NEW DELHI: Ltd on Tuesday reported a multi-fold jump in consolidated net profit at Rs 70 crore for the last quarter of 2020-21.
The company had reported a net profit of Rs 6.7 crore in the same period a year ago.
Max Financial Services Ltd (MFSL) registered consolidated revenues of Rs 9,760 crore in the quarter, up 129 per cent from Rs 4,266 crore in Q4 FY20, it said in a release.
For the full year FY21, its net profit jumped by 105 per cent to Rs 560 crore.
Revenues were up by 72 per cent to Rs 31,288 crore during FY21 due to gains in debt and equity portfolio, it said, adding excluding investment gains, the revenues grew by 17 per cent.
“A steep surge in the profit after tax (net profit) was largely due to higher investment income, reversal of provision for impairment on financial assets, low tax expense and a partial offset by new business strain due to shift in product mix towards non-par business,” it said.
The company’s sole operating subsidiary Max Life Insurance recorded 22 per cent rise in its total new business premium (individual and group) to Rs 6,826 crore in FY21.
In terms of individual APE (adjusted premium equivalent), it grew by 19 per cent to Rs 4,907 crore.
Max Life’s post-tax shareholders’ profit declined by 6 per cent to Rs 523 crore in FY21 as compared to Rs 539 crore in previous year, MFSL said.
The renewal premium income of the insurer rose by 15 per cent to Rs 12,192 crore, taking gross premium to Rs 19,018 crore, up by 18 per cent from a year ago.
“The results are extremely encouraging, considering the challenging environment because of the pandemic. It is one of our best performance in a decade,” MFSL Managing Director Mohit Talwar said.
He said the conclusion of the deal with Axis Bank, in which the lender has become a co-promoter with 12.99 per cent stake in Max Life, will permanently address the uncertainty around Max Life’s distribution and also strengthen is position.
Promoted by Analjit Singh and sponsor family of Max group, MFSL is the financial services arm of the group focussed on life insurance. MFSL owns 81.83 per cent stake in Max Life.
Max Financial Services stock closed 2.91 per cent up at Rs 1014.75 apiece on BSE.