Strong Growth in Life Insurance Operations, Profit at ₹69.81 Crore for Q3 FY25
February 4, 2025 | Mumbai, India – Max Financial Services Limited (BSE: 500271 | NSE: MFSL) released its financial results for the third quarter (Q3) and nine months (9M) ended December 31, 2024, reporting robust performance driven by life insurance operations.Key Financial Highlights (₹ in Crores)
| Particulars | Q3 FY25 (Unaudited) | Q2 FY25 (Unaudited) | Q3 FY24 (Unaudited) | 9M FY25 (Unaudited) | 9M FY24 (Unaudited) | FY24 (Audited) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 8,923.21 | 13,372.39 | 12,355.67 | 34,094.44 | 31,689.41 | 46,576.22 |
| Total Income | 8,927.35 | 13,376.12 | 12,359.19 | 34,105.50 | 31,719.79 | 46,618.31 |
| Total Expenses | 8,846.61 | 13,214.02 | 12,161.22 | 33,680.91 | 31,245.58 | 46,203.49 |
| Profit Before Tax (PBT) | 80.74 | 162.10 | 197.97 | 424.59 | 474.21 | 414.02 |
| Profit After Tax (PAT) | 69.81 | 139.34 | 171.21 | 365.09 | 442.66 | 392.58 |
| Earnings Per Share (EPS) - Basic & Diluted (₹) | 1.62 | 3.26 | 4.30 | 8.57 | 11.13 | 9.85 |
Segment-Wise Performance
- Life Insurance Business contributed ₹8,921.37 crore in revenue, slightly lower than the ₹13,370.55 crorereported in Q2 FY25 but higher than ₹12,352.93 crore in Q3 FY24.
- Business Investments reported revenue of ₹6.47 crore, down from ₹7.80 crore in Q2 FY25 and ₹7.36 crore in Q3 FY24.
Policyholders' Income and Expenses from Life Insurance Operations
- Net Premium Income for Q3 FY25 stood at ₹8,058.75 crore, reflecting a YoY growth from ₹7,147.42 crore in Q3 FY24.
- Interest Income increased to ₹2,029.42 crore from ₹1,724.71 crore YoY.
- Net gain on fair value changes of policyholders’ investments recorded a negative ₹(2,483.07) crore due to market fluctuations, compared to ₹4,501.03 crore in Q3 FY24.
- Policyholders’ expenses stood at ₹8,801.63 crore, in line with revenue growth.
Key Corporate Developments
- Strategic Stake Sale in Axis Max Life Insurance (AMLI)
- The company’s stake in AMLI reduced to 80.98% post additional capital infusion by Axis Bank, which now holds 19.02% of AMLI.
- Axis Bank has been granted an option to acquire an additional 0.98% stake, extending the purchase timeline by one year to October 5, 2024.
- Regulatory Developments
- The company and certain key personnel have received a Show Cause Notice (SCN) from SEBI related to alleged non-compliance in transactions concerning AMLI shares.
- No financial impact has been recognized as the company is engaging with SEBI for an appropriate response.
Management Commentary
Analjit Singh, Chairman of Max Financial Services, stated:"We continue to see strong traction in our life insurance business, supported by sustained premium growth and strategic partnerships. The capital infusion by Axis Bank further strengthens our subsidiary, positioning us for future expansion. Despite market fluctuations affecting investment income, we remain confident in our long-term growth trajectory."
Strategic Outlook
- Expansion in the Insurance Segment: Focus on strengthening AMLI’s position in the Indian life insurance market with digital initiatives and product innovations.
- Regulatory Compliance: The company is actively engaging with SEBI to address pending compliance matters.
- Financial Stability: With no outstanding defaults or debt securities, the company maintains a strong financial position.