Bajaj Finserv (BAJAJFINSV) Q4 17/18 earnings summary

Executive summary

• FY2018 consolidated revenue rose to ₹30,599 crore from ₹24,508 crore; profit for the year increased to ₹2,741 crore from ₹2,262 crore.

• Lending and general insurance delivered strong growth and profits; life insurance grew premiums and improved persistency, while reported shareholder PAT fell YoY.

• Standalone PAT rose 101% to ₹141 crore, supported by higher investment income and other income.

Financial highlights

• Consolidated PBT increased 28% to ₹6,310 crore; profit after tax before minority interest was ₹4,340 crore, with ₹1,598 crore attributable to minority interests.

• Standalone revenue rose to ₹252.24 crore from ₹165.00 crore; PBT was ₹166.79 crore vs. ₹104.00 crore and PAT ₹141.34 crore vs. ₹70.02 crore.

• Consolidated revenue included ₹17,111 crore from insurance, ₹13,466 crore from retail finance, ₹72 crore from wind farms and ₹229 crore from investments and others.

Outlook and guidance

• FY2019 GDP growth forecast was 7.4%; expectations for stronger growth were tempered by greater uncertainty and higher interest rates.

• Management expressed confidence in improved performance in the next year, with lending, general insurance and life insurance all contributing to growth.