Result Update Q4FY18 published on 17th May 2018
Bajaj Finserv Ltd is an Indian financial services company and is a part of Bajaj holdings & investments limited focused on lending, asset management, wealth management and insurance.
First cut Analysis: (Q4FY2018)
1. Revenue Growth:Rs.3681.37Cr
2. PAT: Rs.1113.83Cr
3. Net profit: Rs.685.46Cr
4. ROCE (avg): 16.85%
5. ROE (avg) : 13.14%
6. Dividend Yield: 0.03%
Expectation and Growth for Future:
1.The company has had a sustained health growth performance
2.Strong and profitable growth is seen in general insurance
3.Traction is seen in the individual business premium and therefore company remains to be on the forefront in the top line business.
1.The Net sales of the company increased by a total of 2.30% q-o-q to Rs.3681.37Cr in Q4FY18 and by 34.40% y-o-y to Rs.13561.6Cr for FY18 which was due to the growth in lending and general insurance profitability, partly offset due to the lower growth in life insurance.
2.The operating profit of the company decreased by 3.30% q-o-q to Rs.2860.89Cr in Q4FY18 and increased by 25.84% y-o-y to Rs.10964.5Cr for FY18 margins sustained ~10% due to higher IRR
3. The Interest of the company increased drastically by 4.16% q-o-q to Rs.1216.38Cr in Q4FY18 and grew by 22.47% y-o-y to Rs.4551.43Cr for FY18
4.The Net profit of the company decreased by 8.43% q-o-q to Rs.685.46Cr in Q4FY18 and grew by 21.20% y-o-y to Rs.2741.44Cr for FY18, going ahead estimated consolidated revenues will grow at 22% CAGR over FY18-20E to Rs.45394Cr owing to increasing profitability in finance segment and the steady performance in the general insurance, the bottom line is seen growing at faster rate at ~28.6% CAGR over FY18-20E to Rs.4811Cr.
5.Strong traction in the finance and life insurance boosted the top line. The life insurance business is improving with continued traction in the individual business. General insurance made underwriting profit due to the lower claims made in the quarter.
6. Price to book ratio to get better by FY20E at 2.9 from the current 4.2