Bajaj Holdings & Investment (500490) Q4 21/22 earnings summary

Executive summary

• FY2022 consolidated profit reached a record ₹4,055.68 crore, up from ₹3,649.83 crore; standalone profit rose sharply, largely on dividend income from associates and subsidiaries.

• Investment portfolio market value was ₹156,649 crore at 31 March 2022, against cost of ₹10,158 crore; market performance and associate results were key value drivers.

Financial highlights

• Standalone total income was ₹1,833.16 crore vs ₹431.14 crore; profit was ₹1,630.52 crore vs ₹198.59 crore; EPS was ₹146.5 vs ₹17.8.

• Standalone dividend income from associates and subsidiaries was ₹1,402.01 crore, versus nil in FY2021; the section 80M deduction also reduced tax expense.

• Consolidated total income was ₹486.51 crore vs ₹463.07 crore; associate profit share was ₹3,893.67 crore vs ₹3,445.59 crore; EPS was ₹364.4 vs ₹327.9.

• Standalone OCI fair-value gains on equities were ₹1,412.18 crore vs ₹3,447.29 crore; realised equity-sale profit was ₹147.45 crore vs ₹316.51 crore.

• Consolidated results included BAL’s ₹315.28 crore prior-year incentive income as an exceptional item and a ₹501.23 crore exceptional gain from the KTM AG/Pierer Bajaj AG restructuring.

Outlook and guidance

• FY2023 outlook was supported by a potential rebound in consumption, healthy bank balance sheets and stronger exports; inflation, commodity costs and geopolitical uncertainty remained near-term concerns.

• Supply-side inflation pressures were expected to ease over time, while the fixed-income outlook remained subject to uncertainty in global variables.