Aditya Birla Capital announced strong Q4 FY24 results

The consolidated revenue¹ of the Company grew by 32% year-on-year and consolidated profit after tax, excluding one-off items, grew 33% year-on-year.

• Consolidated Revenue^1,2 Rs. 2: 12,079 Crore in Q4 FY24 (↑32% y-o-y) and Rs. 39,050 Crore in FY24 (↑ 30% y-o-y)
• Consolidated PAT^2,3 :  Rs. 812 Crore in Q4 FY24 (↑ 33% y-o-y) and  Rs. 2,902 Crore in FY24 (↑ 41% y-o-y)
• NBFC lending portfolio crossed ` 1 lakh crore (↑ 31% y-o-y)
• Overall lending portfolio (NBFC and HFC): Rs. 1.24 lakh Crore (↑ 31% y-o-y)
• Mutual fund quarterly average AUM:  Rs. 3.32 lakh Crore (↑ 21% y-o-y)
• Total premium (life and health insurance):  Rs. 20,961 Crore in FY24 (↑ 18% y-o-y)
• Udyog Plus, a B2B platform for MSMEs reached ~ Rs. 250 Crore AUM to date
• ABCD, omnichannel D2C platform, has seen 1 lakh + registrations till date
• Sold ~ 5% stake in ABSLAMC through OFS, augmenting ABCL's capital base by ~ ` 570 Crore

(Rs. crore)

1. Consolidated segment revenue; for Ind AS statutory reporting purpose Asset management, wellness business and health insurance (from October 21, 2022) are not consolidated and included under equity accounting  
2. Excluding gain on sale of shares in AMC through OFS in Q4 FY24  
3. Excluding fair value gain on conversion of Aditya Birla Health Insurance from subsidiary to JV in Q3 FY23

Aditya Birla Capital Limited (“The Company”) announced its audited financial results for the quarter and year ended March 31, 2024.

The consolidated revenue¹ of the Company grew by 32% year-on-year to Rs. 12,079 Crore in Q4 FY24 and 30% year-on-year to Rs. 39,050 Crore in FY24. The consolidated profit after tax, excluding one-off items, grew 33% year-on-year to Rs. 812 Crore in Q4 FY24 and 41% year-on-year to Rs. 2,902 Crore in FY24.

The strong momentum across businesses led to a 31% year-on-year and 8% sequential growth in the overall lending portfolio (NBFC and HFC) to Rs. 1,24,059 Crore as on March 31, 2024. The total AUM (AMC, life insurance and health insurance) grew by 21% year-on-year to Rs. 4,36,442 Crore. The total premium (life insurance and health insurance) grew by 18% year-on-year to Rs. 20,961 crore in FY24.

The Company follows an omnichannel architecture for distribution, with customer-centricity as a key element. The Company’s D2C platform, ABCD, which has been built in a record time of 12 months, went live about a month ago. It offers a comprehensive portfolio of 22 products and services such as payments, loans, insurance, and investments along with comprehensive personal finance tracking such as ‘My Track’. The Company has witnessed a robust response for ABCD with more than 1 lakh registrations to date.

The Company continues to expand its footprint in the MSME segment through its comprehensive B2B platform, Udyog Plus, which has seen more than 8 lakh registrations to date. It offers a paperless digital journey for business loans and loan disbursement of up to 10 lakh. Udyog Plus has clocked disbursements of ~ 500 Crore to date with ABG ecosystem contributing about two-thirds of the business. The total AUM of Udyog Plus has reached ~ Rs. 250 crores to date.

The Company also continues to expand its physical footprint with a pan-India presence of 1,474 branches across all businesses as of March 31, 2024. The branch expansion is targeted at driving penetration into tier 3 and tier 4 towns and new customer segments.

During Q4 FY24, Aditya Birla Capital and Sunlife sold about 5% and 6.5% stake in ABSL AMC respectively through an offer for sale with the objective of meeting the minimum public shareholding requirement by October 2024, as required by SEBI regulation. The sale received an overwhelming response from investors across domestic and foreign funds. It helped Aditya Birla Capital to strengthen its balance sheet by enhancing the capital base by ~ 570 crore.

Highlights of NBFC business

• Disbursements grew by 10% sequentially and 16% year-on-year to Rs. 18,123 Crore in Q4 FY24. Disbursements grew by 31% year-on-year to Rs. 64,387 Crore in FY24
• The loan portfolio grew by 7% sequentially and 31% year-on-year to Rs. 105,639 Crore
• Loans to Retail, SME and HNI customers constitute 67% of the total loan portfolio
• Profit before tax grew by 31% year-on-year to Rs. 794 Crore in Q4FY24 and 43% year-on-year to Rs. 2,987 Crore in FY24
• Return on assets was maintained at a healthy level of 2.46% in FY24
• Return on equity grew by 234 basis points year-on-year to 17.10% in FY24
• Gross stage 2 and 3 assets declined by 36 basis points sequentially and 135 basis points year-on-year to 4.49% as of March 31, 2024

Highlights of Housing Finance business

• Disbursements grew by 64% year-on-year to Rs. 2,933 Crore in Q4 FY24 and 59% year-on-year to Rs. 8,450 Crore in FY24
• Loan portfolio grew by 11% sequentially and 33% year-on-year to Rs. 18,420 Crore
• Profit before tax grew by 14% year-on-year to Rs. 95 Crore in Q4FY24 and 22% year-on-year to Rs. 376 Crore in FY24
• Return on assets was maintained at a healthy level of 1.92% in FY24 
• Return on equity grew by 71 basis points year-on-year to 13.87% in FY24
• Gross stage 2 and 3 assets declined by 63 basis points sequentially and 208 basis points year-on-year to 2.91% as of March 31, 2024

Highlights of Asset Management business

• Mutual fund quarterly average assets under management (QAAUM) grew by 21% year-on-year to Rs. 3,31,709 Crore for Q4 FY24, with equity mix at 45.8%
• Individual monthly average assets under management grew by 23% year-on-year to Rs. 1,73,238 Crore in Mar 2024
• Monthly systematic investment plan (SIP) flows grew by 25% year-on-year to Rs. 1,252 Crore in Mar 2024
• Profit before tax grew by 48% year-on-year to Rs. 268 Crore in Q4FY24 and 27% year-on-year to Rs. 1,008 Crore in FY24

Highlights of Life Insurance business

• Individual First Year Premium (FYP) grew by 2% year-on-year to Rs. 3,074 Crore in FY24
• Renewal premium grew 24% year-on-year to Rs. 9,160 Crore in FY24
• 13th month persistency continued to improve at 88% in Mar 2024 (Mar 2023: 87%)
• 61st month persistency was strong at 65% in Mar 2024 (Mar 2023: 54%)
• Net VNB margin was 20.2% in FY24

Highlights of Health Insurance business

• Gross written premium (GWP) grew by 36% year-on-year to Rs. 3,701 Crore, with Retail contributing 52% of total GWP
• Market share among standalone health insurers (SAHI) increased by 82 basis points year-on-year to 11.2% in FY24
• Combined ratio remained stable at 110%