Bajaj Holdings & Investment (500490) Q4 20/21 earnings summary

Executive summary

• Consolidated profit reached a record ₹3,649.83 crore in FY2021, up from ₹2,992.00 crore, supported by recovery across associate and group businesses.

• Standalone profit fell to ₹198.59 crore from ₹1,826.87 crore, primarily because FY2020 included ₹1,836.20 crore of dividends from associates and subsidiaries; none were received in FY2021.

• Investment portfolio market value rose to ₹109,209 crore from ₹57,062 crore; market-value assets under management exceeded ₹100,000 crore at year-end.

Financial highlights

• Standalone total income was ₹431.14 crore vs ₹2,205.86 crore; expenses were ₹121.23 crore vs ₹157.77 crore and PBT was ₹309.91 crore vs ₹2,048.09 crore.

• Standalone net income was ₹198.59 crore vs ₹1,826.87 crore; EPS was ₹17.80 vs ₹164.10.

• Consolidated total income was ₹463.07 crore vs ₹435.69 crore; PBT was ₹3,765.74 crore vs ₹3,313.67 crore and net income was ₹3,649.83 crore vs ₹2,992.00 crore.

• Consolidated EPS was ₹327.90 vs ₹268.80; total comprehensive income attributable to owners was ₹9,332.81 crore vs ₹4,339.89 crore.

• Standalone realized profit on equity sales was ₹316.51 crore vs ₹157.64 crore; FVTOCI equity gains were ₹3,447.29 crore vs a ₹1,248.38 crore loss, recorded in OCI rather than profit.

Outlook and guidance

• Management expected the growth-focused FY2022 budget and RBI’s accommodative stance to support stronger Indian economic growth, subject to implementation and ongoing pandemic developments.

• The second COVID-19 wave, vaccination pace and state-level lockdown decisions were identified as key uncertainties for economic activity and normalization.

• The proposed FY2021 dividend was ₹40 per share, subject to shareholder approval; the payout was ₹445.17 crore and was funded from retained earnings to maintain a stable dividend.