Bajaj Finserv (BAJAJFINSV) Q4 11/12 earnings summary

Executive summary

• Consolidated profit for the year reached ₹1,337.77 crore, up from ₹1,114.84 crore in FY2011; lending delivered strong growth while life insurance premiums contracted.

• FY2012 operated against a sharp slowdown in Indian GDP growth, high interest rates and policy uncertainty; management expected FY2013 conditions to remain challenging.

Financial highlights

• Consolidated total income was ₹3,904.78 crore vs ₹2,444.57 crore; PBT was ₹2,226.22 crore vs ₹1,648.67 crore, including a ₹139.07 crore exceptional gain in FY2011.

• Consolidated PAT was ₹1,889.75 crore; after ₹551.98 crore minority interest and ₹20.89 crore associate income, profit for the year was ₹1,337.77 crore vs ₹1,114.84 crore.

• Consolidated EPS was ₹92.5 vs ₹77.1; revenue from operations was ₹2,714.62 crore vs ₹1,507.97 crore.

• Standalone PAT was ₹76.57 crore vs ₹188.34 crore; FY2011 included a ₹139.07 crore exceptional gain from prepayment of a sales-tax deferral liability.

Outlook and guidance

• Bajaj Finance Limited expected to maintain FY2012 performance and grow faster than bank credit in FY2013, balancing growth with risk controls and continued investment in technology and people.

• Bajaj Allianz Life Insurance planned to improve persistency, employee productivity, processes and customer service, while increasing the agency channel contribution.

• General insurance faced FY2013 motor third-party risks, including ~₹100 crore of stand-alone commercial-vehicle third-party business and losses on comprehensive commercial-vehicle policies.

• Management warned that FY2013 economic and business headwinds could intensify, with stronger performance required to sustain and advance results.