Bajaj Finserv (BAJAJFINSV) Q4 20/21 earnings summary

Executive summary

• FY2021 consolidated revenue was ₹60,592 crore and PAT ₹4,470 crore; lending and insurance businesses remained profitable despite COVID-19 disruption.

• Results reflected sharply higher lending impairment costs and unusually high insurance investment mark-to-market gains as equity markets rebounded.

• The second COVID-19 wave and local lockdowns made FY2022 business conditions difficult to predict, especially in Q1 and Q2.

Financial highlights

• Consolidated total income rose to ₹60,591.57 crore from ₹54,351.47 crore; PAT attributable to owners increased to ₹4,470.46 crore from ₹3,369.13 crore.

• Consolidated EPS was ₹280.9 versus ₹211.7; total assets were ₹280,164 crore at 31 March 2021 versus ₹251,384 crore a year earlier.

• Standalone total income fell to ₹392.03 crore from ₹815.16 crore and PAT to ₹178.78 crore from ₹666.86 crore; prior-year investment income included a ₹509 crore dividend from BFL.

• Consolidated operating cash flow was ₹4,547.40 crore, versus cash used of ₹23,369.03 crore in FY2020; year-end cash and cash equivalents were ₹7,811.88 crore.

Outlook and guidance

• FY2022 outcomes remained uncertain amid the second COVID-19 wave, possible local lockdowns and vaccination pace; visibility was particularly limited for Q1 and Q2.

• BFL planned to offer Bajaj Pay to customers in Q1 FY2022 and expand merchant payments; 50 financial-inclusion branches were planned for rural and backward areas in FY2022.

• A recovery could support general insurance through vehicle sales, investment and health-insurance demand, but further COVID-19 disruption could weaken that outlook.