Aditya Birla Capital Q2 FY25 Results: Strong earnings and PAT

Aditya Birla Capital Limited (“The Company”) announced its unaudited financial results for the quarter and half year ended September 30, 2024.

The consolidated profit after tax grew 42% year-on-year and 32% sequentially to ₹ 1,001 crore in Q2 FY25. The consolidated profit after tax includes gain of ₹ 167 crore on sale of entire stake of 50% in Aditya Birla Insurance Brokers Limited.

The consolidated revenue* grew by 36% year-on-year to ₹ 12,007 crore in Q2 FY25. The overall lending portfolio (NBFC and HFC) grew by 27% year-on-year and 8% sequentially to ₹ 1,37,946 crore as on September 30, 2024.The total AUM (AMC, life insurance and health insurance) grew by 24% year-on-year and 9% sequentially to ₹ 5,01,152 crore as on September 30, 2024. The total premium (life insurance and health insurance) grew by 29% year-on-year to ₹ 10,828 crore in H1 FY25.

The Company’s omnichannel architecture allows customers to choose the channel of their choice and interact seamlessly across digital platforms, branches and VRMs, fostering engagement and loyalty. The Company’s D2C platform, ABCD offers a comprehensive portfolio of more than 20 products and services such as payments, loans, insurance, and investments. Its unique feature of ‘My Track’ helps users track their personal finance, credit history and health. During the quarter, the Company has introduced new products such as digigold gifting, family health scan and pocket insurance. It helps customers to fulfil their financial needs and serves as an acquisition engine for the Company. The platform has witnessed a strong response with more than 2.5 million customer acquisitions till date.

The comprehensive B2B platform for the MSME ecosystem, Udyog Plus, offers seamless, paperless digital journey for business loans, supply chain financing and a host of other value-added services. It continues to scale up quite well with more than 1.6 million registrations. The Company is also seeing an increased adoption from its existing customers, and as a result the total portfolio of Udyog Plus has crossed ₹ 2,900 crore.

The Company has a pan-India presence of 1,470 branches across all businesses as of September 30, 2024. The Company is focused on capturing white spaces and driving penetration into tier 3 and tier 4 towns and new customer segments.
 

Highlights of NBFC business in Q2 FY25

• Disbursements grew by 17% year-on-year and 44% sequentially to ₹ 19,322 crore
• AUM grew by 23% year-on-year and 7% sequentially to  ₹ 1,14,710 crore 
• Loans to Retail, SME and HNI customers constitute 65% of the total portfolio 
• Profit before tax grew by 15% year-on-year to ₹ 844 crore 
• Return on assets was 2.34% and return on equity was 15.56% 
• Credit costs improved by 18 basis points sequentially from 1.43% to 1.25% 
• Gross stage 2 and 3 ratio improved by 100 basis points year-on-year and 21 basis points sequentially to 4.24% 
   

Highlights of Housing Finance business in Q2 FY25

• Disbursements grew by 113% year-on-year and 31% sequentially to ₹ 4,010 crore
• AUM grew by 51% year-on-year and 14% sequentially to ₹ 23,236 crore
• Profit before tax grew by 7% year-on-year and 22% sequentially to ₹ 104 crore
• Return on assets was 1.53% and return on equity was 11.54%
• Gross stage 2 and 3 ratio improved by 218 basis points year-on-year and 42 basis points sequentially to 2.22% 
   

Highlights of Asset Management business in Q2 FY25 

• Mutual fund quarterly average assets under management (QAAUM) grew by 9% sequentially and 23% year-on-year to ₹ 3,83,309 crore, with equity mix at 47.1%
• Equity QAAUM grew by 39% year-on-year to ₹ 1,80,658 crore
• Individual monthly average assets under management grew by 28% year-on-year to ₹ 2,03,391 crore
• Monthly systematic investment plan (SIP) flows grew by 47% year-on-year to   ₹ 1,425 crore in September 2024
• Profit before tax grew by 42% year-on-year to ₹ 335 crore

Highlights of Life Insurance business in H1 FY25

• Individual First Year Premium (FYP) grew by 33% year-on-year to ₹ 1,578 crore
• Group New Business Premium grew by 45% year-on-year to ₹ 2,834 crore
• Renewal premium grew by 12% year-on-year to ₹ 3,942 crore
• 13th month persistency continued to improve at 88% in September 2024 (September 2023: 87%)
• 61st month persistency was strong at 67% in September 2024 (September 2023: 60%)
• Net VNB margin was 7.4%
• Embedded value grew by 21% year-on-year to ₹ 12,368 crore

Highlights of Health Insurance business in H1 FY25

• Gross written premium (GWP) grew by 39% year-on-year to ₹ 2,171 crore, with Retail premium growth at 51% year-on-year
• Market share among standalone health insurers (SAHI) increased by 123 basis points year-on-year to 11.9%
• Combined ratio improved to 113% from 119% in H1 FY24

*Consolidated segment revenue; for Ind AS statutory reporting purpose Asset management, wellness business and health insurance are not consolidated and included under equity accounting.