Aditya Birla Capital announces results for Q4FY19 and full year 2018-19

Quarter 4		Consolidated Results (Rs. crore)	Full Year
2017-18	2018-19		2017-18	2018-19
3,944	5,050	Revenue1	12,841	16,570	29%
357	522	Profit before Tax1 (pre minority interest)	1,438	1,797
169	258	Profit after tax (after minority interest)	693	871	26%

Mumbai: Aditya Birla Capital Limited (ABCL) announced its audited financial results for the quarter and year ended 31st March 2019.

Revenue¹ of the company grew 29 per cent year on year to Rs16,570 crores. The company’s profit after tax (after minority interest) reflected a significant growth of 26 per cent year on year to Rs871 crores, largely driven by profit growth in NBFC, Housing Finance and Asset Management businesses.

The performance highlights of the key underlying businesses of Aditya Birla Capital Ltd. were:

Lending:

• Lending book (NBFC and Housing Finance) grew 23 per cent year on year to Rs63,119 crores vs. Rs51,379 crores in the previous year
• Overall lending book is backed by well-matched asset and liability mix and adequate liquidity pipeline to meet growth requirement
• Raised about Rs11,000 crores of long-term funds during H2 FY 19 despite liquidity headwinds across industry
• Continue to maintain robust quality of book

NBFC business:

• Loan book grew by 20 per cent year on year to Rs51,714 crores
• Net Interest Margin expanded by 37 bps year on year to 4.91 per cent, as a result of SME, Retail and HNI businesses increasing to 50 per cent
• Profit before tax grew 26 per cent year on year to Rs1,328 crores

Housing Finance business

• Loan book grew 40 per cent year on year to Rs11,405 crores while maintaining healthy Net Interest Margins at 3.1 per cent; Affordable lending book grew 4 times to Rs1,500 crores
• Profit before tax grew 3x year on year to Rs107 crores
• Cost to income ratio improved to 61 per cent, as compared to 71 per cent in previous year led by scale and operating efficiencies

Insurance:

Total gross premium of life insurance and health insurance grew by 30 per cent to Rs8,008 crores

Life Insurance business

• Individual First Year Premium (FYP) grew a significant 60 per cent year on year, as against 9 per cent for the industry (excl. LIC)
• Market share (excl. LIC) increased 125 bps year on year to 4. 2 per cent
• Consistent improvement in quality with 13th month persistency improving by 313 bps to 78.24 per cent in FY 2018-19
• Embedded value at Rs4900 crore, grew by 15 per cent year on year
• Sharp improvement in net VNB margin at 9.5 per cent vs. 4.3 per cent in previous year led by scale, product mix and productivity improvements

Health Insurance business

• Gross written premium at Rs497 crores, 2x over the previous year with retail business contributing 65 per cent
• Covering more than 2.3 million lives in its second year of full operation
• Rapid expansion in distribution capacity with 10 banca partners signed up
• Signed up with Axis bank in Q4 and will go live in Q1 FY 2019-20

Asset Management:

• Total average assets under management at Rs2,65,109 crores
• Domestic equity average Assets under Management (AAUM) grew by 21 per cent year on year with equity mix at 36 per cent with market share at 8.75 per cent   
• Profit before tax grew 24 per cent year on year to Rs650 crores
• Keeping its focus on expanding its retail presence, investor folios doubled over last 2 years to reach 7.1 million folios as on 31st March 2019

Note: Aditya Birla Sun Life AMC Ltd. and Aditya Birla Wellness Pvt. Ltd. consolidated based on equity accounting under Ind AS, Consolidated Revenue shown above includes revenues from these two businesses on a 100 per cent basis to show holistic financial performance

Disclaimer :Certain statements in this 'Media Release' may not be based on historical information or facts and may be 'forward looking statements' within the meaning of applicable securities laws and regulations, including, but not limited to, those relating to general business plans & strategy of the Company, its future outlook & growth prospects, future developments in its businesses, its competitive & regulatory environment and management's current views & assumptions which may not remain constant due to risks and uncertainties. Actual results could differ materially from those expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any statement, on the basis of any subsequent development, information or events, or otherwise. This 'Press Release' does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of the Company’s shares. The financial figures in this 'Press Release' have been rounded off to the nearest Rs. one Crore. The financial results are consolidated financials unless otherwise specified.