Bangalore, August 02, 2023: Aditya Birla Capital Limited (“The Company”) announced its audited financial results for the quarter ended June 30, 2023.
The Consolidated Revenue1 of the Company grew by 39% year-on-year to ` 8,144 Crore. The consolidated profit after tax grew 51% year-on-year to ` 649 Crore. The strong momentum across businesses led to a 43% year-on-year and 6% sequential growth in the overall lending portfolio (NBFC and HFC) to ` 1,00,400 Crore as on June 30, 2023. Gross premium across life and health insurance grew 19% year on year to ` 3,877 Crore. The total AUM (AMC, life insurance and health insurance) grew by 9 % year-on-year to ~ ` 3.9 lakh Crore.
The Company has a pan-India presence with 1,331 branches across all businesses as of June 30, 2023. The Company’s branch expansion is targeted at driving penetration into tier 3 and tier 4 towns and new customer segments.
The Company follows a ‘Digital First Approach’ for product innovation, direct acquisition, seamless onboarding and service delivery. In Q1 FY24, about 76% of customers were onboarded digitally in the AMC business. In life insurance, 79% of renewals were done digitally in Q1 FY24. In Health Insurance business, 86% business is delivered by auto-underwriting.
The Company has seen a strong response to the comprehensive B2B platform for MSMEs, Udyog Plus. There have been more than 48,000 registrations and more than 13,500 loan applications since its launch in March 2023. The Company has recently rolled out Payments Lounge, which is an omni channel collections platform for merchants. It can be integrated with ecommerce platforms and digital platforms of merchants enabling them to make collections seamlessly.
The performance highlights of the key businesses of Aditya Birla Capital Limited are:
NBFC business:
- Disbursements grew by 65% year-on-year to ` 13,237 Crore
- Loan portfolio grew by 49% year-on-year and 7% sequentially to ` 85,891 Crore
- Loans to retail, SME and HNI customers constitute 67% of the total loan portfolio
- Net interest margin (NIM) expanded by 43 basis points year-on-year and 10 basis points sequentially to 6.98%
- Profit before tax grew by 51% year-on-year and 14% sequentially to ` 691 Crore
- Return on assets and return on equity remained healthy at 2.54% and 17.89% respectively
- Asset quality continued to improve with gross stage 2 and 3 assets declining by 345 basis points year-on-year and 37 basis points sequentially to 5.46%
Housing Finance business:
- Disbursements grew by 83% year-on-year to ` 1,620 Crore in Q1 FY24
- Loan book grew by 19% year-on-year and 5% sequentially to ` 14,509 Crore
- NIM expanded by 34 basis points year-on-year and 8 basis points sequentially to 5.11%
- Profit before tax grew by 18% year-on-year to ` 84 Crore
- Return on assets and return on equity remained healthy at 1.90% and 13.23% respectively
- Asset quality continued to improve with gross stage 2 and 3 assets declining by 401 basis points year-on-year and 21 basis points sequentially to 4.78%
Asset Management:
- Mutual fund quarterly average assets under management (QAAUM) increased by 5% year-on-year and 8% sequentially to ` 2,96,937 Crore
- The proportion of equity in overall mutual fund QAAUM was 39.9%
- Individual monthly average assets under management grew by 14% year-on-year, to ` 1,50,085 Crore
- Monthly systematic investment plan (SIP) inflows grew by 10% year-on-year to ` 987 Crore in June 2023
- In line with the focus on growing passive and alternate assets business, passive AUM grew more than two times year-on-year to ` 28,675 Crore as of June 30, 2023
- Profit before tax grew by 70% year-on-year to ` 240 crore
Life Insurance business:
- Individual First Year Premium (FYP) grew by 32% year-on-year to ` 540 Crore
- Group new business premium grew by 20% year-on-year to ` 1,062 Crore
- Renewal premium grew 12% year-on-year to ` 1,441 Crore
- 13th month persistency continued to improve and was 88% in June 2023 compared to 85% in June 2022
- Net VNB margin expanded by ~ 935 bps year-on-year to 11.8%
Health Insurance business:
- Gross written premium grew by 22% year-on-year to ` 772 Crore
- Market share among standalone health insurers was 11.6%
- Combined ratio was 117% in Q1 FY24
- The net loss reduced to ` 62 Crore in Q1 FY24 from ` 71 Crore in Q1 FY23
Other businesses:
- Profit before tax for other financial services businesses (general insurance broking, stock and securities broking, and stressed assets platform) of the Company grew by 20% year-on-year to ` 90 Crore
