Aditya Birla Capital reports strong results for the quarter ended 30th June, 2021

05 August, 2021

Strong growth across businesses leading to highest ever consolidated profit for first quarter, despite a Covid-hit quarter
Consolidated1 Revenue at Rs.4,632 Crore (grew 8 per cent year on year)
Consolidated Net Profit at Rs.302 Crore (grew 52 per cent year on year)
Active customer base at 25 million (grew 30 per cent year on year) aided by focus on granular retail growth across all businesses
Continuing track record of consistent growth in profit delivery through market and macroeconomic cycles, backed by the diversified business model and synergies
Businesses seeing benefits of digital focus; launched first of its kind App offering customers a seamless and personalised experience to transact and get serviced across all products of the platform
Businesses leveraging partnerships to drive customer acquisition and growth at scale

(Rs. crore)

Consolidated results (Rs crore)	Quarter 1
Particulars	FY 21	FY 22
Revenue¹	4,292	4,632	8%
Profit after tax (after minority interest)	198	302	52%

Mumbai: Aditya Birla Capital Limited (“The Company”) announced its unaudited financial results for the quarter ended 30th June 2021.

The Consolidated¹ Revenue of the Company grew 8 per cent year on year to Rs.4,632 Crore. The Company, through its subsidiaries, continues to maintain its track record of delivering strong performance through market and macroeconomic cycles, with its diversified business model. The consolidated profit after tax (after minority interest) grew 52 per cent year on year, to Rs.302 Crore.

The Company’s focus in building scale, growing its retail base and delivering consistent profitability has yielded results. The retailisation strategy has led to the active customer base growing to ~ 25 million, a 30 per cent year on year growth. The scale is evidenced with overall AUM across asset management, life insurance and health insurance businesses growing 26 per cent year on year, to over Rs.3,43,000 Crore. The overall lending book (NBFC and Housing Finance) at Rs.57,182 Crore shows the scale in lending. The gross premium (across Life and Health Insurance) grew 10 per cent year on year to Rs.2,130 Crore, reflecting the scale in insurance.

The Q1 FY22 performance highlights of the key subsidiaries of Aditya Birla Capital Ltd. were as under:

Lending

Overall lending book (NBFC and Housing Finance) was at Rs.57,182 Crore
Strong funding access and amongst best cost of borrowing in the industry
Raised over Rs.2,500 Crore of long-term funds in Q1 FY22
Strong focus on retailisation with total customer base at 3.4 lacs and retail plus SME plus HNI accounting for 65 per cent of the total 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:

Consequent to the lockdown, loan book was flat year on year at Rs.45,881 Crore; However, Retail, SME and HNI loan book grew 15 per cent year on year, leading to its contribution in the overall book increasing to 58 per cent in June ’21, vis-à-vis 50 per cent in the previous year
Gross disbursement at Rs.2,553 Crore in Q1 FY22, with June ’21 disbursal of Rs.1,276 Crore, almost at pre COVID levels
Change in mix and lower cost of borrowing led to highest ever net interest margin at 6.14 per cent, expanding by 131 bps year on year
Profit before tax at Rs.315 Crore, reflecting a growth of 67 per cent, year on year
Strong growth in return of assets at 2.0 per cent, compared to 1.2 per cent a year ago
Gross Stage 3 at 3.64 per cent, compared to 3.60 per cent in the previous year

Housing Finance business:

Loan book at Rs.11,301 Crore, with 95 per cent retail mix
Focus on granular business with 58 per cent disbursement in affordable segment
Affordable book mix at 29 per cent, against 19 per cent in the previous year
Highest ever net interest margin at 4.24 per cent, expanding by 97 bps year on year
Profit before tax at Rs.49 Crore, a growth of 39 per cent over the previous year. Strong rebound in return on assets at 1.34 per cent compared to 0.92 per cent in the previous year

Asset Management:

Strong revival in assets under management, crossing the Rs.3,00,000 Crore AUM milestone in July 2021 backed by consistent investment performance
Overall domestic average assets under management (AAUM) grew by 28 per cent year on year, to Rs.2,75,454 Crore and domestic equity AAUM grew by 42 per cent year on year, to Rs.1,02,678 Crore
Domestic equity mix expanded to 37 per cent compared to 34 per cent in the previous year
Continued focus on building retail customer franchise with 7.2 million folios and Rs.1,33,353 Crore of retail AUM, up 30 per cent year on year
Profit before tax at Rs.206 Crore, reflected a 58 per cent year on year growth
PBT/AUM moved up to 30 bps, up from 24 bps in the previous year

Insurance:

Total gross premium of life insurance and health insurance grew 10 per cent year on year, to Rs.2,130 Crore in Q1 FY22.

Life Insurance business:

Individual First Year Premium (FYP) grew 5 per cent year on year, to Rs.325 Crore, on the back of 5 per cent growth in Q1 FY21
Renewal premium grew 41 per cent year on year, to Rs.1,092 Crore, out of which 69 per cent has been collected digitally
Consistent improvement in 13th month persistency to 83 per cent, from 81 per cent in the previous year
Net VNB margin, expanded by 300 bps year on year
Profit before tax grew 8 per cent year on year to Rs.31 Crore, in spite of surge in COVID claims

Health Insurance business:

Gross written premium at Rs.368 Crore; grew 50 per cent year on year, with retail contributing 70 per cent of total business
Business now covering 14.4 million lives, out of which over 10 million lives are through micro and byte size products
Business continues to build scale with focus on expenses, leading to significant improvement in combined ratio, which came in at 110 per cent (normalised for COVID claims) vis-à-vis 132 per cent in previous year;
Robust digital enablement with 98 per cent digital issuance and digital renewals at 92 per cent

Other businesses:

Profit before tax for the other businesses grew 31 per cent year on year, to Rs.54 Crore, from Rs.41 Crore in the previous year
- General Insurance broking profit before tax grew 29 per cent year on year to Rs.37 Crore
- ARC platform AUM was at Rs.1,978 Crore and profit before tax grew 15 per cent year on year, to Rs.10 Crore
- Stock and Securities broking business profit before tax grew 57 per cent year on year, to Rs.8 Crore

Going forward:

Focus on maximising value of active customer base of 25 million while looking to continue to drive customer acquisition at scale
Leveraging technology and analytics to grow revenue, improve customer experience, optimise costs, and build robust and scalable systems

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 23,500 employees, the subsidiaries of ABCL have a nationwide reach with 900+ 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, 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 Indiabulls Centre, Tower 1, 18th Floor, Jupiter Mills Compound,
841, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400 013
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