Max Financial Services Ltd posts consolidated Q1FY22 net profit of Rs. 21.19 crores

Max Financial Services Limited has reported financial results for the period ended June 30, 2021.

Financial Results (Q1 FY 2021-22) - QoQ Comparison

The company has reported total income of Rs.5943.14 crores during the period ended June 30, 2021 as compared to Rs.9760.31 crores during the period ended March 31, 2021.

The company has posted net profit / (loss) of Rs.21.19 crores for the period ended June 30, 2021 as against net profit / (loss) of Rs.62.34 crores for the period ended March 31, 2021.

The company has reported EPS of Rs.0.61 for the period ended June 30, 2021 as compared to Rs.2.13 for the period ended March 31, 2021.

Financials	Q1 FY2021-22	Q4 FY20-21	% Change
Total Income	₹ 5943.14 crs	₹ 9760.31 crs	-39.11%
Net Profit	₹ 21.19 crs	₹ 62.34 crs	-66.01%
EPS	₹ 0.61	₹ 2.13	-71.36%

Financial Results (Q1 FY 2021-22) - YoY Comparison

The company has reported total income of Rs.5943.14 crores during the period ended June 30, 2021 as compared to Rs.5517.32 crores during the period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.21.19 crores for the period ended June 30, 2021 as against net profit / (loss) of Rs.130.85 crores for the period ended June 30, 2020.

The company has reported EPS of Rs.0.61 for the period ended June 30, 2021 as compared to Rs.4.85 for the period ended June 30, 2020.

Financials	Q1 FY2021-22	Q1 FY2020-21	% Change
Total Income	₹ 5943.14 crs	₹ 5517.32 crs	7.72%
Net Profit	₹ 21.19 crs	₹ 130.85 crs	-83.81%
EPS	₹ 0.61	₹ 4.85	-87.42%

During the first quarter of FY22, Max Life delivered a strong performance on new business premiums (on APE basis) as it achieved a 32% jump to Rs 875 Cr from Rs 661 Cr in the year-ago period. Further, the renewal premium income (including group) rose 21% to Rs 2,244 Cr, taking the gross written premium to Rs 3,484 Cr, a spurt of 27% over the first quarter of the previous financial year.

This was despite a ~3-4X more severe impact of the second wave of COVID-19 compared with the first wave. Claim experiences were higher than expected across all lines of businesses with significantly higher variance for Protection and Group businesses.

MFSL's sole operating subsidiary, Max Life, registered a 28% increase in total revenues* at Rs 4,626 Cr in the period under review. The Individual Sum Assured of New business reported a 13% decline in Q1FY22 due to de-growth in protection business while the market share improved to 16.1%.

Max Life maintained 4th rank in the private industry and increased its market share by 63 bps. In terms of industry performance, Max Life once again posed stellar results as it not only grew at 34% - more than twice the overall industry growth of 16% - but outperformed the industry on a 2-Year CAGR basis, too. Max Life also went past other private players who grew at 26% in the quarter under review.

The New Business Margin (NBM) for Q1FY22 was 19.7% (at actual costs), an increase of 260 bps from 17.1% in the year-ago period guided by a change in business mix. Further, this aided a 53%-growth in the Value of New Business (VNB) was Rs 172 Cr. The higher growth in VNB was due to higher sales and change in business mix.

Max Life reported an Embedded Value (EV) of Rs. 12,290 Cr - an uptick of 15% from Rs 10,670 Cr in the year-ago period driven by growth in value of new business and quality of inforce business. The Operating Return on EV (RoEV) in Q1FY22 stood at 13.5%.

In Q1FY22, Max Life's assets under management (AUM) was Rs 93,697 Cr - a rise of 28% over the year-ago period. Max Life's Claim paid ratio at 99.35% at the end of the first quarter under review is among the best in the industry.

The organization gained 6 positions and was ranked 18th in the 'Best Companies to Work in India' for 2021. It was the only Indian life insurer to be recognized in the list of 'Top 100 Great Places to Work in Asia'.

Mr. Mohit Talwar, Managing Director, Max Financial Services, said, "Strong focus towards customer measures has helped deliver superior performance across health parameters and will continue to remain an important priority due to the impact of the second wave of the COVID19."

He added: "Our partnership with Axis Bank after the conclusion of the deal in April and the longstanding bancassurance with YES Bank helped partnership channels grow 52% in the first quarter of FY22."

Shares of Max Financial Services Limited was last trading in BSE at Rs. 1066.5 as compared to the previous close of Rs. 1089.6. The total number of shares traded during the day was 27499 in over 1798 trades.

The stock hit an intraday high of Rs. 1100 and intraday low of 1053.75. The net turnover during the day was Rs. 29628889.

Source : Equity Bulls

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