Moneycontrol
May 17, 2018 06:27 PM IST | Source: Moneycontrol.com

Bajaj Finserv Q4 net profit up 28% YoY to Rs 685 crore, insurance business grows

The board has recommended a dividend of Rs 1.75 per share.

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Bajaj Finserv posted a 28 percent rise in its March quarter consolidated net profit to Rs 685.5 crore YoY on the back of a strong growth in its insurance and non-banking ventures, although it missed estimates.  A Reuters poll of equity analysts had estimated that net profit could grow by 64 percent to Rs 875.5 crore for Q4FY18.

In Q4FY17, the company had posted a net profit of Rs 534.9 crore.

Bajaj Finserv is the holding company for insurance and non-banking financial company (NBFC) Bajaj Finance.

Premium and other operating income from the insurance business rose 15.5 percent YoY to Rs 5,147.9 crore. Revenue from operations rose 36.9 percent to Rs 3,681.37 crore. For Q4, the consolidated total revenue rose by 25 percent to Rs 8,829 crore.

For the full year (FY18), income from operations rose 34.4 percent to Rs 13,561.64 crore YoY. The Reuters poll had estimated income from operations to rise by 15.5 percent in FY18. The revenue from operations in FY17 was Rs 10,104.8 crore.

The company was formed in April 2007 as a result of its demerger from Bajaj Auto to further Bajaj Group’s financial services business. This demerger enabled Bajaj Finserv to independently run core businesses of lending, insurance and wealth advisory.

The board has recommended a dividend of Rs 1.75 per share. Bajaj Finserv stock was among the top two on Nifty, along with its group company Bajaj Finance on May 17.

Bajaj Finance rallied more than 7.6 percent after its March quarter profit shot 61 percent YoY with an improvement in asset quality.

Bajaj Finance

Bajaj Finance reported a 60.5 percent YoY surge in net profit at Rs 720.95 crore for the fourth quarter ending March 2018 on the back of robust interest income and lower provisions due to improvement in bad loans.

The NBFC's net profit in the same quarter last year was Rs 449 crore. Net interest income (NII) for the quarter increased to Rs 2,365 crore, up 40 percent YoY from Rs 1,686 crore in the corresponding quarter last year.

Insurance businesses

Insurance subsidiaries Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance saw a healthy growth in revenues.

Bajaj Allianz General Insurance saw a 27 percent rise in net earned premium for Q4FY18, which stood at Rs 1,650 crore. Net profit rose by 13 percent YoY to Rs 187 crore for the March quarter.

The life insurance business saw a 20 percent increase in new business premium for the fourth quarter YoY to Rs 1,394 crore. Persistency (renewals) for the 13th month improved from 68 percent in FY17 to 77 percent in FY18.
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