

Also read: Bajaj Finance on fire after Q3 net surges: What's the call on the stock?

The net profit of Bajaj Allianz Life Insurance Company (BALIC) fell 8 percent on-year to Rs 81 crore during the quarter ended December.

New business premium of the company in December quarter stood at Rs 2,289 crore as compared to Rs 2,377 crore in the similar period last year.

Renewal premium for Q3FY23 was Rs 2,215 crore, compared to Rs 1.702 crore in Q3FY22, while gross written premium for Q3FY23 increased 10 percent to Rs 4,504 crore.