Bajaj Finserv records 57% surge in Q1 profit, announces 1:1 bonus issue

Revenue from operations during the quarter advanced 14 percent year-on-year to Rs 15,888 crore, up from Rs 13,949 crore.

July 28, 2022 / 12:30 PM IST
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Bajaj Finserv on July 28 said is consolidated net profits for the quarter ended June climbed 57 percent to Rs 1,309 crore from Rs 833 crore a year ago.

Revenue from operations during the quarter advanced 14 percent year-on-year to Rs 15,888 crore, up from Rs 13,949 crore.

The Board of Directors of Bajaj Finserv also approved sub-division of equity shares of face value Rs 5 each. It will be followed by bonus issue of one share for every share held by shareholders. This is subject to shareholders' approval, the company said.

The announcement sent stock up over 8 percent to Rs 14,382.50 on BSE.

Bajaj Finserv is essentially a holding company and has three material subsidiaries. Bajaj Finance, Bajaj Allianz General Insurance Company Limited (BAGIC) and Bajaj Allianz Life Insurance Company Limited (BALIC).

Bajaj Finance on July 27 reported net profit growth of 159 percent to Rs 9,283 crore. Its total income for Q1 also increased by 38 percent to Rs 9,283 crore.

Bajaj Finserv said gross written premium during the quarter for BAGIC increased by 25 percent to Rs 3,119 crore compared to Rs 2,494 crore in the same quarter last year. BAGIC also wrote government health insurance Rs 108 crore. Its net earned premium was Rs 1,852 crore against Rs 1,815 crore in Q1FY22.

Its profit after tax increased by 147 percent to Rs 411 crore from Rs 362 crore a year ago. For BAGIC, Assets Under Management (AUM), represented by cash and investments as on 30 June 2022 stood at Rs 25,362 crore versus 23,505 crore as on 30 June 2021 - an increase of 8 percent.

The company said, for BALIC, gross written premium for Q1 increased by 74 percent to Rs 4,369 crore from Rs 2,516 crore in the year ago period. New business premium more than doubled to ' Rs 2,917 crore while renewal premium increased 19 percent to Rs 1,452 crore. Profit after tax during Q1 stood at Rs 124 crore, up 48 percent from Rs 84 crore.

Net New Business Value (NBV), which is the metric used to measure profitability of life insurance business, was significantly higher to Rs 135 crore in Q1FY23 against Rs 25 crore in Q1FY22, Bajaj Finserv said.
Moneycontrol News
first published: Jul 28, 2022 12:21 pm