Bajaj Finserv Q4 profit surges 20% to ₹2,119 cr

Bajaj group holding company Bajaj Finserv recorded a 36% rise in consolidated income for the January-March quarter of 2023-24 at ₹32,042 crore against ₹23,625 crore in the same quarter last year. The company's profit surged 20% to ₹2,119 crore against ₹1,769 crore in the said quarter, according to a stock exchange filing. In Q4, Bajaj Finserv consolidated assets under management (AUM) crossed ₹3,30,000 crore against ₹247.379 crore as of March 31, 2023 -- an increase of 34%.

Amid favourable macroeconomic conditions, Bajaj Finserv says it delivered strong operating performance, with its subsidiary Bajaj Finance seeing its customer franchise grow to 14.5 million while the number of new loans booked surged to 36.2 million.

The company's board also recommended a dividend of 1 per share for the quarter, taking the total payout to ₹159.55 crore for FY24.

Bajaj Finance, which declared its quarterly results on Thursday, reported a 21% year-on-year increase in consolidated net profit in Q4 FY24 at ₹3,825 crore. The NBFC's net interest income (NII) increased 28% YoY to ₹8,013 crore.

The number of new loans booked grew by 4% in Q4 FY24 to 7.87 million against 7.56 million in Q4 FY23, though Bajaj Finance says the number was lower by 0.80 million in the wake of the recent RBI curbs.

Bajaj Finserv's insurance unit Bajaj Allianz General Insurance Company Limited (BAGIC) saw its profit after tax surge 18% in Q4 FY24 to ₹380 crore against ₹322 crore in Q4 FY23. Gross written premium for Q4 FY24 increased by 32% to ₹4,962 crore vs ₹3,766 crore in Q4 FY23, while the net earned premium increased 17% to ₹2,338 crore YoY.

Bajaj Allianz Life Insurance Company Limited (BALIC) reported profit after tax at ₹106 crore against 26 crore in the year-ago period. Its renewal premium for Q4 FY24 stood at ₹4,230 crore against ₹3,137 crore in the year-ago period, up 35%.

For the full fiscal year, Bajaj Finserv reported a 34% increase in total income at ₹1,10,383 crore against ₹82,072 crore in the year-ago period. The FY24 profit was ₹8,148 crore against ₹6,417 cr in the year-ago period.

Bajaj Finserv says during the quarter, Bajaj Allianz General Insurance became the 3rd largest general insurer in terms of gross direct premium. Bajaj Allianz Life Insurance’s AUM crossed ₹100,000 crore and Bajaj Finserv Asset Management’s AUM stood at ₹9,552 crore in the first year of launch.

The company stock dipped 3.46% to ₹1,598.45 on the BSE today after a gap-down opening. The scrip fell to an intra-day low of ₹1,580. The share of Bajaj Finserv is currently trading down 8.2% compared to the 52-week high of ₹1,741.85 touched on December 15, 2023. At this share price, its m-cap stands at ₹2.55 lakh crore. Bajaj Finserv's share has risen just 19.65% in the past year, while its six-month return is 1.89%.