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Revenue
₹23,280 Cr
verified against source
Revenue YoY
47%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Bajaj Finserv reported a strong Q1 FY24 with consolidated PAT up 48% YoY to INR 1,943 crore and total income up 47% to INR 23,280 crore. The general insurance arm (BAGIC) posted a combined ratio of 100.7% (vs 104.6% last year) driven by lower loss ratios in motor and commercial lines, while life insurance (BALIC) grew individual WRP by 15% despite a high base. Bajaj Finance continued its momentum with AUM growth of 32% and record low GNPA of 0.87%. Management highlighted strong distribution expansion in BAGIC and product mix normalization in BALIC post-Q1 tactical shifts. Key risks include intensifying competition in crop insurance due to EoM arbitrage and potential flood claims in Q2 from North Indian rains.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects absolute NBV to grow at a similar pace as historical 24% rolling 12-month growth, with margins stabilizing around 15%.
- Expansion in distribution and geographies is expected to sustain motor growth in the medium term, though market dynamics may affect it.
- After a tactical Q1 with higher ULIP share, PAR mix is expected to revert to December 2022 levels, with corrective actions already taken in July.
Risks flagged
- Private players are aggressively bidding for crop insurance to utilize EoM allowances, potentially compressing margins for BAGIC.
- Heavy rainfall in North India may lead to elevated motor and property claims, though management expects material impact to be assessed only in Q2 call.
- Retail health loss ratios remain elevated due to fraud and claims inflation; management is investing in analytics but improvement may take time.
Key quotes
- We have said that there will be some stress on the bottom line as we start expanding. I think some of the expansion which we've done in the last 12 months has started to show the results.
- The company's goal is to grow its NBV. End of the day, we should grow our margins at least at the same rate as IRNB or better if we can.
- We have transformed the company from where it was, from a negative margin to a fairly healthy double-digit margin. We have some way to go, and over the next few years, you will see this playing a lot more effectively.
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