Aditya Birla Capital reports results for the quarter ended 30th September 2019

07 November, 2019

Quarter 2 Consolidated Results ( Rs Crore) Half Year
  FY 2018-19 FY 2019-20 Particulars FY 2018-19 FY 2019-20  
8% 3,978 4,299 Revenue 1 7,402 8,260 12%
  385 471 Profit before Tax1 (pre minority interest) 811 1,024  
37% 186 256 Profit after Tax (after minority interest) 399 526 32%

Mumbai: Aditya Birla Capital Limited (“Company”) announced its unaudited financial results for the quarter and half year ended 30th September 2019.

Consolidated Revenue1 of the Company for the quarter grew 8 per cent year on year to Rs.4,299 Crores. The Company’s consolidated profit after tax (after minority interest) in Q2 FY 2019-20 grew strongly by 37 per cent year on year to Rs.256 Crores, reflecting the strength of the diversified business portfolio. Considering the current business environment, the company continues to follow a disciplined approach in terms of balancing growth with a strong focus on the quality of business. The company has a track record of delivering growth in consolidated profit across economic cycles.

During the quarter, the company raised Rs.2,100 Crore of equity capital through preferential allotment to marquee investors and the Promoter / Promoter Group entities. The equity capital raised at Rs.100 per share, at a premium over the traded price, reflects the strong confidence in the business.

The performance highlights of the key underlying businesses of Aditya Birla Capital Ltd. were:

Lending:

  • Overall lending book (NBFC and Housing Finance) grew 4 per cent year on year to Rs.60,477 Crores vs. Rs.57,945 Crores in the previous year
  • NBFC and HFC have an optimised asset and liability mix with adequate liquidity to meet growth requirements
  • Raised approximately Rs.8,000 Crores of long-term funds during the half year
  • Further diversification of borrowing profile with sanction of USD 275 million (drawn USD 100 million) through ECB route
  • Continue to have strong focus on quality with greater diligence in underwriting and reduced ticket sizes across the board

NBFC business

  • Loan book at Rs.48,368 Crores with SME and Retail mix growing by 14 per cent year on year
  • Net Interest Margin expanded by 63 bps year on year to 5.28 per cent
  • Quarterly profit after tax grew 6 per cent year on year to Rs.218 Crores; adjusting for a one time impact of deferred tax, Quarterly profit after tax grew by 32 per cent year on year to Rs.273 Cr.

Housing Finance business

  • Loan book grew 22 per cent year on year to Rs.12,079 Crores while maintaining Net Interest Margin at 3.0 per cent
  • Cost to Income Ratio improved to 45 per cent, as compared to 70 per cent in previous year led by scale and operating efficiencies
  • Quarterly profit before tax grew 2.1 times year on year to Rs.28 Crores

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 includes revenues from these two businesses on a 100 per cent basis to show holistic financial performance

Insurance:

  • Total gross premium of life insurance and health insurance grew to Rs.1,716 Crores

Life Insurance business

  • Individual First Year Premium (FYP) grew 20 per cent year on year during the half year, higher than industry (excl. LIC) growth at 11 per cent
  • Consistent improvement in quality across periods with 13th month persistency improving by 610 bps year on year to 80.2 per cent
  • Embedded Value (EV) at Rs.5,031 as on 30th September 2019 with EV growing by 14.4 per cent
  • Continue to focus on balanced channel and product mix for value creation

Health Insurance business

  • Gross written premium at Rs.315 Crores, grew 78 per cent over the previous year with retail business contributing 67 per cent
  • Covering more than 5 million lives out of which 2.4 million lives through micro products
  • Business continues to build scale with significant improvement in combined ratio during half year at 155 per cent vs. 180 per cent in the previous year
  • One of the largest third party distribution capacities with 10 banca partners

Asset Management:

  • Total average assets under management (AAUM) at our Mutual Fund was Rs.2,69,393 Crores
  • Domestic equity AAUM mix steady at 35 per cent
  • Quarterly profit after tax grew 40 per cent year on year to Rs.148 Crores
  • Keeping its focus on expanding retail presence, investor folios have grown 1.5 times over last 2 years to reach 7.1 million folios

Aditya Birla Capital has a diversified portfolio of businesses catering to the life time needs of its customers. This diversification also allows the conglomerate to capture opportunities in different segments of the market and deliver consistent growth.

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