Mumbai, 4th, Feb 2022: Aditya Birla Capital Limited (“The Company”) announced its unaudited financial results for the quarter and nine months ended 31st December 2021.
The Consolidated1 Revenue of the Company for Q3 FY22 grew 13% year on year to Rs. 6,054 Crore. The consolidated profit after tax (after minority interest) doubled year on year, to Rs. 577 Crore, the highest level ever recorded by the Company. The reported consolidated PAT includes a net gain of Rs. 161 Crore from the sale of ~ 1% stake in the AMC business, through its IPO in October 2021.
The Company’s focus on building scale, growing its retail base and delivering consistent profitability, continues to yield results. The realisation strategy has led to the active customer base growing to ~ 31 million, a 46% year on year growth. The scale is evidenced with overall AUM across asset management, life insurance and health insurance businesses, growing 16% year on year, to over Rs. 3,72,423 Crore. The overall lending book (NBFC and Housing Finance) grew 7% year on year, to Rs. 61,411 Crore, making it a lending portfolio of scale. The gross premium (across Life and Health Insurance) for the nine months grew 24% year on year, to Rs. 9,236 Crore, reflecting the scale in insurance businesses.
The Q3 FY22 performance highlights of the key subsidiaries of Aditya Birla Capital Limited are:
Lending:
• Overall lending book (NBFC and Housing) grew 7% year on year, to Rs. 61,411 Crore
• Strong funding access and amongst the best cost of borrowing in the industry
• Raised over Rs. 7,300 Crore of long-term funds in YTD FY22
• Strong focus on realisation with a total customer base of over 2.3 million
• Retail, SME and HNI segments now account for 67% of the total lending book
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 financial table includes revenues from these two businesses on a 100% basis to show holistic financial performance
NBFC business:
- Overall loan book grew to Rs. 49,805 Crore, reflecting a 9% year on year growth; the Retail, SME and HNI loan book grew 24% year on year, leading to its contribution in the overall book is the highest ever at 60% in December ’21, vis-à-vis 53% in the previous year
- Strong momentum in gross disbursement at Rs. 6,622 Crore in Q3 FY22, grew 55% year on year and 34% quarter on quarter; Retail, SME and HNI contributed 69% of Q3 FY22 gross disbursement
- Highest ever net interest margin at 6.24%, expanding by 100 bps year on year, led by growth in retail and SME segments and lower cost of borrowing
- Profit before tax at Rs. 385 Crore, reflecting a growth of 48%, year on year
- Strong growth in return on assets at 2.3%, compared to 1.7% a year ago
Housing Finance business:
- Loan book at Rs.11,606 Crore, with 95% retail mix
- Rebound in gross disbursal in Q3 at Rs. 1,095 Crore, with a year on year growth of 34%; the affordable housing segment contributed 50% of disbursements
- Affordable housing book mix at 35%, against 23% in the previous year
- Net interest margin at 4.21%, expanded by 75 bps, year on year
- Profit before tax at Rs. 68 Crore, a growth of 42% over the previous year
- Strong return on assets at 1.8%, compared to 1.3% in the previous year
Asset Management:
• Strong growth in assets under management with AAUM at Rs. 3,10,860 Crore AUM, growing by 16% year on year
• Overall domestic average assets under management (AAUM) grew by 17% year on year, to Rs. 2,98,763 Crore and domestic equity AAUM grew by 39% year on year, to Rs. 1,21,962 Crore
• Domestic equity mix expanded to 41% of AUM, compared to 34% in the previous year with continued growth in SIP flows and folios (SIP monthly book at Rs. 892 Crore)
• Continued focus on building retail customer franchise with 7.6 million folios; added ~ one million folios in YTD FY22
• Individual AUM grew 15% year on year, to Rs. 1,41,432 Crore; Individual mix at 48% of total AUM
• Profit before tax at Rs. 249 Crore, reflecting a 28% year on year growth
• PBT/AUM moved up to 33.1 bps, from 30.1 bps in the previous year
Insurance:
• Total gross written premium of life insurance and health insurance grew 24% year on year, to Rs. 9,236 Crore, in YTD FY22
Life Insurance business:
- Individual First Year Premium (FYP) for Q3 FY22 grew 16% year on year to Rs. 575 Crore
- Group business for Q3 FY22 grew 16% year on year, to Rs. 848 Crore, ahead of industry growth of 7%
- Renewal premium grew 27% year on year, to Rs. 4,258 Crore in YTD FY22, out of which 74% has been collected digitally; total premium up 23% year on year to 8,066 Crore
- Consistent improvement in 13th month persistency to 84%
- Net VNB margin for Q3 FY22 expanded by 449 bps, year on year, to 16.8%
- Profit before tax for Q3 FY22 grew 12% year on year, to Rs. 40 Crore
Health Insurance business:
- Gross written premium for Q3 FY22 at Rs. 406 Crore; grew 31% year on year, with retail contributing 65% of total business
- Business now covering 17 million lives, out of which over 13 million lives are through micro and byte size products
- Business continues to build scale with focus on expenses, leading to improvement in combined ratio (normalized for COVID claims), at 113% vis-à-vis 115% in previous year
- Robust digital enablement with 97% policies issued digitally
Other businesses:
- • Profit before tax for the other businesses for Q3 FY22 grew 26% year on year, to Rs. 46 Crore, from Rs. 36 Crore in the previous year
- General Insurance broking profit before tax for Q3 FY22 at Rs. 16 Crore
- ARC platform AUM was at Rs. 2,114 Crore and profit before tax for Q3 FY22 grew 43% year on year, to Rs. 16 Crore
- Stock and Securities broking business profit before tax for Q3 FY22 grew 53% year on year, to Rs. 9 Crore
Going forward:
• Focus on maximising the value of active customer base of 31 million while looking to continue to drive customer acquisition at scale
• Leveraging technology and analytics to grow revenue per customer, improve customer experience, optimise costs, and build robust and scalable systems
• Delivery of target growth and profitability across businesses
