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

02 August, 2019

Consolidated results
(Rs. crore)
Quarter 1
Particulars FY 2018-19 FY 2019-20
Revenue1 3,424 3,962 16%
Profit before Tax1 (pre minority interest) 427 552  
Profit after Tax (after minority interest) 213 270 27%

Mumbai: Aditya Birla Capital Limited (ABCL) announced its unaudited financial results for the quarter ended 30th June 2019.

Consolidated Revenue1 of the company grew 16 per cent year on year to Rs.3,962 Crores. The company’s consolidated profit after tax (after minority interest) reflected a growth of 27 per cent year on year to Rs.270 Crores, largely driven by profit growth in NBFC, Housing Finance and Asset Management businesses.

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

Lending:

  • Overall lending book (NBFC and Housing Finance) grew 16 per cent year on year to Rs.61,998 Crores vs. Rs.53,584 Crores in the previous year
  • Lending book is backed by well-matched asset and liability mix and adequate liquidity pipeline to meet growth requirement
  • Raised about Rs.4,000 Crores of long-term funds during the quarter to fund growth
  • Continue to maintain quality of book

NBFC business

  • Loan book grew by 13 per cent year on year to Rs.50,171 Crores with SME and Retail mix grew by 25 per cent year on year
  • Net Interest Margin expanded by 50 bps year on year to 5.39 per cent
  • Profit before tax grew 20 per cent year on year to Rs.401 Crores 

Housing Finance business

  • Loan book grew 29 per cent year on year to Rs.11,827 Crores while maintaining healthy Net Interest Margin at 3.1 per cent
  • Cost to Income Ratio improved to 47per cent, as compared to 73per cent in previous year led by scale and operating efficiencies 
  • Profit before tax grew 3 times year on year to Rs.39 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.1,404 Crores 

Life Insurance business

  • Individual First Year Premium (FYP) grew 30 per cent year on year, significantly higher than industry (excl. LIC) growth at 15 per cent 
  • Consistent improvement in quality across periods with 13th month persistency improving by 591 bps year on year to 78.34 per cent
  • Market share (excl. LIC) increased 18 bps year on year to 3.9 per cent 
  • Continue to focus on balanced channel and product mix for value creation

Health Insurance business

  • Gross written premium at Rs.143 Crores, about 2 times over the previous year with retail business contributing 64 per cent
  • Covering more than 3.7 million lives  
  • Business continues to build scale with significant improvement in combined ratio at 146 per cent vs. 190 per cent in the previous year 
  • Rapid expansion in distribution capacity with 10 banca partners signed up 

Asset Management:

  • Total average assets under management at our Mutual Fund was Rs.2,70,360 Crores
  • Domestic equity average Assets under Management (AAUM) mix steady at 36 per cent with market share at 8.59 per cent
  • Profit before tax grew 20 per cent year on year to Rs.175 Crores 
  • Keeping its focus on expanding retail presence, investor folios grew 1.6 times over last 2 years to reach 7.1 million folios as on 30th June 2019

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