BAJAJ FINSERV LTD. 
By A meeting of the Board of Directors of Bajaj Finserv Limited was held today to consider and approve the results for Q2 FY12.
Bajaj Finserv ? a holding company, is the financial services arm of the Bajaj group with business interest in?Protection?, ?Lending?, and ?Financial advisory and Wealth management? through its subsidiary companies.
While the total income for Q2 FY12 is up by 52%, Profit After Tax has more than doubled to ` 158 crore. The strong results are due to the performance of the underlying subsidiaries, each of which has reported robust numbers.
HIGHLIGHTS ?
Q2 FY12 v/s Q2 FY11
? Life insurance, business profit ? ` 295 crore v/s ` 199 crore ? 48%
? General insurance, profit after tax ? ` 64 crore v/s ` 35 crore ? 83%
? Bajaj Finance, profit after tax ? ` 87 crore v/s ` 53 crore ? 64%
? Consolidated profit after tax ? ` 158 crore v/s ` 69 crore ? 129%
H1 FY12 v/s H1 FY11
? Life insurance, business profit ? ` 572 crore v/s ` 369 crore ? 55%
? General insurance, profit after tax ? ` 102 crore v/s ` 66 crore ? 55%
? Bajaj Finance, profit after tax ? ` 178 crore v/s ` 100 crore ? 78%
? Consolidated profit after tax ? ` 287 crore v/s ` 135 crore ? 113%
Summary of consolidated results is given in Annexure A.
A synopsis on the performance of the individual companies is given below:
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A. Bajaj Finance Limited (BFL)? Profit after tax - ` 87 crore in Q2 FY12 v/s ` 53 crore in Q2 FY11 ? 64%.
? Deployments ? 58%; ` 3352 crore in Q2 FY12 v/s ` 2128 crore during Q2 FY11.
? Assets under management has crossed ` 10000 crore mark & stood at ` 10071 crore as on
30th September 2011 v/s ` 7571 crore as on 31st March 2011.
? Total income ? 51%; ` 493 crore in Q2 FY12 v/s ` 326 crore during Q2 FY11.
? Loan losses and provisions for Q2 FY12 28% at ` 44 crore v/s ` 61 crore in Q2 FY11.
? Capital adequacy ratio stood at a healthy 18.9%. Summary of financial results is given in Annexure B.
? During the current quarter, the company posted a profit after tax of ` 64 crore v/s ` 35 crore in Q2 FY11 ? an increase of 83%.
? Gross written premium for Q2 FY12 increased by 16% to ` 811 crore v/s ` 702 crore in Q2 FY11.
? Net earned premium for Q2 FY12 was ` 540 crore v/s ` 475 crore in Q2 FY11.
?Combined ratio (excluding motor pool losses) improved by 7.9% from 99.5% in Q2 FY11 to
91.6% in Q2 FY12. Similarly, combined ratio (including motor pool losses) was at impressive 99.4%in Q2 FY12.
?Loss ratio improved by 6.6% from 65.1% in Q2 FY11 to 58.5% in Q2 FY12.
? Cash and investments as on 30th September 2011 stood at ` 4293 crore. Summary of financial results and key ratios is given in Annexure C.
C. Bajaj Allianz Life Insurance Company Limited (BALIC)? BALIC?s business profit for Q2 FY12 was ` 295 crore v/s profit of `199 crore in Q2 FY11
? growth of 48%.
? Shareholders? profit during the current quarter was ` 57 crore v/s ` 8 crore in Q2 FY11.
? Gross written premium was ` 1679 crore in Q2 FY12 v/s ` 2306 crore in Q2 FY11.
? New business premium for Q2 FY12 was ` 564 crore v/s ` 908 crore in Q2 FY11.
? Renewal premium for Q2 FY12 was ` 1115 crore v/s ` 1398 crore in Q2 FY11.
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? Solvency ratio stood at a healthy 447% as on 30th September 2011 as against the minimum regulatory requirement of 150%.
? Total investments as at 30th September 2011 stood at ` 36946 crore.
?In this challenging environment, the company focussed on cost rationalisation initiatives. Ratio of total commission expenses to GWP for the quarter came down from 7.55% to 6.73%.
Summary of financial results is given in Annexure D.
Sanjiv BajajManaging Director19th October 2011
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Annexure ABajaj Finserv Limited Registered Office : Mumbai - Pune Road, Akurdi, Pune 411 035 Corporate Office : Off Pune - Ahmednagar Road, Viman Nagar, Pune - 411 014 | |
CONSOLIDATED RESULTS | |
(` In Crore) | |
Particulars QUARTER QUARTER HALF YEAR HALF YEAR YEAR ENDED ENDED ENDED ENDED ENDED 30.09.2011 30.09.2010 30.09.2011 30.09.2010 31.03.2011 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) | |
Gross revenue i. Gross written premium a) Life Insurance - Bajaj Allianz Life Insurance Co. Ltd. b) General Insurance - Bajaj Allianz General Insurance Co. Ltd. ii. Interest and finance charges - Bajaj Finance Ltd. iii. Income from windpower generation - Bajaj Finserv Ltd. iv. Investment income (excluding accretions on unit linked investment) v. Others Total | 1679 2306 3066 4151 9610 811 702 1609 1420 3129 493 326 945 326 1109 35 19 51 29 42 247 162 478 336 766 16 14 31 25 55 |
Gross revenue i. Gross written premium a) Life Insurance - Bajaj Allianz Life Insurance Co. Ltd. b) General Insurance - Bajaj Allianz General Insurance Co. Ltd. ii. Interest and finance charges - Bajaj Finance Ltd. iii. Income from windpower generation - Bajaj Finserv Ltd. iv. Investment income (excluding accretions on unit linked investment) v. Others Total | 3281 3529 6180 6287 14712 |
Income from operations 714 471 1326 594 1508 Transfer from Policyholders' Account - - - - 935 TOTAL INCOME 714 471 1326 594 2443 Expenditure : a) Transfer to Policyholders' Account 2 32 3 51 32 b) Employees Cost 67 49 128 62 177 c) Marketing & Other Commission 38 21 72 21 85 d) Recovery Cost 22 11 39 11 38 e) Provision for Doubtful Debts net and Bad Debts written off 44 61 78 61 144 f) Depreciation 4 6 8 9 20 g) Other expenditure 51 43 100 51 133 h) Total 228 223 428 266 629 Profit from Operations before Other Income, Interest & Exceptional 486 248 898 328 1814 Other Income - - 1 1 1 Profit before Interest & Exceptional Item 486 248 899 329 1815 Interest 166 83 309 83 305 Profit after Interest but before Exceptional Item 320 165 590 246 1510 Exceptional item Surplus on pre-payment of sales tax deferral incentive/loan liability - - - - 139 Profit / (Loss) from ordinary activities before tax and share of profit on Investments in Associates 320 165 590 246 1649 Add: Share of Profit after tax on Investments in Associates - - - 21 21 Profit / (Loss) from ordinary activities before tax 320 165 590 267 1670 Tax expense 92 59 169 83 178 Profit / (Loss) after tax 228 106 421 184 1492 Less: Minority Interest in Net Income of subsidiaries 70 37 134 49 377 Net Profit / (Loss) for the period 158 69 287 135 1115 Basic and Diluted Earnings Per Share ( `) (not annualised) before and after extraordinary items 10.9 4.8 19.8 9.4 77.1 |
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Annexure B - Summary financial results of BFL` in crore | Q2 FY12 | Q2 FY11 | H1 FY12 | H1 FY11 | FY 11 |
Total income | 493 | 326 | 945 | 623 | 1406 |
Interest and finance charges | 167 | 83 | 310 | 156 | 378 |
Net interest income | 326 | 243 | 635 | 467 | 1028 |
Operating expenses | 153 | 104 | 293 | 196 | 453 |
Loan losses & provisions | 41 | 61 | 72 | 122 | 190 |
General provisions | 3 | - | 6 | - | 15 |
Profit before tax (PBT) | 129 | 78 | 264 | 149 | 370 |
Profit after tax (PAT) | 87 | 53 | 178 | 100 | 247 |
Earnings per share (EPS), basic | 23.8* | 14.4* | 48.6* | 27.2* | 67.5 |
*Not annualised
Annexure C - Summary financial results of BAGIC` in crore | Q2 FY12 | Q2 FY11 | H1 FY12 | H1 FY11 | FY 11 |
Gross Written Premium * | 811 | 702 | 1609 | 1420 | 2905 |
Net Earned Premium * | 540 | 475 | 1067 | 929 | 1931 |
Underwriting profit/(loss) excluding Motor pool losses | 45 | 2 | 63 | -4 | 27 |
Provision for Motor Pool losses | -42 | -11 | -84 | -22 | -246 |
Interest and dividend income/capital gain & other | 90 | 62 | 172 | 125 | 281 |
Profit before tax | 93 | 53 | 151 | 99 | 62 |
Profit after tax | 64 | 35 | 102 | 66 | 43 |
Loss Ratio | 58.5% | 65.1% | 61.7% | 66.8% | 63.4% |
Combined ratio (including pool losses)** | 99.4% | 101.8% | 102.0% | 102.7% | 110.2% |
* Figures are excluding inward reinsurance premiums from motor pool
** (Net claims incurred + Net commission + operating expenses ) / Net earned premium
Annexure D - Summary financial results of BALIC` in crore | Q2 FY12 | Q2 FY11 | H1 FY12 | H1 FY11 | FY 11 |
Gross Written Premium | 1679 | 2306 | 3066 | 4151 | 9610 |
New Business Premium | 564 | 908 | 942 | 1511 | 3466 |
Renewal Premium | 1115 | 1398 | 2124 | 2640 | 6144 |
Policyholders? surplus* | 238 | 191 | 463 | 348 | 962 |
Shareholders? Surplus | 57 | 8 | 109 | 21 | 95 |
Total Profit (Shareholders?+Policyholders?) | 295 | 199 | 572 | 369 | 1057 |
*Policyholders? surplus, if any, will be transferred to shareholders? account only in Q4 FY12 after audited accounts.
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