Bajaj Finserv unveiled its financial results for the second quarter of FY24 on Friday, showcasing a consolidated net profit of Rs 1,929 crore. This figure signifies a remarkable 24 percent upswing when compared to the previous year's earnings, which amounted to Rs 1,557 crore.
The organization's revenue from operations also exhibited an impressive growth trajectory, surging by a significant 25 percent to reach Rs 26,023 crore. In contrast, the corresponding period in the previous year reported revenue of Rs 20,803 crore.
In the second quarter, Bajaj Finserv's subsidiaries delivered robust operating performances. Bajaj Finance, in which Bajaj Finserv maintains a substantial 52.4 percent stake, boasted an impressive 28 percent growth in its consolidated net profit, resulting in earnings of Rs 3,551 crore.
This outstanding performance can be attributed to the robust expansion of assets under management (AUM), an increase in net interest income, and enhanced asset performance. As of September 30, 2023, Bajaj Finance's AUM reached an impressive Rs 2.9 lakh crore, representing a substantial 33 percent increase, including an AUM of Rs 81,215 crore from BHFL.
Bajaj Allianz General Insurance, the subsidiary specializing in general insurance, reported a remarkable 39 percent growth in net profit during the September 2023 quarter, amounting to Rs 468 crore. The gross written premium for the quarter experienced a substantial 53 percent rise, reaching Rs 7,298 crore.
When excluding tender-driven crop and government health insurance premiums, Bajaj Allianz's gross written premium increased by 21 percent, amounting to Rs 3,747 crore. During this period, the net premium earned reached Rs 2,250 crore, marking a notable increase compared to the previous year's earnings of Rs 1,852 crore.
In the second quarter, the claim ratio exhibited a slight rise to 78 percent, primarily due to a higher mix of crop and government health business and increased claims resulting from heavy rains and cyclone-related incidents. A noteworthy turnaround was observed in the underwriting profit for the quarter, amounting to Rs 37 crore, compared to a loss of Rs 18 crore in the second quarter.
Bajaj Allianz Life Insurance also achieved remarkable results during the second quarter, with a 21 percent growth in profit after tax, reaching Rs 193 crore. The gross written premium for the same period enjoyed a substantial 28 percent boost, amounting to Rs 5,338 crore.
Key metrics for measuring the profitability of the life insurance business, such as New Business Value (NBV), experienced a significant surge of 25 percent to reach Rs 237 crore in the second quarter. Additionally, the solvency ratio remained robust at 466 percent as of September 30, 2023, significantly surpassing the minimum regulatory requirement of 150 percent.
On Friday, shares of Bajaj Finserv were trading at a 1.56 percent higher value of Rs 1,584.30 on the NSE.
