A meeting of the Board of Directors of Bajaj Finserv Limited was held today to consider and approve the results for FY12. The Board of Directors recommended a dividend of Rs. 1.50 per share – 30% ( previous year – 25% ). The total amount of dividend amounts to Rs. 21.70 crore ( previous year – Rs. 18.09 crore ).
Bajaj Finserv – a holding company, is the financial services arm of the Bajaj group with business interest in “Protection”, “Lending”, and “Financial advisory and Wealth management” through its various associate and subsidiary companies. 2011-12 was a challenging, yet satisfying year. In difficult times for businesses in the financial services sector, each of the underlying companies has performed well, surpassing benchmarks set in the past.
Bajaj Finserv – a holding company, is the financial services arm of the Bajaj group with business interest in “Protection”, “Lending”, and “Financial advisory and Wealth management” through its various associate and subsidiary companies. 2011-12 was a challenging, yet satisfying year. In difficult times for businesses in the financial services sector, each of the underlying companies has performed well, surpassing benchmarks set in the past.
The company’s consolidated gross revenues stood at Rs. 14526 crore while consolidated profit after tax, before exceptional items grew 37% to Rs. 1338 crore.
HIGHLIGHTS for the year
ü Consolidated income from operations – Rs. 3903 crore v/s Rs. 2443 crore; ↑ 60%
ü Consolidated profit before tax and exceptional item – Rs. 2226 crore v/s Rs. 1510 crore; ↑ 47%
ü Consolidated profit after tax, before exceptional item – Rs. 1338 crore v/s Rs. 976 crore; ↑ 37%
ü Life insurance, shareholders profit after tax – Rs. 1311 crore v/s Rs. 1057 crore; ↑ 24%
ü General insurance, profit after tax – Rs. 124 crore v/s Rs. 43 crore; ↑ 188%
ü Bajaj Finance, profit after tax – Rs. 406 crore v/s Rs. 247 crore; ↑ 64%
Summary of consolidated results is given in Annexure A. During FY12, Bajaj Finserv Limited increased its shareholding in Bajaj Finance Ltd (BFL) to 60.98%. A brief write up on the performance of the individual companies is given below:
A. Bajaj Finance Limited
§ Deployments ↑ 67%; Rs. 15797 crore in FY12 as compared to Rs. 9435 crore during the previous year.
§ Assets under management ↑ 73%; at Rs. 13107 crore as on 31st March 2012 as compared to Rs. 7573 crore during the previous year.
§ Total income ↑ 54%; Rs. 2172 crore in FY12 as compared to Rs. 1406 crore during the previous year.
§ Profit after tax ↑ 64%; Rs. 406 crore in FY12 as compared to Rs. 247crore in the previous year – highest ever in its history.
§ Capital adequacy ratio stood at 17.5% as on 31st March 2012, well above the RBI norm of 12%.
§ Infrastructure finance business witnessed a total deployment of Rs. 975 crore in FY12, its first full year.
B. Bajaj Allianz General Insurance Company Limited (BAGIC)
§ Gross written premium ↑15%; Rs. 3338 crore in FY12 as compared to Rs. 2905 crore in the previous year
§ Net earned premium ↑14%; Rs. 2196 crore in FY12 as compared to Rs. 1931 crore in the previous year.
§ Provision for Motor Pool loss was Rs. 264 crore. Under fresh IRDA directive, provision was made at 159% for FY08, 188% for FY09, 200% for FY10 and 213% for FY11 as against 153% in the past.
§ Combined ratio (excluding motor pool losses) improved from 98.6% to 96.1% in FY12 while Claim ratios reduced from 63.4% to 62.3% in FY12.
§ BAGIC has been declaring profits annually from its first full year of operations. Despite the motor pool loss, BAGIC continued to show profits; Profit after tax – Rs. 124 crore in FY12 as against Rs. 43 crore during the previous year.
§ Cash and investments as on 31st March 2012 stood at Rs. 4758 crore.
C. Bajaj Allianz Life Insurance Company Limited (BALIC)
FY12 was the first full year to witness impact of regulatory changes by IRDA, largely the capping of expenses, increase in lock-in period, minimum guaranteed return on pension products and capping of surrender charges. The year posed a challenging environment. BALIC continues to pursue profitable growth with returns to all stake holders.
§ Shareholders’ profit ↑ 24%; Rs. 1311 crore in FY12 as compared to Rs. 1057 crore in the previous year.
§ As on 31st March 2012, accumulated profits were Rs. 2350 crore while Net worth was Rs. 3561 crore.
§ Company strategically chose not to chase new business at high costs. Consequently,
- Gross written premium – Rs. 7484 crore in FY12 as compared to Rs. 9610 crore in the previous year.
- New business premium – Rs. 2718 crore in FY12 as compared to Rs. 3466 crore in the previous year.
- Renewal premium – Rs. 4766 crore in FY12 as compared to Rs. 6144 crore in the previous year.
§ Solvency ratio was a healthy 516% as on 31 March 2012 ( minimum regulatory requirement - 150% ).
§ Total investments as at 31st March 2012 stood at Rs. 39417 crore.
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