Bajaj Finserv Q2 Results: Net profit rises 8% to ₹1,929 crore; revenue jumps 30% YoY

Bajaj Finserv Q2 Results: Bajaj Finserv on Wednesday reported a consolidated net profit of ₹2,087 crore for the second quarter of FY25, registering a growth of 8% from ₹1,929 crore in the same quarter last fiscal year.

The consolidated revenue of financial services major Bajaj Finserv in Q2FY25 grew 30% to ₹33,704 crore from ₹26,023 crore, year-on-year (YoY).

“Q2 FY25 was a strong quarter for growth across all our major businesses. Risk metrics, however, varied across segments and our companies focused on balancing risk with growth,” Bajaj Finserv said in a regulatory filing.

Bajaj Finserv is Core Investment Company (CIC) and the holding company for the various financial services businesses under the Bajaj group. It holds 51.34% stake in Bajaj Finance.

Here’s a look at the performances of Bajaj Finserv’s material subsidiaries:

Bajaj Finance Q2 Results

Bajaj Finance’s net total income for Q2FY25 increased by 24% to ₹10,946 crore from ₹8,847 crore YoY, while profit after tax rose by 13% to ₹4,000 crore from ₹3,551 crore, YoY.

Bajaj Housing Finance, its mortgage subsidiary, reported a 21% YoY growth in net profit at ₹546 crore.

Assets Under Management (AUM) as on 30 September 2024 were at ₹373,924 crore, up 29% YoY.

Gross Non-Performing Assets (NPA) and Net NPA as on 30 September 2024 stood at 1.06% and 0.46%, respectively, as against 0.91% and 0.31% as on 30 September 2023. Provisioning coverage ratio on stage 3 assets is 57%. Capital adequacy ratio (CRAR) (including Tier-II capital) as on 30 September 2024 stood at 21.69%. The Tier-I capital was at 20.90%

Bajaj Allianz General Insurance Company Q2 Results

The company’s net profit rose marginally by 6% to ₹494 crore in the quarter ended September 2024 from ₹468 crore in the year-ago quarter.

Gross written premium during the September quarter decreased by 20% YoY to ₹5,871 crore due to spill over of government health business to October. Net earned premium increased by 18% YoY to ₹2,660 crore, Bajaj Finserv said.

Claim ratio increased to 79.7%, while combined ratio stood at 101.4% in Q2FY25 .Underwriting loss stood at ₹48 crore for Q2FY25 versus underwriting profit of ₹37 crore, YoY, primarily due to NATCAT claims of ₹45 crore.

As on 30 September 2024, solvency ratio was 312%, which is well above the minimum regulatory requirement of 150%, said the company.

Bajaj Allianz Life Insurance Company Q2 Results

Net profit fell to ₹148 crore from ₹193 crore in Q2FY24 due to new business strain, higher expense overruns and change in product mix.

Net New Business Value (NBV), which is the key metric used to measure profitability of life insurance business, was ₹245 crore in Q2FY25 as against ₹237 crore in Q2FY24.

New business premium for Q2FY25 increased by 14% YoY to ₹3,202 crore and gross written premium rose 23% to ₹6,544 crore. Solvency ratio stood at a healthy 378% as on 30 September 2024.

Assets Under Management (AUM), represented by total investments, stood at ₹123,178 crore as on 30 September 2024 as compared with ₹98,700 crore as on 30 September 2023, an increase of 25%.

At 1:45 pm, Bajaj Finserv shares were trading 2.19% higher at ₹1,760.95 apiece on the BSE.