Bajaj Finserv

Bajaj Finserv reported 55% rise in total consolidated income at Rs 825.19 crore for the quarter ended December 2011 compared to corresponding previous year period while bottomline rose 59% to Rs 170.06 crore.

For the purpose of consolidated financials the surplus of the insurance business revenue accounts together with shareholders income in accordance with the reporting framework of IRDA, amounted to Rs.177.42 crore for Q3FY'12 up by 72% compared to corresponding previous year period. Transfers from Policyholders' revenue accounts is recognized in total income, but does not form part of segment revenue as for reporting segment information, segment revenues for both insurance businesses represent the premiums earned and other income

Segment wise Income from operations from Investments and others fell 26% to Rs 26.19 crore, Retail financing rose 55% to Rs 603.56 crore while from windmills it jumped 208% to Rs 20.31 crore. Segment wise revenues also includes inter segment revenues.

OPM of the company rose 690 bps to 70.6% leading operating profit growth of 72% at Rs 582.37 crore. Other income was negligible at Rs 0.38 crore. Interest cost doubled to Rs 207.21 crore from Rs 103.56 crore up by 100%. As a result PBDT rose 59% to Rs 375.54 crore. Depreciation fell 31% to Rs 3.94 crore. PBT rose 62% to Rs 371.60 crore.

For the nine months ended December 2011 total consolidated revenues of the company rose 91% to Rs 2151.49 crore while net profit rose 89% to Rs 456.98 crore.

For the purpose of consolidated financials the surplus of the insurance business revenue accounts together with shareholders income in accordance with the reporting framework of IRDA, amounting to Rs.461.96 crore for 9MFY'12 up by 65% compared to corresponding previous year period. Transfers from Policyholders' revenue accounts is recognized in total income, but does not form part of segment revenue as for reporting segment information, segment revenues for both insurance businesses represent the premiums earned and other income.

Segment wise Income from operations from Investments and others fell 11% to Rs 96.97 crore, Retail financing rose 117% to Rs 1548.61 crore while from windmills it increased 99% to Rs 71.61 crore. Segment wise revenues also includes inter segment revenues

Bajaj Finance (BFL) became a subsidiary of the company from 5 July 2010. Accordingly, BFL has been consolidated as a subsidiary from that date. Prior to that date, BFL was consolidated as an associate. Hence, the consolidated financial results for the nine months ended 31 December 2011 are not comparable with those of the prior period.

OPM of the company improved 910 bps to 69.2% leading operating profit growth of 120% at Rs 1488.13 crore. Other income was negligible at Rs 1.29 crore. Interest cost jumped 176% to Rs 515.66 crore from. As a result PBDT rose 98% to Rs 973.76 crore. Depreciation fell 21% to Rs 11.92 crore. PBT rose 102% to Rs 961.84 crore. The final bottomline of the company rose 89% to Rs 456.98 crore.

• Profit after tax of Rs 120 crore in Q3 FY12 against Rs 76 crore in Q3 FY11 up by 58%.
• Deployments up by 68% to Rs 4649 crore in Q3 FY12 against Rs 2774 crore during Q3 FY11
• Assets under management stood at Rs 11919 crore as on 31st December 2011 against Rs 7571 crore as on 31st March 2011.
• Gross income up 55% to Rs 603 crore in Q3 FY12 against Rs 388 crore during Q3 FY11
• Loan losses and provisions for Q3 FY12 20% stood at Rs 36 crore against Rs 45 crore in Q3 FY11. Net NPA for Q3 FY12 stood at 0.25%
• Capital adequacy ratio stood at a healthy 17.3%.

Bajaj Allianz General Insurance Company (BAGIC)

• During the current quarter, the company posted a profit after tax of s 60 crore against Rs 35 crore in Q3 FY11, an increase of 71%.
• Gross written premium for Q3 FY12 increased by 15% to Rs 775 crore against Rs 675 crore in Q3'FY11
• Combined ratio (excluding motor pool losses) improved 8% from 99.4% in Q3 FY11 to 91.4% in Q3 FY12. Similarly, combined ratio (including motor pool losses) was at impressive 98.9% in Q3 FY12.
• Loss ratio improved by 6.1% from 64.2% in Q3 FY11 to 58.1% in Q3 FY12.
• Cash and investments as on 31st December 2011 stood at Rs 4220 crore.
• IRDA has recently issued Order dated 3rd January 2012 directing member companies of the Indian Motor Third Party Insurance Pool to carry as a reserve, in respect of Motor Pool losses, calculated at an Ultimate Loss Ratio of 159%, 188%, 200% and 213% for the years 2007-08 to 2010-11 respectively and consequently relaxed the Solvency Margins required to be maintained for the next 4 years starting 31st March 2012. Based on discussion with IRDA officials of the company with respect to the timing of the recognition of the said reserve, it has been clarified that the said amount is intended to be provided as at 31st March 2012 and consequent to this the relaxation in the Solvency Margin, as per the order, has been made available w.e.f. 31st March 2012.
• The company is also awaiting clarifications on the various issues raised by the industry arising out of the above said Order. In the event of the company being required to provide for the motor pool losses for all the years from 2007-08 as per the above order, the additional liability that would be required to be booked on 31st March 2012, works out to approximately Rs 329 crore

• BALIC business profit for Q3 FY12 was Rs 283 crore against profit of Rs 300 crore in Q3 FY11.
• Shareholders profit during the current quarter was Rs 63 crore against Rs 40 crore in Q3 FY11.
• Gross written premium was Rs 1674 crore in Q3 FY12 against Rs 2256 crore in Q3 FY11.
• New business premium for Q3 FY12 was Rs 653 crore against Rs 826 crore in Q3 FY11. The decline in new business premium for Q3 FY 12 was 21% compared to 37% and 38% respectively for Q1 FY12 and Q2 FY12.
• Renewal premium for Q3 FY12 was Rs 1021 crore against Rs 1430 crore in Q3 FY11.
• Solvency ratio stood at a healthy 504% as on 31st December 2011 as against the minimum regulatory requirement of 150%.
• Total investments as at 31st December 2011 stood at Rs 35545 crore.

The scrip is currently trading at Rs 451.35.

Bajaj Finserv: Consolidated Results

Bajaj Finserv: Consolidated Segment Results