Bajaj Finserv Limited- Q2 Results

Introduction

Bajaj Finserv Ltd. (BFS) is a leading non-banking financial services company in the country that prioritises lending, asset management, wealth management, and insurance. The company was founded in May 2007 and has stakes in the financing, life insurance, general insurance, and mutual fund sectors. Its subsidiaries include Bajaj Finance, Bajaj Allianz Life Insurance, Bajaj Allianz General Insurance, and Bajaj Housing Finance, among others. The company serves more than 100 million customers, offering a suite of financial solutions.

The company disclosed its financial results for Q2 FY 2023-24 on October 27th and reported a rise of 24% YoY in its net profit. Here are some of the key facts and figures as per the exchange filing.

Additional Read: Q2 Results Dashboard

Key Financial Metrics

Performance Highlights (Consolidated)

• Bajaj Finserv reported a consolidated net profit of ₹1,928.96 Cr for Q2 FY 2023-24, up 24% YoY from ₹1,556.93 during Q2 FY 2022-23.
• The company’s consolidated revenue from operations increased by 25% YoY to ₹26,022.66 Cr, compared to ₹20,803.22 Cr during the corresponding quarter last year.
• The consolidated net worth of the enterprise jumped 20% YoY to ₹50,873 Cr compared to ₹42,462 Cr during the same period the previous year.
• The consolidated book value per share stood at ₹319 at the end of the September quarter as against ₹267 during Q2 FY 2022-23.

Subsidiary Performance

Bajaj Finance Limited

Bajaj Finserv Ltd. holds a stake of 52.45% in Bajaj Finance Ltd.

• Total income of Bajaj Finance rose 34% YoY to ₹13,382 Cr during the second quarter of the fiscal year from ₹9,974 Cr during the same period last year.
• The entity’s PAT grew by 28% YoY to ₹3,551 Cr from ₹2,781 during Q2 FY 2022-23.
• AUM of Bajaj Finance, as of the quarter ended on September 30, 2023, stood at ₹290,264 Cr, up 33% from ₹218,366 Cr during the corresponding period last year.
• The net interest income (NII) for the period under review stood at ₹8,845 Cr compared to ₹7,002 Cr during Q2 FY 2022-23.

Additional Read: Bajaj Finance Q2 Results

Bajaj Allianz General Insurance Company (BAGIC)

• PAT of Bajaj Allianz General Insurance grew by 39% YoY to ₹468 Cr during Q2 FY 2023-24, as against ₹336 Cr during Q2 FY 2022-23.
• The net earned premium also rose 8% YoY to ₹2,250 Cr, compared to ₹2,090 Cr reported during the same period last year.
• The gross written premium (GWP) during the period under review increased by 53% YoY to ₹7,298 Cr from ₹4,781 Cr in Q2 FY 2022-23.
• The gross direct premium income (GDPI) rose 53.6% during Q2 FY 2023-24 compared to the private sector growth of 21.2% and industry growth of 18.6%.

Bajaj Allianz Life Insurance Company (BALIC)

• Bajaj Allianz Life Insurance’s net profit increased by 21% YoY to ₹193 Cr during Q2 FY 2023-24 compared to ₹159 Cr during the corresponding period of the previous year.
• BALIC’s GWP rose by 28% YoY to ₹5,338 Cr from ₹4,155 Cr during Q2 FY 2022-23.
• AUM of the entity increased by 14% YoY and stood at ₹98,700 Cr at the end of the second quarter of the fiscal year, as against ₹86,907 Cr during Q2 FY 2022-23.

Bajaj Finserv Direct Limited

• Bajaj Finserv Direct’s total income for the period under review stood at ₹126 Cr versus ₹94 Cr during Q2 FY 2022-23.
• The entity registered a net profit of ₹18 Cr during the second quarter compared to ₹12 Cr during Q2 FY 2022-23.
• Bajaj Finserv Direct’s net worth, as on 30 September 2023, was ₹569 Cr.

Additional Read: Bajaj Finserv Share Price

Management Commentary

Major Announcements

• Bajaj Finserv Ltd., in its notes to accounts, stated that it has expressed its intent to subscribe to the Preferential Issue (PI) of Bajaj Finance Ltd. (BFL) up to an amount not exceeding ₹1,200 Cr. This is subject to the finalisation of terms and conditions for the proposed issue and other considerations.

Bajaj Finserv Limited: H1 Consolidated Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Revenue from Operations	₹36,691.48 Cr	₹49,302.64 Cr
Total Income	₹36,691.71 Cr	₹49,302.64 Cr
Total Expenses	₹28,839.27 Cr	₹38,888.11 Cr
Profit Before Tax	₹7,851.71 Cr	₹10,417.54 Cr
Profit After Tax	₹5,574.19 Cr	₹7,465.14 Cr
Profit for the Period	₹2,866.31 Cr	₹3,871.59 Cr
Total Comprehensive Income	₹4,647.30 Cr	₹8,154.92 Cr

Bajaj Finserv Limited: Consolidated Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Revenue from Operations	₹23,279.98 Cr	₹26,022.66 Cr
Total Income	₹23,279.98 Cr	₹26,022.66 Cr
Total Expenses	₹18,157.41 Cr	₹20,730.70 Cr
Profit Before Tax	₹5,125.37 Cr	₹5,292.17 Cr
Profit After Tax	₹3,709.42 Cr	₹3,755.72 Cr
Profit for the Period	₹1,942.63 Cr	₹1,928.96 Cr
Total Comprehensive Income	₹4,354.35 Cr	₹3,800.57 Cr

Bajaj Finserv Limited: H1 Standalone Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Revenue from Operations	₹1,012.57 Cr	₹1,606.26 Cr
Total Income	₹1,046.26 Cr	₹1,622.34 Cr
Total Expenses	₹91.57 Cr	₹107.09 Cr
Profit Before Tax	₹954.69 Cr	₹1,515.25 Cr
Profit After Tax	₹718.13 Cr	₹1,157.85 Cr
Total Comprehensive Income	₹717.98 Cr	₹1,157.70 Cr

Bajaj Finserv Limited: Standalone Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Revenue from Operations	₹595.21 Cr	₹1,011.05 Cr
Total Income	₹603.27 Cr	₹1,019.07 Cr
Total Expenses	₹54.61 Cr	₹52.48 Cr
Profit Before Tax	₹548.66 Cr	₹966.59 Cr
Profit After Tax	₹403.51 Cr	₹754.34 Cr
Total Comprehensive Income	₹403.44 Cr	₹754.26 Cr

Bajaj Finserv Limited: Consolidated Balance Sheet

Particulars	As of September 30, 2023
Sub-total – Financial Assets	₹4,61,744.06 Cr
Sub-total – Non-financial Assets	₹7,580.12 Cr
Total Assets	₹4,69,324.18 Cr
Sub-total – Financial Liabilities	₹3,79,564.87 Cr
Sub-total – Non-financial Liabilities	₹4,815.91 Cr
Sub-total – Total Equity	₹84,943.40 Cr
Total – Equity and Liabilities	₹4,69,324.18 Cr

Stock Performance

Bajaj Finserv Limited (BFS) declared its financial results for the second quarter of the fiscal year on October 27th. The company’s shares opened at ₹1,570 on Friday and increased by 0.45%, closing at ₹1,566 apiece on BSE.

About the Company

Bajaj Finserv Ltd. (BFS) was established in 2007 after its demerger from Bajaj Auto Limited to become a core investment company (CIC). It is one of the country’s leading providers of financial services, catering to more than 100 million customers. The company’s diversified portfolio allows it to help customers meet their financial needs. Its comprehensive suite of financial solutions includes general and life insurance, investments, and savings products, among others. BFS holds a 52.45% stake in Bajaj Finance Ltd., and its other major subsidiaries include Bajaj Allianz General Insurance Company Ltd. (BAGIC) and Bajaj Allianz Life Insurance Company Ltd. (BALIC).

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Sources:

https://cms-assets.bajajfinserv.in/is/content/bajajfinance/bajaj-finserv-investor-presentation-q2-fy2023-24pdf?scl=1&fmt=pdf

https://cms-assets.bajajfinserv.in/is/content/bajajfinance/bajaj-finserv-q2-resultspdf-17?scl=1&fmt=pdf