Aditya Birla Capital reports highest ever quarterly profit in quarter ended 31st Dec, 2021

03 February, 2022

Consolidated¹ Revenue at Rs.6,054 Crore (up 13%, year on year)
Consolidated Net Profit doubled year on year to Rs.577 Crore
Delivered highest ever consolidated quarterly profit with strong growth across businesses
Active customer base at 31 million (grew 46% year on year) aided by focus on granular retail growth across all businesses
Continuing track record of consistent growth in profit delivery, backed by the diversified business model and synergies
Businesses leveraging partnerships and branch expansion to drive customer acquisition and growth at scale

(Rs. crore)

Consolidated results (Rs crore)	Quarter 3
Particulars	FY 21	FY 22
Revenue¹	5,352	6,054	13%
Profit after tax (after minority interest)	289	577	100%

Mumbai: Aditya Birla Capital Limited (“The Company”) announced its unaudited financial results for the quarter and nine months ended 31st December 2021.

The Consolidated¹ Revenue of the Company for Q3 FY22 grew 13 per cent year on year to Rs.6,054 Crore. The consolidated profit after tax (after minority interest) doubled year on year, to Rs.577 Crore, the highest level ever recorded by the Company. The reported consolidated PAT includes net gain of Rs.161 Crore from sale of ~ 1 per cent stake in the AMC business, through its IPO in October 2021.

The Company’s focus on building scale, growing its retail base and delivering consistent profitability, continues to yield results. The retailisation strategy has led to the active customer base growing to ~ 31 million, a 46 per cent year on year growth. The scale is evidenced with overall AUM across asset management, life insurance and health insurance businesses, growing 16 per cent year on year, to over Rs.3,72,423 Crore. The overall lending book (NBFC and Housing Finance) grew 7 per cent year on year, to Rs.61,411 Crore, making it a lending portfolio of scale. The gross premium (across Life and Health Insurance) for the nine months grew 24 per cent year on year, to Rs.9,236 Crore, reflecting the scale in insurance businesses.

The Q3 FY22 performance highlights of the key subsidiaries of Aditya Birla Capital Limited are:

Lending:

Overall lending book (NBFC and Housing) grew 7 per cent year on year, to Rs.61,411 Crore
Strong funding access and amongst best cost of borrowing in the industry
Raised over Rs.7,300 Crore of long-term funds in YTD FY22
Strong focus on retailisation with total customer base at over 2.3 million
Retail, SME and HNI segments now account for 67 per cent of the total lending book

¹ Aditya Birla Sun Life AMC Ltd. and Aditya Birla Wellness Pvt. Ltd. consolidated based on equity accounting under Ind AS, Consolidated Revenue shown above financial table includes revenues from these two businesses on a 100 per cent basis to show holistic financial performance

NBFC business:

Overall loan book grew to Rs.49,805 Crore, reflecting a 9 per cent year on year growth; the Retail, SME and HNI loan book grew 24 per cent year on year, leading to its contribution in the overall book being the highest ever at 60 per cent in December ’21, vis-à-vis 53 per cent in the previous year
Strong momentum in gross disbursement at Rs.6,622 Crore in Q3 FY22, grew 55 per cent year on year and 34 per cent quarter on quarter; Retail, SME and HNI contributed 69 per cent of Q3 FY22 gross disbursement
Highest ever net interest margin at 6.24 per cent, expanding by 100 bps year on year, led by growth in retail and SME segments and lower cost of borrowing
Profit before tax at Rs.385 Crore, reflecting a growth of 48 per cent, year on year
Strong growth in return on assets at 2.3 per cent, compared to 1.7 per cent a year ago

Housing Finance business:

Loan book at Rs.11,606 Crore, with 95 per cent retail mix
Rebound in gross disbursal in Q3 at Rs.1,095 Crore, with a year on year growth of 34 per cent; the affordable housing segment contributed 50 per cent of disbursements
Affordable housing book mix at 35 per cent, against 23 per cent in the previous year
Net interest margin at 4.21 per cent, expanded by 75 bps, year on year
Profit before tax at Rs.68 Crore, a growth of 42 per cent over the previous year
Strong return on assets at 1.8 per cent, compared to 1.3 per cent in the previous year

Asset Management:

Strong growth in assets under management with AAUM at Rs.3,10,860 Crore AUM, growing by 16 per cent year on year
Overall domestic average assets under management (AAUM) grew by 17 per cent year on year, to Rs.2,98,763 Crore, and domestic equity AAUM grew by 39 per cent year on year, to Rs.1,21,962 Crore
Domestic equity mix expanded to 41 per cent of AUM, compared to 34 per cent in the previous year with continued growth in SIP flows and folios (SIP monthly book at Rs.892 Crore)
Continued focus on building retail customer franchise with 7.6 million folios; added ~ one million folios in YTD FY22
Individual AUM grew 15 per cent year on year, to Rs.1,41,432 Crore; Individual mix at 48 per cent of total AUM
Profit before tax at Rs.249 Crore, reflecting a 28 per cent year on year growth
PBT/AUM moved up to 33.1 bps, from 30.1 bps in the previous year

Insurance:

Total gross written premium of life insurance and health insurance grew 24 per cent year on year, to Rs.9,236 Crore, in YTD FY22

Life Insurance business:

Individual First Year Premium (FYP) for Q3 FY22 grew 16 per cent year on year to Rs.575 Crore
Group business for Q3 FY22 grew 16 per cent year on year, to Rs.848 Crore, ahead of industry growth of 7 per cent
Renewal premium grew 27 per cent year on year, to Rs.4,258 Crore in YTD FY22, out of which 74 per cent has been collected digitally; total premium up 23 per cent year on year to 8,066 Crore
Consistent improvement in 13th month persistency to 84 per cent
Net VNB margin for Q3 FY22 expanded by 449 bps, year on year, to 16.8 per cent
Profit before tax for Q3 FY22 grew 12 per cent year on year, to Rs.40 Crore

Health Insurance business:

Gross written premium for Q3 FY22 at Rs.406 Crore; grew 31 per cent year on year, with retail contributing 65 per cent of total business
Business now covering 17 million lives, out of which over 13 million lives are through micro and byte size products
Business continues to build scale with focus on expenses, leading to improvement in combined ratio (normalized for COVID claims), at 113 per cent vis-à-vis 115 per cent in previous year
Robust digital enablement with 97 per cent policies issued digitally

Other businesses:

Profit before tax for the other businesses for Q3 FY22 grew 26 per cent year on year, to Rs.46 Crore, from Rs.36 Crore in the previous year
- General Insurance broking profit before tax for Q3 FY22 at Rs.16 Crore
- ARC platform AUM was at Rs.2,114 Crore and profit before tax for Q3 FY22 grew 43 per cent year on year, to Rs.16 Crore
- Stock and Securities broking business profit before tax for Q3 FY22 grew 53 per cent year on year, to Rs.9 Crore

Going forward:

Focus on maximising value of active customer base of 31 million while looking to continue to drive customer acquisition at scale
Leveraging technology and analytics to grow revenue per customer, improve customer experience, optimise costs, and build robust and scalable systems
Delivery of target growth and profitability across businesses

About Aditya Birla Capital Limited

Aditya Birla Capital Limited (ABCL) is the holding company for the financial services businesses of the Aditya Birla Group. With subsidiaries that have a strong presence across Protecting, Investing and Financing solutions, ABCL is a financial solutions group that caters to diverse needs of its customers across their life cycle. Powered with more than 30,000 employees, the subsidiaries of ABCL have a nationwide reach with 950+ branches and more than 2,00,000 agents/channel partners and several bank partners.

Aditya Birla Capital Limited is a part of the Aditya Birla Group, in the league of Fortune 500. Anchored by an extraordinary force of over 140,000 employees, belonging to 100 nationalities, the Aditya Birla Group operates in 36 countries across the globe.

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.

Aditya Birla Capital Limited
Corporate Identity Number L67120GJ2007PLC058890
Regd. Office: Indian Rayon Compound, Veraval 362 266 (Gujarat)
Corporate Office: One World Centre, Tower 1, 18th Floor, Jupiter Mills Compound,
841, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400 013
Follow us at : www.adityabirlacapital.com / www.twitter.com/abcapital