Bajaj Holdings & Investment (500490) Q4 16/17 earnings summary

Executive summary

• FY2017 consolidated profit reached a record ₹2,473.19 crore, up 9% YoY, supported by investment gains and strong associate performance.

• Standalone profit fell to ₹538.18 crore from ₹1,270.51 crore, largely reflecting much lower dividend income after unusually high interim dividends in FY2016.

• The investment portfolio’s market value rose to ₹59,352 crore from ₹39,717 crore; strategic stakes in Bajaj Auto, Bajaj Finserv and Maharashtra Scooters remained central holdings.

Financial highlights

• Standalone revenue was ₹888.43 crore vs ₹1,401.28 crore; PBT ₹672.49 crore vs ₹1,358.56 crore; net profit ₹538.18 crore vs ₹1,270.51 crore.

• Standalone net profit excluding the prior-year dividend timing distortion benefited from net investment-sale gains of ₹531.41 crore vs ₹113.51 crore; dividend income was ₹97.49 crore vs ₹1,017.74 crore.

• Consolidated revenue was ₹850.08 crore vs ₹476.69 crore; PBT ₹630.26 crore vs ₹429.90 crore; share of associate profit ₹1,977.50 crore vs ₹1,923.65 crore; net profit ₹2,473.19 crore vs ₹2,265.24 crore.

• Consolidated revenue is below standalone revenue because intercompany dividends are eliminated in consolidation.

Outlook and guidance

• Equity markets were described as fully priced, with steep valuations; further upside was viewed as dependent on corporate earnings, while bond markets were expected to remain steady.

• NSE listing was expected in H1 FY2018 for the National Stock Exchange of India investment.