Bajaj Holdings & Investment (500490) Q4 19/20 earnings summary

Executive summary

• FY2020 standalone profit more than doubled to ₹1,826.87 crore, boosted by Q4 interim dividends; consolidated profit eased to ₹2,992.00 crore as underlying associates faced COVID-19 impacts.

• Portfolio market value was ₹57,062 crore versus cost of ₹9,390 crore; standalone equity mark-to-market losses weighed on OCI amid the year-end market correction.

Financial highlights

• Standalone total income rose to ₹2,205.86 crore from ₹998.27 crore; PBT was ₹2,048.09 crore versus ₹909.64 crore, and profit was ₹1,826.87 crore versus ₹788.19 crore.

• Consolidated total income increased to ₹435.69 crore from ₹431.35 crore; share of associate and JV profits was ₹3,057.81 crore versus ₹2,827.33 crore; profit was ₹2,992.00 crore versus ₹3,048.38 crore.

• Standalone interest income declined to ₹231.01 crore from ₹360.98 crore, while dividend income from associates, subsidiaries and JV rose to ₹1,836.20 crore from ₹568.49 crore.

• Standalone comprehensive income was ₹665.86 crore versus ₹1,304.18 crore, including a ₹1,248.38 crore equity mark-to-market loss in OCI, versus a ₹542.22 crore gain in FY2019.

Outlook and guidance

• Long-term investment approach retained; portfolio policy caps non-strategic equity at 60% of surplus funds at cost and requires at least 40% in fixed income securities.

• FY2020 fixed-income realized yield was 7.9%, total return 9.6%, and year-end portfolio yield 7.4% with 3.1-year average maturity; lower yields could support fixed-income values.

• COVID-19 duration and severity remain uncertain; estimates and underlying-business performance may be affected, with no quantified FY2021 earnings guidance stated.