Aditya Birla Capital

Aditya Birla Capital has continued strong growth momentum and recorded 17% increase in net profit to Rs 758.84 crore in Q1FY2025 over Q1FY2024. The income from operations increased 25.37% to Rs 8816.30 crore in Q1FY2025. The revenue of NBFC (34.39% of total revenues) segment has gone up 25.50% to Rs 3,554.70 crore. The revenue of Housing Finance (5.23% of total revenues) segment has gone up 29.39% to Rs 540.49 crore. The revenue of Life Insurance (42.56% of total revenues) segment has gone up 22.40% to Rs 4,399.40 crore. The revenue of Asset Management (4.65% of total revenues) segment has gone up 24.05% to Rs 480.80 crore. The revenue of General Insurance Broking (1.55% of total revenues) segment has gone up 111.67% to Rs 159.83 crore. The revenue of Stock and Securities Broking (1.16% of total revenues) segment has gone up 50.58% to Rs 119.41 crore. The revenue of Health Insurance (9.51% of total revenues) segment has gone up 36.38% to Rs 982.50 crore. The revenue of Other Financial Services (0.96% of total revenues) segment has gone up 51.18% to Rs 98.96 crore.

PBIT of NBFC segment rose 20.59% to Rs 832.92 crore (accounting for 66.97% of total PBIT). PBIT of Housing Finance segment rose 0.33% to Rs 84.77 crore (accounting for 6.82% of total PBIT). PBIT of Life Insurance segment rose 7.50% to Rs 21.49 crore (accounting for 1.73% of total PBIT). PBIT of Asset Management segment rose 26.72% to Rs 304.51 crore (accounting for 24.48% of total PBIT). PBIT of General Insurance Broking segment rose 20.92% to Rs 29.59 crore (accounting for 2.38% of total PBIT). PBIT of Stock and Securities Broking segment rose 71.11% to Rs 22.33 crore (accounting for 1.80% of total PBIT). PBIT of Health Insurance reported loss of Rs 54.03 crore (accounting for (-)4.34% of total PBIT) compared to loss of Rs 62.51 crore. PBIT of Other Financial Services segment fell 86.09% to Rs 2.13 crore (accounting for 0.17% of total PBIT).

Overall OPM has increased to 36.73% in Q1FY2025 rom 36.27% in Q1FY2024, leading to 26.95% rise in operating profit to Rs 3243.72 crore. Other expenditure as a percentage of total income moved down to 54.09% from 54.30%. The staff cost as a percentage of total income declined to 4.91% from 5.04%. The provisions as percentage of total income declined to 4.27% from 4.39%.

Other income increased 638.22% to Rs 48.87 crore. Interest cost increased 34.29% to Rs 2244.02 crore. Depreciation moved up 29.53% to Rs 55.44 crore. PBT moved up 17.13% to Rs 993.13 crore.

he effective tax rate increased to 29.71% compared to 28.99%. Provision for tax was expense of Rs 295.09 crore, compared to Rs 245.82 crore. Profit after tax rose 15.94% to Rs 698.04 crore.

There was profit attributable to non-controlling interest of Rs 20.40 crore as compared to Rs 16.94 crore. The share of profit of associate companies increased 27.65% to Rs 81.2 crore. Finally, Net profit attributable to owners moved up 16.97% to Rs 758.84 crore.

Book value of the company stood at Rs 106.0 per share, while adjusted book value (net of Net Stage 3 assets and 10% of restructured loans) stood at 99.8 per share end June 2024.

Business highlights

The overall lending portfolio (NBFC and HFC) grew by 27% yoy to Rs 127705 crore end June 2024.The total AUM (AMC, life insurance and health insurance) grew by 20% yoy to Rs 462891 crore. The total premium (life insurance and health insurance) grew by 30% yoy to Rs 5027 crore.

The Company has a pan-India presence of 1505 branches across all businesses end June 2024. The branch expansion is targeted at driving penetration into tier 3 and tier 4 towns and new customer segments.

NBFC business

AUM grew by 25% yoy to Rs 107306 crore

Loans to Retail, SME and HNI customers constitute 66% of the total portfolio

Profit before tax grew by 21% yoy to Rs 833 crore

Return on assets was at 2.41%

Return on equity grew by 29 basis points sequentially to 16.13%

Gross stage 2 and 3 ratio improved by 4 basis points sequentially and 101 basis points yoy to 4.45%

Housing Finance business

Disbursements grew by 89% yoy to 3068 crore

AUM grew by 11% sequentially and 41% yoy to 20399 crore

Profit before tax was Rs 85 crore

Return on assets was 1.44% and return on equity was 11.04%

Gross stage 2 and 3 ratio improved by 27 basis points sequentially and 214 basis points yoy to 2.64%

sset Management business

Mutual fund quarterly average assets under management (QAAUM) grew by 6% sequentially and 19% yoy to 352542 crore, with equity mix at ~ 46%

Equity QAAUM grew by 37% yoy to 162129 crore

Individual monthly average assets under management grew by 24% yoy to 185681 crore

Monthly systematic investment plan (SIP) flows grew by 39% yoy to 1367 crore in June 2024

Profit before tax grew by 27% yoy to 305 crore

Life Insurance business

Individual First Year Premium (FYP) grew by 19% yoy to 644 crore

Group new business premium grew by 41% yoy to Rs 1498 crore

Renewal premium grew 17% yoy to 1681 crore

13th month persistency continued to improve at 88% in June 2024 (June 2023: 87%)

61st month persistency was strong at 66% in June 2024 (June 2023: 57%)

Net VNB margin was 6.50%

Health Insurance business

Gross written premium (GWP) grew by 35% yoy to 1041 crore, with Retail premium growth at 51% yoy

Market share among standalone health insurers (SAHI) increased by 92 basis points yoy to 12.5%

Combined ratio improved to 112% from 118% in Q1 FY24

Financial Performance FY2024

For the year ended March 2024 (FY2024), the consolidated net revenue of the company increased 24% to Rs 34019.11 crore. The revenue in NBFC segment moved up 54% to Rs 12702.22 crore, Life Insurance 18% to Rs 18254.09 crore, Health Insurance 35% to Rs 3459.18 crore and Housing Finance 31% to Rs 1834.60 crore. Further, the revenues from Asset Management 21% to Rs 1634.10 crore, Other Financial Services increased 392% to Rs 890.07 crore and Stock & Securities Broking 48% to Rs 394.37 crore. The revenue from General Insurance Broking declined -9% to Rs 564.70 crore in FY2024 over FY2023.

The interest cost surged 61% to Rs 7617.25 crore, while depreciation moved up 34% to Rs 193.82 crore. PBT jumped 46% to Rs 3823.36 crore in FY2024. The effective tax rate rose to 26.53% in FY2024 from 15.13% in FY2023. Net Profit after non-controlling interest came in at Rs 3334.98 crore in FY2024.

Aditya Birla Capital: Consolidated Results
Particulars	2406 (3)	2306 (3)	Var %	2403 (12)	2303 (12)	Var %
Income from Operations	8816.30	7044.97	25	34019.11	27415.65	24
OPM (%)	36.61	36.27		33.95	27.15
OP	3227.59	2555.10	26	11548.05	7443.81	55
Other Income	48.87	6.62	638	86.38	46.61	85
PBDIT	3276.46	2561.72	28	11634.43	7490.42	55
Interest (Net)	2244.02	1671.01	34	7617.25	4722.00	61
PBDT	1032.44	890.71	16	4017.18	2768.42	45
Depreciation / Amortization	55.44	42.80	30	193.82	144.83	34
PBT before EO	977.00	847.91	15	3823.36	2623.59	46
EO	16.13	0.00	-	486.43	2739.07	-82
PBT after EO	993.13	847.91	17	4309.79	5362.66	-20
Tax Expenses	295.09	245.82	20	1143.47	811.16	41
PAT	698.04	602.09	16	3166.32	4551.50	-30
Profit attributable to non-controlling interest	20.40	16.94	20	103.91	28.30	267
Share of profit/loss of Associate	81.20	63.61	28	272.57	272.57	0
Net Profit after minority and share in associate	758.84	648.76	17	3334.98	4795.77	-30
EPS *	11.4	10.0		11.5	9.5
Adj BV (Rs)	99.9	86.2		97.1	76.9
* Annualized on current equity of Rs 2602.08 crore. Face Value: Rs 10, Figures in Rs crore, PL: Profit to Loss, LP: Loss to Profit
Source: Capitaline Corporate Database

 

Aditya Birla Capital: Segment Results
Particulars	(%) of Total	2406 (3)	2306 (3)	Var (%)	(%) of Total	2403 (12)	2303 (12)	Var (%)
Segment Revenue
NBFC	739	3554.70	2832.48	25	777	12702.22	8236.87	54
Housing Finance	112	540.49	417.73	29	112	1834.60	1405.25	31
Life Insurance	915	4399.40	3594.32	22	1117	18254.09	15439.01	18
Asset Management	100	480.80	387.60	24	100	1634.10	1349.13	21
General Insurance Broking	33	159.83	75.51	112	35	564.70	617.99	-9
Stock & Securities Broking	25	119.41	79.30	51	24	394.37	266.76	48
Health Insurance	204	982.50	720.40	36	212	3459.18	2562.88	35
Other Financial Services	21	98.96	65.46	51	54	890.07	180.78	392
Total Segmental Revenue	2150	10336.09	8172.80	26	2432	39733.33	30058.67	32
Less: Inter Segment Revenue		-62.19	-29.09	114		-197.04	-59.79	230
Total Segment Revenue from Operations (Net)	2137	10273.90	8143.71	26		39536.29	29998.88	32
Segment Results (Profit Before Tax)
NBFC	274	832.92	690.68	21	296	2987.07	2090.18	43
Housing Finance	28	84.77	84.49	0	37	376.46	308.53	22
Life Insurance	7	21.49	19.99	8	20	197.61	196.45	1
Asset Management	100	304.51	240.30	27	100	1008.15	793.86	27
General Insurance Broking	10	29.59	24.47	21	7	67.43	97.26	-31
Stock & Securities Broking	7	22.33	13.05	71	7	68.93	46.68	48
Health Insurance	-18	-54.03	-62.51	-14	-19	-186.99	-218.01	-14
Other Financial Services	1	2.13	15.31	-86	58	581.33	2786.92	-79
Total Segment Results	408	1243.71	1025.78	21	506	5099.99	6101.87	-16
Capital employed
NBFC	1512	17650.03	11649.07	52	1432	15067.28	11069.28	36
Housing Finance	223	2598.96	1965.63	32	210	2206.95	1895.06	16
Life Insurance	327	3813.73	3510.53	9	362	3804.07	3208.58	19
Asset Management	297	3471.04	2716.12	28	306	3216.02	2520.44	28
General Insurance Broking	16	186.81	120.14	55	15	154.34	100.95	53
Stock & Securities Broking	29	343.32	288.45	19	31	325.51	277.65	17
Health Insurance	100	1167.00	1172.33	0	100	1052.30	1220.69	-14
Other Financial Services	216	2515.13	3722.80	-32	270	2839.83	845.06	236
Total Segment	2720	31746.02	25145.07	26	2724	28666.30	21137.71	36
Inter-Segment Elimination	0	0.00	0.00	-	0	0.00	0.00	-
Add: Unallocated Corporate	-22	-252.25	6.10	-4235	-19	-200.96	120.25	-267
Total	2699	31493.77	25151.17	25	2705	28465.34	21257.96	34
Figures in Rs crore, PL: Profit to Loss; LP Loss to Profit
Source: Capitaline Corporate Database