Indian five hundred rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Bajaj Finserv March Quarter Profit Rises But Misses Analyst Estimates

Non-banking financial services company Bajaj Finserv Ltd.’s profit missed analyst estimates in the quarter ended March.

Net profit rose 28 percent year-on-year to Rs 685.5 crore, Bajaj Finserv said in its filing to the stock exchanges. That’s short of Bloomberg consensus estimate of Rs 763.1 crore. Net interest income, or the core income of the NBFC, rose 42.5 percent to Rs 2,465 crore.

Revenue increased 25.4 percent to Rs 8,829.35 crore year-on-year. Revenue from the general insurance business increased 13 percent to Rs 187 crore whereas the life insurance business grew 13.63 percent to Rs 171 crore.

Overall premium and other operating income from the insurance business rose more than 18 percent to Rs 5,148 crore. Life insurance premium rose 18.7 percent in the same period to Rs 2,670 crore. New business premium growth remained healthy at 20 percent.

General insurance premium growth continued to remain robust at 22.3 percent year-on-year to Rs 2,764 crore. Market share in this segment has expanded to 7.1 percent, S Sreenivasan, chief financial officer of the company told BloombergQuint in an interaction.

Currently, Bajaj Finserv does not see the need to list its general insurance arm, Bajaj Allianz, as the company is holding significant solvency surplus. Bajaj Allianz is a joint venture between Bajaj Finserv and Allianz SE, a German financial services firm.

There has been no talks with Allianz on increasing their stake in the venture but “Allianz has reiterated its interest to remain in India with Bajaj Finserv,” said Sreenivasan.

The company announced a final dividend of Rs 1.75 per share.

Also read: Bajaj Finance’s March Quarter Profit Rises Most In Over Six Years

Shares of Bajaj Finserv rose as much as 5.4 percent to Rs 5,608.9 during intraday trading today.