Aditya Birla Capital reports results for the year ended 31st March, 2020

• Consolidated Revenue: Rs. 18,028 Crore (grew 9% year on year)
• Consolidated Net Profit: Rs. 920 Crore (grew 6% year on year)
• Active Customer base grew to 20 million
• Raised Equity Capital of Rs. 2,100 Crore in Sept ‘19
• Raised over Rs. 15,000 Crores of long-term funds during the year

(Rs. in crores)

Quarter 4		Consolidated Results	Full Year
FY 2018-19	FY 2019-20	Particulars	FY 2018-19	FY 2019-20
5,050	5,122	Revenue1	16,570	18,028	11%
258	144	Profit after Tax (after minority interest)	871	920	6%

Mumbai: Aditya Birla Capital Limited (“Company”) announced its audited financial results for the quarter and year ended 31st March, 2020.

Consolidated Revenue of the Company grew 9% year on year to Rs. 18,028 Crores. The Company through its subsidiaries continued its consistent profit delivery through its diversified business model. The consolidated profit after tax (after minority interest) reflected a growth of 6% year on year to Rs. 920 Crores.

Aditya Birla Capital’s retailisation strategy has led to the active customer base growing to ~ 20 Million. The overall AUM across asset management, life insurance and health insurance was over Rs. 3,00,000 Crores. The overall lending book (NBFC and Housing Finance) stood at just under Rs. 60,000 Crores. The gross premium (across Life and Health Insurance) grew to Rs. 8,882 Crores. The Company raised Rs. 2,100 Crore of equity capital in September 2019 through a preferential allotment to the Promoter/Promoter group and marquee investors.

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

Lending:

• Overall lending book (NBFC and Housing Finance) stood at Rs. 59,159 Crores
• NBFC and HFC continue to have diversified portfolios with a focus on growing select segments as per the stated strategy
• Raised over Rs. 15,000 Crores of long-term funds during the year
• Continue to have strong focus on quality of book with reduced ticket sizes across the board
• Lending book is backed by well-matched asset and liability mix with adequate liquidity

NBFC business:

• Loan book at Rs. 47,057 Crores with focus on SME and retail segments
• Net Interest Margin expanded by 38 bps year on year to 5.29%
• Core operating profit continues to be strong with pre provision operating profit growing 16% year on year
• Additional COVID related provisions of Rs. 163 Crores in Q4 FY20
• The Net profit after tax stood at Rs. 821 Crores vis-à-vis Rs. 869 Cr. in previous year
• Raised long term borrowing of approximately Rs. 12,000 Crores during the year with “AAA” ratings being reaffirmed by both ICRA and India Ratings

Housing Finance business

• Loan book at Rs. 12,102 Crores, with 95% retail
• Maintained net interest margins at over 3%
• Cost to Income ratio improved to 46%, as compared to 61% in previous year, aided by scale and operating efficiencies
• The pre provision operating profit grew 64% year on year to Rs. 206 Crores
• Profit after tax grew 38% year on year to Rs. 103 Crores

Asset Management

• Total average assets under management (AAUM) at Rs. 2,66,988 Crores
• Domestic equity AAUM at 36% of overall domestic AAUM
• Keeping its focus on expanding its retail base, investor folios grew at 25% CAGR over last 5 years to reach 7.2 million folios, ahead of industry CAGR of 17%
• Profit after tax grew 10% year on year to Rs. 494 Crores; Return on equity at 38.9%
• Big increase in the number of transactions being done digitally, from 57% in 2018 to 95% in Apr-May ‘20

Insurance

• Total gross premium of life insurance and health insurance grew 11% year on year to Rs. 8,882 Crores

Life Insurance business

• Delivering on stated strategy of value accreting growth with improvement in quality
• Individual First Year Premium (FYP) stood at Rs 1,702 Crores, with year on year growth impacted due to the nation-wide lockdown in last two weeks of March ’20
• Has performed well in April and May with FYP of Rs. 148 Crores, despite lock down
• Consistent improvement in quality with 13th month persistency at 83%, from 78%
• Renewal Premium grew 21% year on year to Rs. 4,353 Crore

Health Insurance business

• Gross written premium at Rs. 872 Crores, grew 76% over the previous year, ahead of industry growth of 27% for Stand Alone Health Insurers, with Retail business contributing 72%
• The pace of growth continued in Apr-May ‘20, with total GWP growing at 71% over previous year
• Covering 8.3 million lives out of which 5.2 million lives through micro and byte size products
• Business continues to build scale with significant improvement in combined ratio at 134% vs. 149% in the previous year,
• One of the largest third party distribution capacities with 9 banca partners, with access to over 14,000 branches

Aditya Birla Capital has a diversified portfolio of businesses catering to the lifetime money needs of its customers. This diversification also allows the company to capture opportunities in different segments of the market and deliver consistent growth.

About Aditya Birla Capital Ltd.

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 21,000 employees, the subsidiaries of ABCL have a nationwide reach with 850+ branches and more than 2,00,000 agents/channel partners and several bank partners.

Aditya Birla Capital is a part of the Aditya Birla Group, a USD 48.3 billion Indian multinational, in the league of Fortune 500. Anchored by an extraordinary force of over 120,000 employees, belonging to 42 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 Indiabulls 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