Bajaj Finserv churns out 14% rise in Q2 profit, revenue up 20%

Bajaj Finserv Ltd, the holding arm of Sanjiv Bajaj-led various financial services businesses including insurance and non-banking finance, reported a double-digit rise in earnings as well as revenue for the second quarter ended September 30.

Consolidated net profit rose 13.7% to Rs 1,122 crore from Rs 986 crore in the year-ago period. On a sequential basis, net profit rose 34%.

Consolidated profit excluding mark to market gain was Rs 1,017 crore, up 26% over the same period last year.

The profit growth was largely powered by contribution from the lending unit Bajaj Finance, which saw profit rise over 50% year-on-year. Profit contribution from the insurance businesses was a tad lower compared to last years.

Earlier this month, Bajaj Finance had said its quarterly consolidated net profit jumped 53% to Rs 1,481 crore. The consolidated figure includes results of two subsidiaries—Bajaj Housing Finance Ltd and Bajaj Financial Securities Ltd.

Bajaj Finserv’s total revenue rose 20% to Rs 18,008.4 crore from Rs 15,051.6 crore in the second quarter of last financial year.

The company’s share price has more than tripled in the last one year. The shares declined 0.2% to close at Rs 17,977 apiece after results were announced on Thursday. The broader Mumbai market slumped 1.9%.

Bajaj Finserv Q2: Other Highlights

1) Bajaj Finance’s Q2 FY22 AUM was at Rs 1,669,36.6 crore, up 22% YoY.

2) Bajaj Finance sanctioned 6.33 million new loans in Q2 as against 3.62 million a year earlier.

3) Bajaj Finance’s Gross NPA and Net NPA for the quarter stood at 2.45% and 1.1%, respectively, as against 2.96% and 1.46% as of June 2021.

4) Bajaj Allianz General Insurance’s gross direct premium income grew 21% in Q2 vs private-sector peers that grew by 13.7%

5) Bajaj Allianz General Insurance’ growth was driven by four wheelers, fire, marine, government, health and travel segments.

6) Bajaj Allianz General Insurance’ AUM rose 17% to Rs 24,070 crore; net profit rose 28% to Rs 425 crore.

7) Bajaj Allianz Life Insurance AUM grew by 27% YoY to Rs 81,400 crore.

8)  Bajaj Allianz Life Insurance’s growth in unit-linked AUM stands at 36% to Rs 33,300 crore.

9) Bajaj Allianz Life Insurance’s net profit growth was impacted by Covid-19-related claims, which rose over four times to Rs 58 crore after tax during the quarter.