Aditya Birla Capital reports results for the quarter ended 31st December 2019

31 January, 2020

(Rs. in crores)
Quarter 3 Consolidated Results Nine Months
FY 2018-19 FY 2019-20 Particulars FY 2018-19 FY 2019-20
13% 4,118 4,645 Revenue1 11,520 12,906 12%
17% 214 250 Profit after Tax (after minority interest) 613 776 27%

Mumbai: Aditya Birla Capital Limited (“Company”) announced its unaudited financial results for the quarter ended 31st December 2019. 

Consolidated Revenue1 of the Company for the quarter grew 13 per cent year on year to Rs.4,645 Crores. The Company’s consolidated profit after tax (after minority interest) in Q3 FY 2019-20 grew by 17 per cent year on year to Rs.250 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 performance highlights of the key underlying businesses of Aditya Birla Capital Ltd. were:

Lending

  • Overall lending book (NBFC and Housing Finance) at Rs.60,123 Crores
  • NBFC and HFC have optimised asset and liability mix with adequate liquidity to meet growth requirements
  • Raised approximately Rs.11,000 Crores of long-term funds during the nine months
  • Continue to have strong focus on quality and reduced ticket sizes across the board

NBFC business:

  • Loan book at Rs.47,933 Crores with Retail book growing by 30 per cent y-o-y
  • Marginal drop in profitability in a challenging market environment
  • Net Interest Margin expanded by 41 bps year on year to 5.24 per cent

Housing Finance business:

  • Loan book grew y-o-y by 13 per cent to Rs.12,190 Crores while maintaining Net Interest Margin at 3 per cent
  • Cost to Income Ratio improved to 49 per cent, as compared to 58 per cent in previous year led by scale and operating efficiencies
  • Affordable loan book has grown significantly with 1.8x growth y-o-y
  • Quarterly profit after tax grew 31 per cent year on year to Rs.27 Crores 

Insurance

  • Total gross premium of life insurance and health insurance grew 18 per cent year on year to Rs.2,366 Crores

Life Insurance business:

  • Delivering on stated strategy of profitable growth with improvement in quality
  • Individual First Year Premium (FYP) grew 14 per cent year on year in nine months, maintaining market share 
  • Consistent improvement in quality with 13th month persistency improving by 562 bps year on year to 80.9 per cent
  • Net value of new business (VNB) for the quarter grew 2x to 10.4 per cent compared to 5.2 per cent in previous year
  • Continue to focus on balanced channel and product mix for value creation

Health Insurance business:

  • Gross written premium at Rs.547 Crores in nine months, a growth of 73 per cent over the previous year with retail business contributing 71 per cent
  • Covering more than 6.5 million lives out of which 3.8 million lives through micro products 
  •  Business continues to build scale with significant improvement in combined ratio during nine months at 142 per cent vs. 160 per cent in the previous year  

Asset Management:

  • Total average assets under management (AAUM) at our Mutual Fund was Rs.2,65,475 Crores
  • Domestic equity AAUM grew 6 per cent year on year contributing 37 per cent of overall domestic AAUM
  • Quarterly profit after tax grew 19 per cent year on year to Rs.130 Crores 
  • Keeping its focus on expanding its retail presence, we added 53 locations over the last one year to build a presence across 310 locations 
  • Continue to grow retail market share

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.

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% basis to show holistic financial performance

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