Bajaj Finserv Q4 consolidated profit jumps 37%, revenue up almost 23%

Non-banking finance company Bajaj Finserv Ltd reported a 37.5% year-on-year rise in its consolidated net profit for the fourth quarter ended March 2022.

Profit jumped to Rs 1,346 crore from Rs 979 crore during the same period last fiscal year, the company said. 

Bajaj Finserv’s net revenue was up 22.58% for the quarter at Rs 18,862 crore from Rs 15,387 crore in the previous year’s fourth quarter. 

The company’s board of directors recommended a dividend of Rs 4 per share, it said in an exchange filing. This will amount to a total dividend payout of Rs 64 crore during the just concluded financial year, up from Rs 48 crore during the previous financial year. 

These earnings reflect the consolidated earnings of its ownership in Bajaj Finance, Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company.

Other Key Highlights

1) Customer franchise stood at 57.57 million as of March 31, 2022, up 19% from 48.57 million a year earlier.

2) Bajaj Finance consolidated profit after tax for the fourth quarter at Rs 2,420 crore vis-a-vis Rs 1,347 crore.

3) General insurance unit’s Q4 profit at Rs 248 crore, down from Rs 273 crore during the same period last year.

4) Life insurance unit’s Q4 profit down significantly at just Rs 48 crore from Rs 234 crore. 

5) Consolidated total income in 2021-22 at Rs 68,439 crore as against Rs 60,592 crore the previous year. 

6) Consolidated net profit for 2021-22 at Rs 4,557 crore as against Rs 4,470 crore in 2020-21.

7) Bajaj Finance consolidated profit for 2021-22 at Rs 7,028 crore as against Rs 4,420 crore in 2020-21.

8) General insurance unit’s profit for 2021-22 at Rs 1,339 crore as against Rs 1,330 crore for 2020-21.

9) Life insurance unit’s profit for 2021-22 at Rs 324 crore, down from Rs 580 crore in 2020-21.

Management commentary

Bajaj Finserv said the business environment had improved during the fourth quarter ended March 2022, significantly, even as volatility brought on by the war in Ukraine persisted. 

The company, which is a major financier of auto loans, said “lower sales of automobiles due to supply chain problems affected the general insurance business, the overall environment was conducive and all our businesses recorded excellent growth.”

Bajaj Finserv further said that its general insurance unit maintained its market position and underwriting discipline where most peers continued to chase market share. It also recorded the highest ever gross written premium and profit after tax in FY22.

On its life insurance unit, it said that the subsidiary continued its “excellent performance” and recorded “industry-beating growth” of 49% in individual-rated new business premium in FY22. It also recorded the highest ever gross written premium and strong growth in new business value in FY22.

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