Bajaj Finserv Q1 PAT down 31% yoy to Rs 833 cr

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On a consolidated basis, Bajaj Finserv (BFS) recorded a 31.47% drop in net profit to Rs 832.77 crore on a 1.7% drop in total income to Rs 13,949.45 crore in the first quarter of fiscal year 22 compared to the first quarter of fiscal year 21.

On a sequential basis, NBFC’s net profit declined 15% while total income fell 9.3% in the first quarter of fiscal 22 compared to the fourth quarter of fiscal 21. Profit before Taxes fell 25% qoq and 31.19% yoy to Rs 1,767.10 crore in the first quarter of fiscal 22.

BFS is the holding company for the various financial services activities of the Bajaj group. BFS participates in the financing activity through its 52.65% stake in Bajaj Finance (BFL) and in the protection activity through its 74% stake in two unlisted subsidiaries, Bajaj Allianz General Insurance Company (BAGIC ) and Bajaj Allianz Life Insurance Company (BALIC). Bajaj Housing Finance (BHFL), which carries out mortgage business and Bajaj Financial Securities (BFinsec), which carries out brokerage business, are wholly-owned subsidiaries of Bajaj Finance.

Bajaj Finance’s total income for the first quarter of FY22 was Rs 6,743 crore, up 1.4% from Rs 6,650 crore in the first quarter of FY21. Profit after tax for the first quarter of FY22 increased 4% year-on-year to Rs 1,002 crore from Rs 962 crore in the first quarter of FY 21. Profitability before provision remained strong and sufficient to cover expected credit losses. Assets under management (AUM) as of June 30, 2021 stood at Rs 159,057 crore against Rs 138,055 crore as of June 30, 2020, registering an increase of 15%. This includes AUM of Rs 40,941 crore of its housing finance subsidiary, BHFL, which grew 24% from AUM as of June 30, 2020. Gross NPA and Net NPA recognized in accordance with existing and provisioned RBI prudential standards by applying the expected credit loss. (ECL) prescribed in the Ind AS, as of June 30, 2021 was 2.96% and 1.46% respectively.

Bajaj Allianz General Insurance Company’s gross written premiums for the first quarter of fiscal 22 increased 9% to 2,494 crore rupees from 2,289 crore rupees in the first quarter of fiscal 21. Profit after tax for the first quarter of fiscal 22 was Rs 362 crore lower than Rs 395 crore in the first quarter of fiscal 21. The company said it did not take out any crop insurance during the quarter. The net premium earned for the first quarter of fiscal 22 was Rs 1,815 crore compared to Rs 1,818 crore in the first quarter of fiscal 21. The claims ratio increased to 75.9% in the first quarter of fiscal year. EX22, up from 68.1% in the first quarter of FY21, mainly due to a higher COVID claim rate of 14.8%. Underwriting profit stood at Rs 15 crore for the first quarter of fiscal 22, compared to Rs 175 crore in the first quarter of fiscal 21, despite higher COVID-19 claims. As of June 30, 2021, the solvency ratio was 340%, which is well above the regulatory minimum of 150%. Assets under management (AUM), represented by cash and investments as of June 30, 2021, stood at Rs 23,505 crore against Rs 19,611 crore as of June 30, 2020, an increase of 20%.

Bajaj Allianz Life Insurance Company posted after-tax profit of Rs 84 crore in the first quarter of fiscal 22, 35% lower than Rs 130 crore in the first quarter of fiscal 21, mainly due to claims related to the COVID-19. The new business premium for the first quarter of FY22 was Rs 1,296 crore, compared to Rs 742 crore in the first quarter of FY21, an increase of 75%. Meanwhile, the renewal premium for the first quarter of FY22 was Rs 1,220 crore compared to Rs 958 crore in the first quarter of FY21, an increase of 27%. Gross written premiums increased 48% to Rs 2,516 crore in Q1 FY22 from Rs 1,700 crore in Q1 FY21. Assets Under Management (AUM), represented by total investments, stood at Rs 77,270 crore as of June 30, 2021 compared to Rs 60,968 crore as of June 30, 2020, registering an increase of 27%.

Regarding COVID-19, the company said, “With the signs of the second wave ebbing, all of our businesses will be looking for growth opportunities while remaining focused on risk. At the same time, we remain aware and vigilant of a possible third wave. Backed by strong creditworthiness, well above the required capital backed by healthy liquidity, a continued focus on risk and collections, digitized processes and improved cost structures, we are maneuvering through these times.

Bajaj Finserv shares ended down 0.95% at Rs 12,591.40 on Tuesday. The national stock market is closed today because of Bakri Eid.

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(This story was not edited by Business Standard staff and is auto-generated from a syndicated feed.)

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