- 29 Jul 2022
- ICICIdirect Research
Bajaj Finserv posted Q1FY23 numbers
BAJAJFINSV - 1783 Change: 27.40 (1.56 %)News: Bajaj Finserv reported strong set of number. Its consolidated topline growth came at 14% YoY to Rs 15889 crore, led by healthy revival in lending business and healthy performance in life insurance premium. Lower provisioning in lending business leading to consolidated earnings at Rs 1309 crore; up 57.2% YoY. Bajaj Finance’s strong performance led by AUM growth and sharp GNPA improvement QoQ, earnings growth momentum improved with PAT growth of 159% YoY and 7%QoQ to Rs 2596 crore. GNPA & NNPA are below pre-covid levels. Gross written premium in general insurance increased 25% YoY to Rs 31190 crore. Led by higher claims, combined ratio came at 104.6% in Q1FY23, leading to underwriting loss at Rs 61 crore. Investment income remained healthy at Rs 612 crore (up 30% YoY), leading to PAT of Rs 411 crore vs Rs 362 crore in Q1FY22 (up 14% YoY). Life insurance gross written premium grew 74% YoY to Rs 4369 crore. Renewal premium witnessed an uptick reporting 19% YoY growth to Rs 1452 crore. Thus, PAT reported a growth of 48% YoY at Rs 124 crore vs Rs 84 crore in Q1FY22.
Views: Strong uptick in lending business along with premium accretion in insurance businesses. Digital transformation with healthy pace of customer additions and wallets to aid earnings. New products initiatives and change in product mix to result in premium growth for insurance businesses.
Impact: Positive.