Aditya Birla Capital reports strong results for the quarter ended 30th June, 2022

• Accelerated growth momentum across businesses led to strong quarterly results
• Delivered highest ever Q1 consolidated profit, with strong performance across businesses
• Consolidated¹ Revenue grew 26% year on year to Rs.5,859 Crore
• Consolidated PAT grew 42% year on year to Rs.429 Crore
• Active customer base at 39 million (up 55% year on year) aided by focus on granular retail growth across all businesses
• On track to deliver ahead of long term guidance (FY24) across businesses

(Rs. crore)

Consolidated results	Quarter 1
Particulars	FY 22	FY 23
Revenue1	4,632	5,859	26%
Profit after tax (after minority interest)	302	429	42%

Mumbai: Aditya Birla Capital Limited (“The Company”) announced its unaudited financial results for the quarter ended 30th June 2022.

The Consolidated Revenue¹ of the Company grew 26 per cent, year on year, to Rs.5,859 Crore. The consolidated profit after tax (after minority interest) grew 42 per cent year on year, to Rs.429 Crore, the highest ever first Quarter profit recorded by the Company. 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 Company's retailisation strategy has led to the active customer base growing to ~ 39 million, a 55% year on year growth. The company has achieved scale across businesses as following:

• Overall lending book (NBFC and HFC) grown 22 per cent year on year, to Rs.69,887 Crore
• Gross premium (Life and Health Insurance) grew 53 per cent year on year, to Rs.3,250 Crore
• Overall AUM across asset management, life insurance and health insurance businesses grew 4 per cent year on year, to Rs.3,55,612 Crore

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

Lending:

• Overall lending book (NBFC and Housing) grew 22 per cent year on year, to Rs.69,887 Crore
• Strong focus on retailisation, with total active customer base at over 4.8 million
• Retail, SME and HNI segments now account for 69 per cent of the total lending book
• Strong funding access and amongst top decile in term of cost of borrowing in the industry
• Raised over Rs.4,500 Crore of long-term funds in Q1 FY23

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% basis to show holistic financial performance

NBFC business:

• Overall loan book grew 26 per cent year on year, to Rs.57,839 Crore, while Retail, SME and HNI loan book grew 39 per cent year on year, leading to its contribution in the overall book being the highest ever at 64 per cent as on June 22, vis-à-vis 58 per cent in the previous year
• Strong momentum in gross disbursement at Rs.8,039 Crore in Q1 FY23, up 3.1 times over previous year; in line with the business’s focus. Retail, SME and HNI segments contributed 73 per cent of Q1 FY22 gross disbursements  
• Highest ever net interest margin at 6.47 per cent, expanding by 33 bps year on year, led by growth in retail and SME segments and lower cost of borrowing
• Continue to maintain strong quality of assets with Gross stage 3 at 3.2 per cent; reduced by 40 bps year on year. The provision coverage on stage 3 enhanced to 48 per cent, vis-à-vis 42.7 per cent in the previous year  
• Profit before tax at Rs.459 Crore, reflecting a significant growth of 46 per cent year on year
• Strong growth in return on assets at 2.5 per cent, compared to 2.0 per cent in the previous year
• Return on equity expanded by 330 bps year to year, to 14.3 per cent, compared to 11.0 per cent in previous year

Housing Finance business:

• Loan book grew 7 per cent year on year, to Rs12,049 Crore, with 94 per cent retail mix
• Gross disbursal continues to be strong at Rs.867 Crore in Q1 FY22; in line with the business focus. The affordable housing segment contributed 48 per cent of disbursements
• Affordable housing book grew 45 per cent to Rs.4,745 Crore, leading to increase in affordable mix at 39 per cent, against 29 per cent in the previous year  
• Highest ever net interest margin at 4.59 per cent, expanded by 59 bps, year on year
• Profit before tax at Rs.72 Crore, reflecting strong growth of 45 per cent over the previous year
• Strong return on assets at 1.9 per cent, compared to 1.3 per cent in the previous year

Asset Management:

• Mutual fund quarterly average assets under management (QAAUM) at Rs.2,81,527 Crore
• Domestic equity QAAUM grew by 14 per cent year on year, to Rs.1,16,809 Crore
• In line with ABSLAMC’s focus, domestic equity mix expanded to 41.5 per cent of mutual fund AUM, compared to 37.3 per cent in the previous year
• Continued focus on building retail customer franchise with a total of 8.1 million folios
• Monthly systematic inflows at Rs.898 Crore in Jun ’22 with 3.2 million accounts; registered  ~ 2.77 lacs new SIP (Incl. STP) in Q1 FY22, grew 23 per cent, year on year
• With our focus on growing alternate asset segment, passive AUM crossed Rs.12,000 Crore
• Operating profit before tax at Rs.172 Crore; flat over previous year. Interest rate and equity market volatility led to Mark-to-Market (MTM) impact on Other Income, leading to reduction in PBT to Rs.141 Crore, vis-à-vis Rs.206 Crore in the previous year

Insurance:

• Total gross written premium of life insurance and health insurance grew 53 per cent year on year, to Rs.3,250 Crore in Q1 FY23

Life Insurance business:

• Individual First Year Premium (FYP) grew 26 per cent year on year, to Rs.409 Crore
• Group business grew 1.9 times year on year, to Rs.885 Crore
• Renewal premium grew 18 per cent year on year, to Rs.1,285 Crore, out of which 74 per cent was collected digitally
• Total gross premium up 49 per cent year on year, to 2,620 Crore
• Consistent improvement in 13th month persistency to 85 per cent, compared to 83per cent a year ago
• Net VNB margin expanded by a significant 460 bps year on year, to 2.5 per cent
• Profit before tax grew 8 per cent year on year, to Rs.33 Crore

Health Insurance business:

• Gross written premium at Rs.630 Crore; grew 71 per cent year on year, with retail and rural contributing 59 per cent of total business
• The market share expanded by 299 bps year on year to 12 per cent, amongst SAHI players in Q1 FY23   
• Business now covering 22 million lives, out of which over 17 million lives are through micro and byte size products
• Business continues to build scale with focus on expenses, leading to improvement in combined ratio at 109 per cent vs. 154 per cent in the previous year
• The Net loss has reduced to Rs.71 Crore, vis-à-vis Rs.128 Crore in the previous year

Other businesses

• Profit before tax for the other financial services businesses under ABC grew 41 per cent year on year, to Rs.75 Crore, from Rs.53 Crore in the previous year
  • General Insurance broking profit before tax grew 21 per cent year on year, to Rs.45 Crore
  • Stock and Securities broking business profit before tax grew 42 per cent year on year, to Rs.11 Crore
  • Stressed assets platform profit before tax grew 87 per cent year on year, to Rs.17 Crore

Going forward

• Leveraging synergies across platform including ABG/ABC ecosystem
• Leveraging technology and analytics to grow revenue, improve customer experience, optimise costs, and build robust and scalable business model
• To accelerate growth momentum across business to build scale
• Focus on customer acquisition engines, including direct channels across businesses
• Deepening penetration with increased geographic presence

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 33,500 employees, the subsidiaries of ABCL have a nationwide reach with 1094 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