Bajaj Holdings & Investment (500490) Q4 11/12 earnings summary

Executive summary

• Standalone performance weakened in FY12 amid depressed equity markets; associate results were generally strong. Standalone profit was ₹567.46 crore vs ₹1,000.09 crore, while consolidated profit was ₹1,679.17 crore vs ₹2,322.76 crore.

• Consolidated profit included ₹1,480.70 crore of income from associates after tax, compared with ₹1,504.23 crore in FY11.

Financial highlights

• Standalone total revenue was ₹650.37 crore vs ₹1,076.45 crore; profit before tax was ₹642.81 crore vs ₹1,069.12 crore.

• Dividend income rose to ₹411.30 crore from ₹225.01 crore, mainly due to a higher dividend from Bajaj Auto; profit on sale of investments fell to ₹85.72 crore from ₹706.52 crore.

• Consolidated total revenue was ₹301.03 crore vs ₹900.41 crore; profit before tax was ₹274.93 crore vs ₹888.27 crore, including a ₹14.01 crore exceptional item in FY12.

Outlook and guidance

• Investment strategy targets long-term capital appreciation and current income through equity-related and fixed-income holdings, balancing yield, safety and liquidity.

• Investment activity is guided by prudential limits and board-set asset-allocation and benchmarking parameters; an investment committee reviews performance and significant investments.