Max Financial Services announces Q4, FY22 results

Max Financial Services Limited (MFSL) today announced its financial results for the quarter (Q4) and the financial year FY22. During Q4FY22, the Company reported consolidated revenues of Rs 8,962 crore, 8% lower than previous year, due to lower investment income. Excluding investment income, the consolidated revenues grew 12%. The consolidated Profit after Tax stood at Rs 144 crore, up a staggering 106% from Rs 70 crore in the year-ago period.

During FY22, the Company reported consolidated revenues of Rs. 31,188 crore which was marginally lower than the previous year due to lower investment income. Excluding investment income, the consolidated revenues grew 17%.

The Company recorded a Consolidated Profit after Tax of Rs. 318 crore, 43% lower compared to the previous year. The decline in the Profit after Tax was primarily due to COVID-19-related provision in the current year and one-off items in previous year.

During the financial year, Max Life - MFSL's sole operating subsidiary - achieved highest ever New Business Margin (NBM) of 27.4% in FY22, an increase of 215 bps and the Value of New Business (VNB) was Rs 1,528 crore (post overrun), an annual growth of 22%. The 22% growth in VNB has been achieved on a high base of 39% VNB growth achieved in FY21. On a 2-year CAGR, the VNB growth stood at an industry best of 31%.

Max Life reported an Embedded Value of Rs 14,174 crore, while the Operating Return on EV (RoEV) over FY22 stood at 20.1%**; including non-operating variances and adding the dividends, the RoEV came to 19.8%.

Max Life total new business premium (individual and group) increased 16% to Rs 7,905 crore. In addition, the renewal premium income (including group) grew 19% to Rs 14,509 crore, taking the gross premium to Rs 22,414 crore, an increase of 18% over the previous financial year. The operating expenses (policyholders) to net premium ratio improved from 14.2% in FY21 to 13.5% in FY22 due to effective cost management efforts and higher business growth.

Max Life's assets under management (AUM) were Rs 1,07,510 crore as on March 31, 2022 - a rise of 19% over the previous year.

This strong performance was despite a 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. Max Life maintained its 4th rank in the private industry.

Max Life conducted the 'India Retirement Index Study' (IRIS) in partnership with Karvy Insights. India's Retirement Index stood at 44 in terms of health and financial preparedness and is a key retirement concern amongst Indians. It also released its ESG Report 2021 during the quarter under review, which focuses on the company's transition to become one of the most sustainable workplaces that provide a conducive environment for the growth of its employees.

Lastly, following the appointment of Max Life as a 'Sponsor' of the Pension Fund, the Pension Fund Management (PFM) entity was incorporated and registered with the Ministry of Corporate Affairs.

Mr. Mohit Talwar, Managing Director, Max Financial Services, said, "Our strong Q4 numbers are a result of our consistent efforts in driving profitable growth across our channels by optimizing for product mix."

Shares of Max Financial Services Limited was last trading in BSE at Rs. 701.05 as compared to the previous close of Rs. 707.70. The total number of shares traded during the day was 20981 in over 1057 trades.

The stock hit an intraday high of Rs. 717.55 and intraday low of 699.00. The net turnover during the day was Rs. 14871413.00.

Source : Equity Bulls

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MaxFinancialServices INE180A01020 Q4FY22 FY2022 ResultUpdate