Bajaj Finserv (BAJAJFINSV) Q4 19/20 earnings summary

Executive summary

• FY2020 consolidated revenue rose 28% to ₹54,351 crore; profit after COVID-related provisions and investment mark-to-market losses increased 5% to ₹3,369 crore.

• Strong lending and insurance growth was offset by higher credit provisions, equity-market losses and pandemic disruption; FY2021 priorities include profitability, cash conservation and tighter collections.

Financial highlights

• Consolidated income was ₹54,351 crore versus ₹42,606 crore; profit before tax was ₹8,302 crore versus ₹8,155 crore, and profit for the year was ₹3,369 crore versus ₹3,219 crore.

• Consolidated EPS was ₹211.7 versus ₹202.3; standalone PAT rose to ₹666.86 crore from ₹307.17 crore, with standalone EPS of ₹41.9 versus ₹19.3.

• Standalone income reached ₹815.16 crore from ₹448.56 crore, including ₹668.14 crore interest income and ₹39.23 crore windpower income.

• Adjusted for ₹1,292 crore of one-time FY2020 Q4 loan provisions, Bajaj Finance’s FY2020 loan losses and provisions would have been ₹2,637 crore.

Outlook and guidance

• FY2021 was expected to be exceptionally challenging; economists cited projected Indian GDP contraction of ~5%, with a weak Q1 and gradual recovery in H2.

• Priorities include profitability over growth, cash conservation, longer-term borrowing, stronger collections, lower overheads and preserving capital adequacy.

• General insurance outlook was mixed: subdued vehicle and asset sales may constrain motor, travel and credit insurance, while health-insurance demand was expected to strengthen.

• Life insurance plans focused on renewal premiums, cost control, digital customer outreach and operational digitisation amid uncertain new-business demand.