Bajaj Finserv Q4 results: Consolidated profit jumps 31.4%

NBFC-major Bajaj Finserv posted a 31.4% growth in consolidated net profit to ₹1,769 crore for the fourth quarter of FY23 compared to a profit of ₹1,346 crore in the same quarter a year ago. Consolidated total income stood at ₹23,625 crore up by 25.2% versus ₹18,862 crore in Q3 of the previous fiscal.

In terms of segments, interest income increased 31% to ₹11,025 crore in the fourth quarter from ₹8,383 crore in the same period the year prior.

In an exchange filing, the company stated that there was ongoing inflationary pressure throughout FY23. During FY23, the RBI raised the repo rate by 250 basis points in order to offset the effects of rate increases made by central banks around the world and to clearly target inflation.

"In April 2023, the RBI kept the repo rate unchanged with a statement that the pause was only for this meeting. Conditions were conducive for savings which resulted in a favourable growth for the life insurance sector. With Covid-19 threat having waned, there was significant increase in vehicles on the road and non-covid treatments which had been postponed earlier, resulting in higher frequency of claims for the general insurance sector. In this environment of higher interest rates and insurance claims, our companies continued to do well," added the company.

Here's how Bajaj Finserv's companies have performed in Q4FY23:

Bajaj Finance Ltd

In comparison to Q4 FY22, the company's overall revenue climbed by 32% to ₹11,363 crore from ₹8,629 crore.

Profit after tax for the fourth quarter of FY23 rose by 30% to ₹3,158 crore from ₹2,420 crore in the fourth quarter of FY22, driven primarily by strong Assets Under Management (AUM) growth, greater net interest income, and improved asset performance.

AUM increased by 25% from ₹197,452 crore on March 31, 2022 to ₹247,379 crore on March 31, 2023.

Gross NPA and Net NPA were 0.94% and 0.34%, respectively, as of March 31, 2023, compared to 1.60% and 0.68% as of March 31, 2022.

Bajaj Allianz General Insurance Co Ltd

In comparison to Q4 FY22, gross written premium climbed 14% to ₹3,766 crore for Q4 FY23.

As compared to ₹1,988 crore in Q4FY22, net earned premium for Q4FY23 was ₹1,990 crore. Assets Under Management (AUM), which include cash and investments, increased by 13% to ₹27,809 crore as of March 31, 2023, from ₹24,633 crore as of March 31, 2022.

Bajaj Allianz Life Insurance Co Ltd

When compared to Q4FY22, gross written premium grew 13% to ₹6,434 crore from ₹5,719 crore in Q4FY23. 

Assets Under Management (AUM), which are total investments, were worth ₹90,584 crore as of March 31, 2023, compared to ₹85,623 crore as of March 31, 2022, a 6% increase.

Bajaj Finserv Q4 results: Firm announces dividend, check details here