Tuesday, August 16, 2022

Aditya Birla Capital’s net profit up 42% to ₹429 crore

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Aditya Birla Capital Ltd’s consolidated net profit rose 42 percent year-over-year to Rs 429 crore thanks to strong performance across all companies. The company’s consolidated revenue grew 26 percent year-on-year to Rs 5,859 crore.



Through its subsidiaries, the company maintains its track record of delivering strong performance during market and macroeconomic cycles, with its diversified business model.

NBFC and home financing:

The company’s total loan portfolio increased 22 percent year-on-year to Rs 69,887 crore, with a strong retail focus, with a total active customer base of more than 4.8 million.

The NBFC loan portfolio grew 26 percent year-on-year to Rs 57,839 crore, while Retail, SMB and

HNI’s loan portfolio grew 39 percent year over year, making its total book contribution the highest ever at 64 percent on June 22, compared to 58 percent in the previous year. Gross payouts increased 3.1 times than last year to Rs 8,039 crore in the reporting quarter.

While the loan portfolio of home financing grew 7 percent year-on-year to Rs 12,049 Crore, with a retail mix of 94 percent. Gross payout remains strong at Rs 867 Crore in Q1 FY22; in line with the business focus. The affordable housing segment contributed 48 percent to the payouts.

Mutual funds:

The company’s investment funds also showed strong growth in the past quarter. The quarterly average of assets under management was Rs 2.82 lakh crore as on June 30, with a quarterly average of domestic equity up 14 percent to Rs 1.17 lakh crore.

The monthly systematic inflow was Rs 898 crore in June 2022. Nearly 2.77 lakhs of new SIP accounts were registered in the first quarter of the fiscal year, growing at about 23 percent year-on-year.

Insurance companies:

Total gross written premium of life and health insurance grew 53 percent year-on-year to Rs 3,250 crore in Q1FY23.

In life insurance, the individual premium for the first year grew 26 percent year-on-year to Rs 409 crore and the renewal premium increased 18 percent year-on-year to Rs 1,285 crore, of which 74 percent was collected digitally.

While the gross written premium of health insurance grew by 71 percent year-on-year to Rs 630 crore with retail and rural areas contributing 59 percent of the total revenue. The net loss has resulted in Rs 71 crore, up from Rs 128 crore in the previous year.

Way ahead:

Going forward, the company is expected to use technology and analytics to increase revenue, improve customer experience, optimize costs and build a robust and scalable business model.

The company’s focus will be on customer acquisition through direct channels between companies and increasing their geographic presence.

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