Financial results – Q4 and FY18
Highest ever annual standalone and consolidated profit !
A meeting of the Board of Directors of Bajaj Holdings & Investment Limited (BHIL) was held today to consider and approve the results for Q4 and FY18.
The Board of Directors recommended a dividend of ` 40 per share – 400% (previous year – 325%). The total amount of dividend and tax thereon amounts to ` 537 crore (previous year ` 435 crore).
Q4 FY18 v/s Q4 FY17
Standalone profit after tax – ` 202 crore v/s ` 130 crore ( 55%
Consolidated profit after tax – ` 801 crore v/s ` 563 crore ( 42%
FY18 v/s FY17
Standalone profit after tax – ` 1,314 crore v/s ` 538 crore ( 144%
Consolidated profit after tax – ` 3,186 crore v/s ` 2,473 crore ( 29%
BHIL, being an investment company, its results largely depend on the performance of stock and money markets.
Sharply rising equity markets provided an opportunity to realise gains on listed equity investments. BHIL was also able to realise gains on its unlisted equity investment in NSE. Profit on sale of equity investments (net) for FY18 was ` 493 crore v/s ` 362 crore in FY17.
BHIL’s dividend income for FY18 was ` 571 crore v/s ` 97 crore in FY17. Previous year (FY17) dividends were significantly lower as many companies declared interim dividends in Q4 FY16.
Consequently, BHIL recorded its highest annual standalone profit of ` 1,314 crore in FY18 v/s ` 538 crore in FY17 – an increase of 144%.
Details of standalone financials are given below:
` In Crore Q4 FY18 Q4 FY17 FY18 FY17 Dividend from BAL, BFS, MSL and BAHL – – 531 46 Dividend from other companies 2 8 40 51 Profit on sale of equity investments (net) 101 44 493 362 Profit on sale of fixed income securities (net) 16 72 62 169 Interest on investments and other income 102 56 348 260 Total revenue 221 180 1,474 888 Total expenses 19 20 70 216 Profit before tax 202 160 1,404 672 Profit after tax 202 130 1,314 538
Bajaj Holdings & Investment Limited holds strategic stakes of 31.54% in Bajaj Auto Ltd. (BAL), 39.29% in Bajaj Finserv Ltd. (BFS) and 24% in Maharashtra Scooters Ltd. (MSL), the results of which it consolidates.
Bajaj Auto consolidates its 48% stake in KTM AG, Austria. As per accounting standards, BHIL considers BAL’s results under erstwhile Indian GAAP (not Ind AS) for the purpose of consolidation.
Bajaj Finserv’s consolidated results include its 55% stake in lending arm Bajaj Finance Limited (BFL) and its 74% stake in two insurance subsidiaries – Bajaj Allianz General Insurance Company Limited (BAGIC) and Bajaj Allianz Life Insurance Company Limited (BALIC).
Due to a strong performance of all components of BHIL on consolidated basis, be it BHIL (standalone), BAL (consolidated) or BFS (consolidated), BHIL recorded its highest annual consolidated profit of ` 3,186 crore in FY18 v/s ` 2,473 crore in FY17 – an increase of 29%.
BAL’s (consolidated) profit after tax, as considered for consolidation increased by 48% to ` 1,045 crore in Q4 FY18 v/s ` 706 crore in Q4 FY17.
BFS (consolidated) profit after tax increased by 28% to ` 685 crore in Q4 FY18 v/s ` 535 crore in Q4 FY17.
Consequently, BHIL’s consolidated profit after tax increased by 42% to ` 801 crore in Q4 FY18 v/s ` 563 crore in Q4 FY17.
BAL’s (consolidated) profit after tax, as considered for consolidation increased by 20% to ` 4,154 crore in FY18 v/s ` 3,458 crore in FY17.
BFS (consolidated) recorded its highest ever annual profit, fourth time in a row of ` 2,741 crore in FY18 as against ` 2,262 crore in FY17 – an increase of 21%, driven largely by extraordinary performance of BFL and BAGIC.
Accordingly, BHIL’s consolidated profit after tax for FY18 increased by 29% to ` 3,186 crore v/s ` 2,473 crore in FY17.
Summary of consolidated financials of BHIL is as under:
` In Crore Q4 FY18 Q4 FY17 FY18 FY17 Total revenue 223 181 965 850 Share of profit after tax of associates 599 433 2,388 1,978 Profit after tax 801 563 3,186 2,473
The cost and market value of the investment portfolio is as under:
` In Crore 31-Mar-18 31-Mar-17 Cost Market value Cost Market value Strategic equity investments in group companies 1,232 58,962 1,232 52,351 Equity shares – others 1,322 2,221 1,390 2,501 Fixed income securities 5,072 5,032 4,272 4,304 Investment property 191 191 196 196 Total 7,817 66,406 7,090 59,352
As against a book value of ` 738 per share, NAV of the above investments was ` 5,967 per share as on 31 March 2018.