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Below the views of Shreyansh V. Shah, Research Analyst, StoxBox on Bajaj Finserv Q4 FY24 results

Bajaj Finserv Ltd. Q4FY24 First Cut - Robust consolidated performance as Bajaj Finance and holding insurance companies deliver results

Bajaj Finserv Ltd.

* Consolidated total income rose to Rs. 32,042 crores in Q4FY24 from Rs. 29,038 crores in Q4FY23.

* Consolidated profit after tax rose to Rs. 2,119 crores in Q4FY24 from Rs. 1,769 crores in Q4FY23.

Bajaj Finance Ltd.

* Total income for Q4FY24 rose to Rs. 9,714 crores from Rs. 7,438 crores in Q4FY23.

* Profit after tax for Q4FY24 increased to Rs. 3,825 crores v/s Rs. 3,158 crores in Q4FY23, led by AUM growth, higher net interest income, and stable asset performance. This includes profit after tax of its 100% mortgage subsidiary, BHFL, of Rs. 381 crores in Q4FY24 v/s Rs. 302 crores in Q4FY23 - an increase of 26%. Despite the impact of regulatory restrictions and increased losses in the rural B2C segment, it reported an all-around performance across all key parameters in Q4FY24, in line with the street estimates. However, increased cost of funds continues to be a concern.

* Assets Under Management (AUM) as on 31 March 2024 were Rs. 3,30,615 crores v/s Rs. 2,47,379 crores as on 31 March 2023 - an increase of 34%. This includes AUM of Rs. 91,370 crores of BHFL, which recorded a growth of 32% over the AUM as on 31 March 2023.

* Gross Non-Performing Assets (NPA) and Net NPA as on 31 March 2024 stood at 0.85% and 0.37%, respectively, as against 0.94% and 0.34% as on 31 March 2024. The provisioning coverage ratio on stage 3 assets is 57%. BFL holds a management and macroeconomic overlay of Rs. 300 crores as on 31 March 2024.

* Capital adequacy ratio (CRAR) (including Tier-II capital) as on 31 March 2024 stood at 22.52%. The Tier-I capital stood at 21.51%.

* The company’s ‘eCOM’ and ‘Insta EMI Cards’ remains restricted. The company has made required changes under the regulatory restriction which led to lower loan book growth on account of fewer onboardings under the products. However, the company has formally requested the RBI for the removal of restrictions.

Bajaj Allianz General Insurance Company Ltd.

* Gross written premium for Q4FY24 increased by 32% to Rs. 4,962 crores v/s Rs. 3,766 crores in Q4FY23. Excluding tender-driven crop and government health insurance premiums, BAGIC's gross written premium increased to Rs. 3,780 crores in Q4FY24 from Rs. 3,345 crores in Q4FY23.

* Net earned premium increased 18% to Rs. 2,338 crores for Q4FY24 v/s Rs. 1,990 crores in Q4FY23.

* Claim ratio increased to 70.3% in Q4FY24 v/s 66.4% in Q4FY23. The increase in the claim ratio is largely attributable to higher claims in Health and Motor TP segments partially offset by lower commercial and crop claims.

* Combined ratio stood at 101.6% in Q4FY24 v/s 97.3% in Q4FY23 due to higher claims.

* Underwriting loss stood at Rs. 76 crores for Q4FY24 v/s loss of Rs. 2 crores in Q4FY23.

* Investment and other income (net) for Q4FY24 increased by 31% to Rs. 566 crores as against Rs. 431 crores in Q4FY23. Profit on sale of investments was higher by Rs. 36 crores (before tax) in Q4FY24. Excluding profit on sale of investments, investment and other income (net) has shown a healthy growth of 17%.

* Profit after tax for Q4FY24 increased by 18% to Rs. 380 crores v/s Rs. 322 crores in Q4FY23.

* As on 31 March 2023, the solvency ratio was 349%, which is well above the minimum regulatory requirement of 150%.

* Assets Under Management (AUM), represented by cash and investments as on 31 March 2024 stood at Rs. 31,196 crore v/s Rs. 27,809 crores as on 31 March 2023 - an increase of 12%.

Bajaj Allianz Life Insurance Company Ltd.

* Gross written premium for Q4FY24 increased by 27% to Rs. 8,183 crores v/s Rs. 6,434 crores in Q4FY23.

* New business premium for Q4FY24 increased by 20% to Rs. 3,953 crores v/s Rs. 3,297 crores in Q4FY23.  

* Renewal premium for Q4FY24 stood at Rs. 4,230 crores v/s Rs. 3,137 crores in Q4FY23 - an increase of 35%.

* Shareholders' profit after tax during Q4FY24 increased to Rs. 106 crores v/s Rs. 26 crores in Q4FY23.

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