Max Financial Services (MFSL) rose 3.44% to Rs 725.20 after the company reported an 88.8% increase in consolidated net profit to Rs 117.68 crore despite an 8.2% decline in total revenue at Rs 8962.31 crore in Q4 FY22 compared to Q4 FY21.
Total expenditure during the quarter decreased by 9.1% year-on-year to Rs 8,809.34 crore.
Profit before tax was Rs 152.97 crore in Q4 FY22, which is 127.8% higher from Rs 67.15 crore in Q4 FY21.
The company recorded a 40.5% drop in consolidated net profit to Rs 253.37 crore on a 0.3% drop in total revenue to Rs 31,187.58 crore in FY22 from in fiscal 21. Excluding investment income, total consolidated income increased by 17%.
The decline in after-tax profit was primarily due to provisions related to COVID-19 in the current year and one-time items from the prior year, Max Financial said.
During the year, Max Life – MFSL’s sole operating subsidiary – achieved a new business margin (NBM) of 27.4% in FY22, an increase of 215 basis points and the value of new business (NBV) was Rs 1,528 crore (after overshoot), an annual growth of 22%. The 22% GNB growth was achieved on a high base of 39% GNB growth achieved in FY21.
Max Life reported an embedded value (EV) of Rs 14,174 crore. Operating return on EV (RoEV) in FY22 was 19.2%, increasing to 20.1% after excluding the one-time impact of COVID-19. Including non-operating variances, the total RoEV is 19.8%.
Max Life’s total new business premium (individual and group) increased by 16% to Rs 7,905 crore. Additionally, renewal premium income (including band) increased by 19% to Rs 14,509 crore, bringing the gross premium to Rs 22,414 crore, an increase of 18% from the prior year. .
Assets under management (AUM) of Max Life stood at Rs 1,07,510 crore as of March 31, 2022, an increase of 19% from the previous year.
Mohit Talwar, Managing Director of Max Financial Services, said, “Our strong fourth quarter figures are the result of our continued efforts to drive profitable growth across all of our channels by optimizing the product mix.
Max Financial Services (MFSL) is part of India’s leading business conglomerate – the Max Group. Focused on life insurance, MSFL owns and actively manages an 81.83% majority stake in Max Life Insurance, India’s largest non-bank private life insurance company. Max Life offers complete protection and long-term savings solutions, thanks to its multi-channel distribution including agencies and third-party distributors.
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