Bajaj Finserv surges on strong first quarter result; stock split, bonus



Bajaj Finserv jumped 9.16% to Rs 14,522 after the company’s consolidated net profit rose 57% to Rs 1,309 crore on a 14% rise in total revenue to Rs 15,888 crore in Q1 FY23 per compared to Q1 FY22.

Profit before tax in Q1 FY23 stood at Rs 3,593.91 crore, up 103.3% from Rs 1,767.10 crore in Q1 FY22.

Total expenditure increased by 0.91% to Rs 12,294.04 crore. Personnel costs increased by 59.7% to Rs 1,977.18 crore in the first quarter of FY23 compared to the first quarter of FY22.

Meanwhile, the Bajaj Finserv Board of Directors has approved the 5 for 1 stock split and 1:1 free share issue. The company will split each equity share with a nominal value of Rs 5 each in Rs 1 each. Later, he will issue one fully paid capital share with a face value of Rs 1 each for one capital share with a face value of Rs 1 each. This is subject to shareholder approval.

Bajaj Finserv is the holding company for the various financial services businesses of the Bajaj Group. It participates in the financing business through its 52.49% stake in Bajaj Finance and in the protection business through its 74% stake in two unlisted subsidiaries, Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company.

Bajaj Finance recorded a 159% jump in consolidated net profit to Rs 2,596 crore in the first quarter of FY23 compared to the first quarter of FY22, mainly due to robust growth in assets under management, higher net interest income and better asset performance. Total revenue for the first quarter of FY23 increased by 38% to Rs 9,283 crore from Rs 6,743 crore posted in the first quarter of FY22.

Assets under management (AUM) as of June 30, 2022 was Rs 204,018 crore compared to Rs 159,057 crore as of June 30, 2021, registering a 28% year-on-year increase.

Bajaj Allianz General Insurance Company (BAGIC) gross written premium for the first quarter of FY23 increased by 25% to Rs 3,119 crore from Rs 2,494 crore posted in the first quarter of FY22. Rs 108 crore in the first quarter of FY23. Net premium earned increased by 2% to Rs 1,852 crore in the first quarter of FY23 from Rs 1,815 crore in the first quarter of FY23. 22.

The loss ratio increased to 77.9% in Q1 FY23 from 75.9% in Q1 FY22, mainly due to higher severity (impact of inflation) in the motor and health segments. The combined ratio was 104.6% in Q1 FY23 compared to 103.4% in Q1 FY22, mainly due to a higher claims ratio.

Profit after tax for the first quarter of FY23 was Rs 411 crore, up 14% from Rs 362 crore in the first quarter of FY22.

As of June 30, 2022, the solvency ratio stood at 349%, well above the minimum regulatory requirement of 150%. Assets under management (AUM), represented by cash and investments as of June 30, 2022, stood at Rs 25,362 crore (up 8% year-on-year).

Bajaj Allianz Life Insurance Company (BALIC) New business premium for the first quarter of FY23 more than doubled to Rs 2,917 crore from Rs 1,296 crore in the first quarter of FY22. FY23 was Rs 1,452 crore (up 19% YoY).

Gross written premium for the first quarter of FY23 increased by 74% to Rs 4,369 crore from Rs 2,516 crore in the first quarter of FY22.

Shareholders’ profit after tax in the first quarter of FY23 was Rs 124 crore, an increase of 48% from Rs 84 crore in the first quarter of FY22.

The solvency ratio stood at 527% at June 30, 2022, compared to a regulatory minimum of 150%. Assets under management (AUM}, represented by total investments increased by 8% to Rs 83,072 crore as of June 30, 2022 from Rs 77,270 crore as of June 30, 2021.

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

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