Bajaj Finserv (BAJAJFINSV) Q4 16/17 earnings summary

Executive summary

• FY2017 consolidated revenue was ₹24,522.06 crore, PBT ₹4,924.53 crore and profit for the year ₹2,261.92 crore; EPS was ₹142.1.

• Lending and insurance drove performance; retail financing segment result was ₹2,877.09 crore and insurance segment result ₹2,019.61 crore.

• Standalone profit fell to ₹70.02 crore from ₹163.13 crore, reflecting lower dividend income from ₹111.08 crore to ₹21.60 crore.

Financial highlights

• Consolidated revenue rose to ₹24,522.06 crore from ₹20,533.62 crore; PBT reached ₹4,924.53 crore versus ₹3,804.05 crore, and profit for the year was ₹2,261.92 crore versus ₹1,863.27 crore.

• Consolidated EPS increased to ₹142.1 from ₹117.1; reported profit after tax was ₹3,449.71 crore before minority interest of ₹1,187.79 crore.

• Standalone revenue was ₹165.00 crore versus ₹251.45 crore; standalone PBT was ₹104.00 crore versus ₹194.81 crore and EPS ₹4.4 versus ₹10.3.

• Bajaj Finance FY2017 total income rose 36% to ₹10,003 crore, PAT 44% to ₹1,837 crore and basic EPS 40% to ₹34.01.

Outlook and guidance

• FY2018 real GDP growth of 7.4%-7.5% was viewed as a creditable outcome; the outlook depended on investment appetite and monsoons, with an initial forecast of a normal monsoon.

• GST rollout was expected to support growth, though teething issues were anticipated in the first two quarters; broader benefits were expected from FY2019.

• Demonetisation effects were expected to taper off by the beginning of FY2018; stronger performance from the lending and insurance businesses was sought in FY2018.