|
Aditya Birla
Capital has continued report strong performance with 42% jump in the net profit
to Rs 429.47 core in the quarter ended June 2022 compared with Rs 302.03 crore
in the corresponding quarter last year. The company has exhibited sharp acceleration
in loan growth and improved margins, while maintained stable asset quality.
The overall
loan book of the company has increased 22% end March 2022, while accelerated
retail loans growth to 39%. The company has maintained stable asset quality in
Q4FY2022.
The
revenue from Life Insurance increased 37% to Rs 2788.60 crore and NBFC 17% to
Rs 1612.05 crore, while the revenue from Health Insurance moved up 70% to Rs
594.59 crore, and Housing Finance 2% to Rs 312.88 crore. The revenue from Other
Financial Services also jumped 33% to Rs 40.34 crore, while the revenue from
General Insurance Broking moved up 29% to Rs 190.43 crore and Stock & Securities
Broking 18% to Rs 62.86 crore. However, the revenue from Asset Management
declined 19% to Rs 269.28 crore in Q1FY2023.
The PBT
from Other Financial Services increased 134% to Rs 13.06 crore and NBFC 46% to
Rs 458.52 crore, while the PBT from Housing Finance moved up 45% to Rs 71.62
crore, Stock & Securities Broking 42% to Rs 11.24 crore and General
Insurance Broking 21% to Rs 44.65 crore in Q1FY2023. The PBT from Life
Insurance also gained 8% to Rs 33.46 crore, while the PBT from Asset Management
declined 32% to Rs 140.80 crore. Health Insurance segment recorded pre-tax
losses of to Rs 69.96 crore in Q1FY2023.
Performance for
Q1FY2023
Overall
OPM eased to 26.88% in Q1FY2023 from 27.90% in Q1FY2022, as other expenditure
as a percentage of net sales moved up to 65.78% from 62.22%. The staff cost as
a percentage of net sales eased to 4.42% from 4.67% in Q1FY2022. Further, the
provisions declined to 2.92% from 5.20% in Q1FY2022.
Interest
cost rose 7% to Rs 916.98 crore. Depreciation was up 15% to Rs 32.27 crore. PBT
jumped 77% to Rs 561.91 crore in the quarter ended March 2022. The effective
tax rate declined to 33.8% from 40.0%. There was profit attributable to
non-controlling interest of Rs 5.65 crore in Q1FY2023 compared with 31.69 in Q1FY2022.
The share of profit from associates declined 35% to Rs 51.77 crore. Net Profit,
increased 42% to Rs 429.47 crore in the quarter ended March 2022.
Book value of the company stood at Rs 65.9 per
share, while adjusted book value (net of Net Stage 3 assets and 10% of restructured
loans) stood at 60.3 per share end June 2022.
Segment wise
performance
Overall
lending book (NBFC and Housing) grew 22% year on year, to Rs 69887 crore.
Strong
focus on retailisation, with total active customer base at over 4.8 million.
Retail, SME
and HNI segments now account for 69% of the total lending book.
Strong
funding access and amongst top decile in term of cost of borrowing in the
industry.
Raised
over Rs 4500 crore of long-term funds in Q1FY23.
NBFC business:
Overall
loan book grew 26% year on year, to Rs 57839 crore, while Retail, SME and HNI
loan book grew 39% year on year, leading to its contribution in the overall
book being the highest ever at 64% end June 2022 against 58% in the previous
year .
Strong
momentum in gross disbursement at Rs 8039 crore in Q1FY23, up 3.1 times over
previous year; in line with the business’s focus. Retail, SME and HNI segments
contributed 73% of Q1FY22 gross disbursements
Highest
ever net interest margin at 6.47%, expanding by 33 bps year on year, led by
growth in retail and SME segments and lower cost of borrowing
Continue
to maintain strong quality of assets with Gross stage 3 at 3.2%; reduced by 40
bps year on year. The provision coverage on stage 3 enhanced to 48%, against
42.7% in the previous year
Profit
before tax at Rs 459 crore, reflecting a significant growth of 46% year on year
Strong
growth in return on assets at 2.5%, compared to 2.0% in the previous year
Return
on equity expanded by 330 bps year to year, to 14.3%, compared to 11.0% in previous
year
Housing Finance business:
Loan
book grew 7% year on year, to Rs 12049 crore, with 94% retail mix
Gross
disbursal continues to be strong at Rs 867 crore in Q1FY22; in line with the
business focus. The affordable housing segment contributed 48% of disbursements
Affordable
housing book grew 45% to Rs 4745 crore, leading to increase in affordable mix
at 39%, against 29% in the previous year
Highest
ever net interest margin at 4.59%, expanded by 59 bps, year on year
Profit
before tax at Rs 72 crore, reflecting strong growth of 45% over the previous
year
Strong
return on assets at 1.9%, compared to 1.3% in the previous year
Asset Management:
Mutual
fund quarterly average assets under management (QAAUM) at Rs 281527 crore
Domestic
equity QAAUM grew by 14% year on year, to Rs 116809 crore
In line
with ABSLAMC’s focus, domestic equity mix expanded to 41.5% of mutual fund AUM,
compared to 37.3% in the previous year
Continued
focus on building retail customer franchise with a total of 8.1 million folios
Monthly
systematic inflows at Rs 898 crore in Jun ’22 with 3.2 million accounts;
registered ~ 2.77 lacs new SIP (Incl. STP) in Q1FY22, grew 23%, year on year
With
focus on growing alternate asset segment, passive AUM crossed Rs 12000 crore
Operating
profit before tax at Rs 172 crore; flat over previous year. Interest rate and
equity market volatility led to Mark-to-Market (MTM) impact on Other Income,
leading to reduction in PBT to Rs 141 crore, against Rs 206 crore in the
previous year
Insurance:
Total
gross written premium of life insurance and health insurance grew 53% year on
year, to Rs 3250 crore in Q1FY23
Life Insurance business:
Individual
First Year Premium (FYP) grew 26% year on year, to Rs 409 crore
Group
business grew 1.9 times year on year, to Rs 885 crore
Renewal
premium grew 18% year on year, to Rs 1285 crore, out of which 74% was collected
digitally
Total
gross premium up 49% year on year, to 2620 crore
Consistent
improvement in 13th month persistency to 85%, compared to 83% a year ago
Net VNB
margin expanded by a significant 460 bps year on year, to 2.5%
Profit
before tax grew 8% year on year, to Rs 33 crore
Health Insurance business:
Gross
written premium at Rs 630 crore; grew 71% year on year, with retail and rural
contributing 59% of total business
The
market share expanded by 299 bps year on year to 12%, amongst SAHI players in
Q1FY23
Business
now covering 22 million lives, out of which over 17 million lives are through
micro and byte size products
Business
continues to build scale with focus on expenses, leading to improvement in
combined ratio at 109% vs. 154% in the previous year
The Net
loss has reduced to Rs 71 crore, against Rs 128 crore in the previous year
General
Insurance broking profit before tax grew 21% year on year, to Rs 45 crore
Stock
and Securities broking business profit before tax grew 42% year on year, to Rs
11 crore
Stressed
assets platform profit before tax grew 87% year on year, to Rs 17 crore
Other businesses:
Profit
before tax for the other financial services businesses under ABC grew 41% year
on year, to Rs 75 crore, from Rs 53 crore in the previous year
Going forward:
Leveraging
synergies across platform including ABG/ABC ecosystem
Leveraging
technology and analytics to grow revenue, improve customer experience, optimise
costs, and build robust and scalable business model
To
accelerate growth momentum across business to build scale
Focus on
customer acquisition engines, including direct channels across businesses
Deepening penetration with increased
geographic presence
Ajay Srinivasan, Chief Executive, Aditya Birla Capital Limited,
said “The Company has built an integrated platform with high quality,
significant scale and a retail franchise of 35 million active customers. We
have tripled our profits over the last 5 years and nearly doubled our profit
over the last two years, in spite of the several external challenges. Our
integrated and diversified model backed by our motivated teams have helped us
deliver consistent growth in profitability across economic cycles and record
results this fiscal. The Company is well placed to capitalise on its strong
franchise and the future opportunities in the financial services space”
Financial Performance FY2022
For the year ended March 2022 (FY2022), the
consolidated net revenue of the company increased 15% to Rs 22052.72 crore. The
revenue in NBFC segment moved up 4% to Rs 5784.86 crore, Housing Finance 187%
to Rs 1215.16 crore and Life Insurance 41% to Rs 12386.47 crore. Further, the
revenues from Asset Management increased 21% to Rs 1405.85 crore, General
Insurance Broking 21% to Rs 691.40 crore and Stock & Securities Broking 19%
to Rs 233.44 crore. The revenue from Health Insurance gained 17% to Rs 1633.16
crore, while Other Financial Services revenues declined 7% to Rs 329.26 crore
in FY2022 over FY2021.
The interest cost declined 11% to Rs 3479.53
crore, while depreciation moved up 7% to Rs 121.91 crore. PBT jumped 38% to Rs
1768.63 crore in FY2022. The effective tax rate declined to 32.20% in FY2022
from 34.45% in FY2021. Net Profit after non-controlling interest moved up 51%
yoy record high of Rs 1705.97 crore in FY2022.
|
Aditya Birla Capital:
Consolidated Results
|
|
Particulars
|
2206 (3)
|
2106 (3)
|
Var %
|
2203 (12)
|
2103 (12)
|
Var %
|
|
Income from Operations
|
5590.28
|
4298.99
|
30
|
22052.72
|
19254.27
|
15
|
|
OPM (%)
|
26.88
|
27.90
|
|
24.30
|
27.46
|
|
|
OP
|
1502.40
|
1199.59
|
25
|
5358.63
|
5287.98
|
1
|
|
Other Income
|
8.76
|
2.95
|
197
|
11.44
|
19.51
|
-41
|
|
PBDIT
|
1511.16
|
1202.54
|
26
|
5370.07
|
5307.49
|
1
|
|
Interest (Net)
|
916.98
|
856.50
|
7
|
3479.53
|
3915.76
|
-11
|
|
PBDT
|
594.18
|
346.04
|
72
|
1890.54
|
1391.73
|
36
|
|
Depreciation /
Amortization
|
32.27
|
28.03
|
15
|
121.91
|
114.45
|
7
|
|
PBT before EO
|
561.91
|
318.01
|
77
|
1768.63
|
1277.28
|
38
|
|
EO
|
0.00
|
0.00
|
-
|
177.19
|
0.00
|
-
|
|
PBT after EO
|
561.91
|
318.01
|
77
|
1945.82
|
1277.28
|
52
|
|
Tax Expenses
|
189.86
|
127.28
|
49
|
626.65
|
440.04
|
42
|
|
PAT
|
372.05
|
190.73
|
95
|
1319.17
|
837.24
|
58
|
|
Profit attributable to
non-controlling interest
|
-5.65
|
-31.69
|
-82
|
-45.90
|
-20.89
|
120
|
|
Share of profit/loss
of Associate
|
51.77
|
79.61
|
-35
|
340.90
|
268.41
|
27
|
|
Net Profit after
minority and share in associate
|
429.47
|
302.03
|
42
|
1705.97
|
1126.54
|
51
|
|
EPS *
|
7.1
|
5.0
|
|
6.6
|
4.7
|
|
|
Adj BV (Rs)
|
60.3
|
54.0
|
|
58.7
|
52.7
|
|
|
* Annualized on
current equity of Rs 2416.51 crore excluding EO and relevant tax. Face Value:
Rs 10, Figures in Rs crore, PL: Profit to Loss, LP: Loss to Profit
|
|
Source: Capitaline
Corporate Database
|
|
Aditya Birla Capital:
Segment Results
|
|
Particulars
|
(%) of Total
|
2206 (3)
|
2106 (3)
|
Var (%)
|
(%) of Total
|
2203 (12)
|
2103 (12)
|
Var (%)
|
|
Segment Revenue
|
|
|
|
|
|
|
|
|
|
NBFC
|
27
|
1612.05
|
1380.75
|
17
|
24
|
5784.86
|
5518.00
|
5
|
|
Housing Finance
|
5
|
312.88
|
307.09
|
2
|
5
|
1215.16
|
1280.56
|
-5
|
|
Life Insurance
|
47
|
2788.60
|
2038.20
|
37
|
52
|
12386.47
|
10379.28
|
19
|
|
Asset Management
|
5
|
269.28
|
333.24
|
-19
|
6
|
1405.85
|
1201.65
|
17
|
|
General Insurance
Broking
|
3
|
190.43
|
147.33
|
29
|
3
|
691.40
|
591.28
|
17
|
|
Stock & Securities
Broking
|
1
|
62.86
|
53.41
|
18
|
1
|
233.44
|
192.22
|
21
|
|
Health Insurance
|
10
|
594.59
|
350.07
|
70
|
7
|
1633.16
|
1202.08
|
36
|
|
Other Financial
Services
|
1
|
40.34
|
30.42
|
33
|
1
|
329.26
|
128.74
|
156
|
|
Total Segmental
Revenue
|
100
|
5871.03
|
4640.51
|
27
|
100
|
23679.60
|
20493.81
|
16
|
|
Less: Inter Segment
Revenue
|
|
-12.29
|
-8.72
|
41
|
|
46.74
|
40.49
|
15
|
|
Total Segment Revenue
from Operations (Net)
|
100
|
5858.74
|
4631.79
|
26
|
|
23632.86
|
20453.32
|
16
|
|
Segment Results
(Profit Before Tax)
|
|
|
|
|
|
|
|
|
|
NBFC
|
65
|
458.52
|
314.75
|
46
|
52
|
1487.12
|
1031.41
|
44
|
|
Housing Finance
|
10
|
71.62
|
49.46
|
45
|
9
|
253.25
|
176.38
|
44
|
|
Life Insurance
|
5
|
33.46
|
31.08
|
8
|
6
|
174.85
|
151.46
|
15
|
|
Asset Management
|
20
|
140.80
|
205.89
|
-32
|
31
|
894.71
|
695.89
|
29
|
|
General Insurance
Broking
|
6
|
44.65
|
36.99
|
21
|
3
|
86.02
|
70.70
|
22
|
|
Stock & Securities
Broking
|
2
|
11.24
|
7.90
|
42
|
1
|
35.68
|
22.40
|
59
|
|
Health Insurance
|
-10
|
-69.96
|
-126.58
|
-45
|
-11
|
-308.68
|
-199.05
|
55
|
|
Other Financial
Services
|
2
|
13.06
|
5.57
|
134
|
8
|
219.76
|
24.04
|
814
|
|
Total Segment Results
|
100
|
703.39
|
525.06
|
34
|
100
|
2842.71
|
1973.23
|
44
|
|
Capital employed
|
|
|
|
|
|
|
|
|
|
NBFC
|
52
|
9685.90
|
8646.10
|
12
|
51
|
9338.07
|
8417.16
|
11
|
|
Housing Finance
|
9
|
1726.92
|
1515.95
|
14
|
9
|
1665.05
|
1478.96
|
13
|
|
Life Insurance
|
15
|
2827.27
|
2862.97
|
-1
|
16
|
2936.75
|
2868.04
|
2
|
|
Asset Management
|
12
|
2299.95
|
1821.28
|
26
|
12
|
2189.58
|
1710.86
|
28
|
|
General Insurance
Broking
|
1
|
104.46
|
86.12
|
21
|
0
|
71.68
|
55.80
|
28
|
|
Stock & Securities
Broking
|
1
|
255.29
|
230.88
|
11
|
1
|
246.10
|
224.07
|
10
|
|
Health Insurance
|
4
|
705.45
|
425.24
|
66
|
3
|
535.99
|
428.67
|
25
|
|
Other Financial
Services
|
4
|
709.93
|
630.85
|
13
|
5
|
843.80
|
657.96
|
28
|
|
Total Segment
|
98
|
18315.17
|
16219.39
|
13
|
98
|
17827.02
|
15841.52
|
13
|
|
Inter-Segment
Elimination
|
0
|
0.00
|
0.00
|
-
|
0
|
0.00
|
0.00
|
-
|
|
Add: Unallocated
Corporate
|
2
|
362.49
|
219.71
|
65
|
2
|
371.17
|
231.03
|
61
|
|
Total
|
100
|
18677.66
|
16439.10
|
14
|
100
|
18198.19
|
16072.55
|
13
|
|
Figures in Rs crore,
PL: Profit to Loss; LP Loss to Profit
|
|
Source: Capitaline
Corporate Database
|
|