Bajaj Finserv (BAJAJFINSV) Q4 22/23 earnings summary

Executive summary

• FY2023 consolidated total income rose 20% to ₹82,072 crore; profit before mark-to-market gains increased 48% to ₹6,745 crore, and reported PAT rose 41% to ₹6,417 crore.

• Bajaj Finance drove growth with 64% PAT growth and AUM up 25%; life insurance delivered record GWP, while general insurance faced higher motor and health claim costs.

• Strategy centers on an integrated financial-services ecosystem, digital platforms and lifecycle offerings; a new mutual fund business was expected to launch its first products in Q2 FY2024.

Financial highlights

• Consolidated revenue from operations was ₹82,071 crore versus ₹68,406 crore; total expenses rose to ₹65,262 crore from ₹57,168 crore, and PBT was ₹16,811 crore versus ₹11,271 crore.

• Reported consolidated PAT was ₹6,417 crore versus ₹4,557 crore; excluding mark-to-market gains/losses, profit before MTM was ₹6,745 crore versus ₹4,555 crore.

• Basic and diluted EPS were ₹40.3 and ₹40.0, respectively, versus ₹28.6 for both in FY2022; prior-year share data was adjusted for the split and bonus issue.

• Standalone total income rose to ₹1,148 crore from ₹729 crore; PAT increased to ₹733 crore from ₹424 crore, including ₹949 crore of dividends from subsidiaries versus ₹511 crore.

Outlook and guidance

• India GDP growth was forecast above 6% for FY2024; expectations depended on normal monsoons, while global banking turmoil and food-price pressures remained potential headwinds.

• First mutual fund product suite was expected to launch in Q2 FY2024, extending investment and wealth-management offerings.

• The ₹10 lakh crore FY2024 central-government capex budget, up 33% YoY, was expected to support growth; the RBI left policy rates unchanged in April 2023 but described the pause as meeting-specific.