Bajaj Finserv Q4FY18 result expectation

We expect the quarterly earnings of Bajaj Finserv Ltd to be in-line with the consensus estimates.

May 17, 2018 03:05 IST India Infoline News Service

Consensus estimates for Q4FY18E
  • Total income – Rs8,500cr, up by 20.7%, with a robust traction in finance and general insurance business of the company. Life insurance business is expected to continue recovery path backed by new business premium and steady renewals. AUM growth under finance arm is expected to be around 35% yoy.
  • Consolidated net profit after tax – Rs1,168cr, up by 42.7%, on account of likely improvement in the combined ratio of the general insurance business and marginal improvement in value of new business (VNB) margin. However, net interest margin (NIM) for finance business is expected to drop to ~9% in Q4FY18 as against ~10.7% in Q3FY18 as Q3 is a seasonally strong quarter for the arm (Bajaj Finance).
Q3FY18 performance highlights
  • Total income – Rs7,665cr, up 21.3% yoy, on account of 23% yoy rise in gross written premium under general insurance business and 20% yoy rise in new business premium under life insurance business.
  • Consolidated net profit after tax – Rs1,203cr, up 26.5% yoy, on improvement in NIM under finance arm and improved combined ratio under general insurance business.
Remarks
  • Overall performance is expected to remain healthy with a robust trajectory in finance and general insurance segments.
  • AUM growth across segments would result into higher total income for the company.
  • Post slower growth in the Q3FY18 led by crop business, traction in general insurance premium is expected to remain high around ~25% coupled with a favorable combined ratio at 92-94%.

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