Aditya Birla Capital Q1 Results for the quarter ended June 2021

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


▪ Strong growth across businesses leading to highest ever consolidated profit for the first quarter, despite a Covid-hit quarter
▪ Consolidated 1 Revenue at Rs. 4,632 Crore (grew 8% year on year)
▪ Consolidated Net Profit at Rs. 302 Crore (grew 52% year on year)
▪ Active customer base at 25 million (grew 30% year on year) aided by the focus on granular retail growth across all businesses
▪ Continuing track record of consistent growth in profit delivery through the 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 personalized experience to transact and get serviced across all products of the platform
▪ Businesses leveraging partnerships to drive customer acquisition and growth at scale

Consolidated ResultsQuarter 1 (in Crores)
Revenue4632
Profit after tax302

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

The Consolidated 1 Revenue of the Company grew 8% year on year to Rs. 4,632 Crore. The Company, through its subsidiaries, continues to maintain its track record of delivering strong performance through the market and macroeconomic cycles, with its diversified business model. The consolidated profit after tax (after minority interest) grew 52% year on year, to Rs. 302 Crore.

The Company’s focus on 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% year-on-year growth. The scale is evidenced with overall AUM across asset management, life insurance, and health insurance businesses growing 26% 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% 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% of the total book.

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% year on year, leading to its contribution in the overall book increasing to 58% in June ’21, vis-à-vis 50% 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%, expanding by 131 bps year on year
  • Profit before tax at Rs. 315 Crore, reflecting a growth of 67%, year on year
  • Strong growth in return of assets at 2.0%, compared to 1.2% a year ago
  • Gross Stage 3 at 3.64%, compared to 3.60% in the previous year

Housing Finance Business:

  • Loan book at Rs. 11,301 Crore, with 95% retail mix
  • Focus on granular business with 58% disbursement in affordable segment
  • Affordable book mix at 29%, against 19% in the previous year
  • Highest ever net interest margin at 4.24%, expanding by 97 bps year on year
  • Profit before tax at Rs. 49 Crore, a growth of 39% over the previous year. Strong rebound in return on assets at 1.34% compared to 0.92% 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% year on year, to Rs. 2,75,454 Crore and domestic equity AAUM grew by 42% year on year, to Rs. 1,02,678 Crore
  • Domestic equity mix expanded to 37% compared to 34% 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% year on year
  • Profit before tax at Rs. 206 Crore, reflected a 58% year on year growth
  • PBT/AUM moved up to 30 bps, up from 24 bps in the previous year