Bajaj Finserv Q4 PAT grows 5-fold to Rs979cr on sharply lower interest and asset impairment costs

Bajaj Finserv Ltd reported 15.74% yoy growth in consolidated top-line revenues for the Mar-21 quarter at Rs15,387.25cr

Apr 28, 2021 01:04 IST India Infoline News Service

Bajaj Finserv Ltd reported 15.74% yoy growth in consolidated top-line revenues for the Mar-21 quarter at Rs15,387.25cr. The biggest growth came in the insurance premium income from its Bajaj Allianz business which accounted for nearly 50% of the total revenues,

Bajaj Finserv is the holding company of the financial services franchise of the Bajaj Group. Interest income, which accounted for 45% of the total revenues was lower on a yoy basis due to lower debt yields. However, top-line revenues were lower -3.6% sequentially.

For the Mar-21 quarter, the consolidated operating profits or pre-tax profits in this case were up 197.45% at Rs2,358.50cr. The big boost to operating profits came from the revenue surge yoy but also from key items of costs and provisions that reduced in the Mar-21 quarter.

For example, there was a sharp fall in finance costs as well as a 35% fall in impairment provisions for the lending portfolio. Above all, the net impact of fair value changes was better by nearly Rs2,000cr in the current quarter on a yoy basis. The OPM was up sharply from 5.96% in the Mar-20 quarter to 15.33% in Mar-21 quarter. OPM was however, lower on a sequential basis by over 200 bps.

The consolidated Profit after tax (PAT) for the Mar-21 quarter was up 403.55% at Rs979.06cr. There was a perceptible improvement in the profitability of the lending and the insurance business during the quarter. Net profit margins or NPM improved from 1.46% to 6.36% on a yoy basis. However, net margins were lower on a sequential basis.

Financial highlights for Mar-21 compared yoy and sequentially

Bajaj Finserv Ltd
Rs in Crore Mar-21 Mar-20 YOY Dec-20 QOQ
Total Income (Rs cr) ₹ 15,387.25 ₹ 13,294.25 15.74% ₹ 15,960.72 -3.59%
Operating Profits (Rs cr) ₹ 2,358.50 ₹ 792.90 197.45% ₹ 2,779.16 -15.14%
Net Profit (Rs cr) ₹ 979.06 ₹ 194.43 403.55% ₹ 1,289.96 -24.10%
Diluted EPS (Rs) ₹ 61.50 ₹ 12.20 ₹ 81.00
Operating Margins 15.33% 5.96% 17.41%
Net Margins 6.36% 1.46% 8.08%

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