Bajaj Finserv Q4 Results Update

On 28th April 2022, Bajaj Finserv announced its quarterly results for the last quarter of FY2022.

Key Highlights:

For Q4FY22:

Profitability:

- Profit after tax (PAT) for Q4 FY22 increased by 80% to Rs. 24,195 million compared to Rs. 13,466 million in Q4 FY21

- For FY22, PAT stood at Rs. 70,282 million as compared to Rs. 44,198 million in FY21; Highest ever PAT for the quarter and the entire year 

- Capital adequacy remained very strong at 27.22% as of 31 Mar 2022. Tier-1 capital was 24.75%

Revenue:

- The total revenue from operations jumped 22.58 percent to Rs 18,862 crore for Q4FY22 from Rs 15,387 crore in Q4FY21.

AUM:

- Q4 FY22 AUM was at Rs. 1,974,517 million vs Rs. 1,529,471 million last year (29% growth)

- 6.28 million new loans in Q4 FY22 as against 5.47 million in Q4 FY21 

- Acquired 2.21 million new customers in Q4 FY22 vs 2.19 million in Q4 FY21

- In FY22, customer franchise recorded the highest ever increase of 9 million 

- Total customer franchise stood at 57.57 million as of 31 March 2022 saw a 19% growth YoY; Cross-sell franchise grew by 22% to 32.77 million

NII:

- Net Interest Income (NII) for Q4 FY22 was Rs. 60,677 million vs Rs. 46,594 million in Q4 FY20; NII for FY22 was Rs. 218,922 million vs 172,691 million in FY21 saw a 27% growth

- The Company is carrying a liquidity buffer of Rs. 101,103 million normalized to pre-COVID levels

- As of 31 March 2022, the deposit book stood at Rs. 307,995 million with a growth of 19% YoY 

- Operating expense in FY22 was higher as the company continues to invest in teams and technology for business transformation 

- Opex to NII came in at 34.6% vs 34.5% in Q4 FY21; Opex to NII for FY22 was 34.6% as against 30.7% in FY21

Credit costs:

- Loan losses & provisions for the Q4 FY22 were Rs. 7,016 million vs Rs. 12,308 million in Q4 FY21 

- FY22 loan losses and provisions were Rs. 48,034 million vs Rs. 59,686 million in FY21 in line with earlier guidance 

- Continues to carry a management overlay of Rs. 10,600 million as of 31 March 2022

- GNPA & NNPA as of 31 March 2022 stood at 1.60% & 0.68% respectively as compared to 1.79% and 0.75% as of 31 March 2021

Bajaj Finserv's general insurance gross written premium grew 11.5 percent (QoQ) and 18.4 percent (YoY), while its life insurance gross written premium was up by 40 percent (QoQ) and 27 percent (YoY). 

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 percent. Customer franchise recorded the highest ever increase of 9.0 million in FY22.

The Board of Directors recommended a dividend of Rs. 4 per share. The total amount of dividend is Rs. 64 crores for the financial year 2021-2022. 

The company stated that business conditions improved significantly in Q4FY22 although they were volatile due to the outbreak of war in Ukraine. "Although 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," it added. 

Shares of Bajaj Finserv on Thursday traded 1.22 percent higher.