Bajaj Finserv: Q1FY15 Result Analysis
DSIJ Intelligence / 16 Jul 2014
Bajaj Finserv announced its financial results for the quarter ended June 2014. The company posted a consolidated bottomline of Rs 464.32 crore as against Rs 401.58 crore in June 2013.
Bajaj Finserv announced its June 2014 quarter results where the company posted a consolidated bottomline of Rs 464.32 crore as against Rs 401.58 crore in June 2013. On the total income front, its total income from operations for June 2014 stood at Rs 1629.07 crore as against Rs 1269.81 crore in June 2013.
If we dig further into the details, the life insurance segment witnessed a marginal decline and contributed Rs 795.89 crore in June 2014 as against Rs 884.30 crore posted in June 2013. It was the strong performance from General Insurance segment which helped the company put in a better performance. General Insurance contributed Rs 1177.49 crore as against Rs 1097.87 crore in the corresponding quarter of the previous year. Margins were better in Life Insurance Segment.
If we take a look at the holding structure of company, it has five different companies as subsidiaries. Bajaj Allianz Life Insurance Company (74%), Bajaj Allianz General Insurance Company (74%) and Bajaj Finance (61.50%). The other two Bajaj Financial Solutions and Bajaj Financial Holdings are 100% subsidiaries. It also has a joint venture having 50% holding in Bajaj Allianz Financial Distributors. Let’s have a look at the performance of above companies.
For the quarter ended June 2014 Bajaj Finance posted a total income of Rs 1246 crore as against Rs 932 crore in June 2013, resulting in an appreciation of 34%. PAT for the June 2014 quarter stood at Rs 211 crore as against Rs 176 crore in June 2013. AUM for the quarter increased to Rs 26943 crore from Rs 24061 crore in March 2014. The assest quality of the company was good with Net NPAs standing at just 0.27%. Capital Adequacy ratio of the company has been strong at 18%.
As for Bajaj Allianz General Insurance, while the topline increased by 7% to Rs 1177 crore on YoY basis, its bottomline increased by 30% to Rs 130 crore in June 2014. Even the Life insurance Segment posted strong financial performance.
The financial performance of the company has been good for the quarter and considering the same we recommend the readers to buy the scrip at current levels. On valuation front, the scrip is trading at 1.60x of its book value. We recommend the readers to buy the scrip at current levels with a perspective of 12-18 months.
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