Bajaj Finserv (BAJAJFINSV) Q4 15/16 earnings summary

Executive summary

• FY2016 consolidated profit for the year rose to ₹1,863.27 crore from ₹1,689.79 crore; standalone profit increased to ₹163.13 crore from ₹125.93 crore.

• Bajaj Finance led growth, while general insurance absorbed Tamil Nadu flood losses and life insurance grew more slowly than the industry.

• RBI recognized the holding entity as a Core Investment Company (CIC) on 23 October 2015, ending its NBFC registration requirement.

Financial highlights

• Consolidated total revenue was ₹9,446.74 crore vs ₹7,590.38 crore; profit before tax ₹3,804.05 crore vs ₹3,246.15 crore; profit after tax ₹2,774.54 crore vs ₹2,404.21 crore.

• Consolidated profit for the year, after ₹911.29 crore minority interest, was ₹1,863.27 crore vs ₹1,689.79 crore; EPS was ₹117.1 vs ₹106.2.

• Standalone revenue was ₹251.45 crore vs ₹211.66 crore; PBT ₹194.81 crore vs ₹158.10 crore; PAT ₹163.13 crore vs ₹125.93 crore; EPS ₹10.3 vs ₹7.9.

Outlook and guidance

• Management characterized FY2016 as challenging despite real GDP growth of 7.6%; credit growth, corporate investment and savings remained muted.

• BALIC faced growth challenges; management said it needed to improve in FY2017.

• Forward-looking objectives and projections may differ materially from actual results.