Aditya Birla Financial Services Group (ABFSG) sustained its pace of growth across all its verticals in the year ended March 31, 2011, reporting consolidated revenue of Rs. 6,296 Crore, up 7% from the previous year.
The operating Profit before Tax grew to Rs. 472 Crore as against a loss of Rs. 309 Crore in the previous year. Profit before Tax after one-time exceptional expenses was Rs. 368 Crore.
Ajay Srinivasan, Chief Executive – Financial Services, Aditya Birla Group, said, “The results underline the value of our focus on balanced and sustained growth. In a year characterized by sweeping industry wide changes, the business has turned in robust revenues and profits. Much of this is due to our efforts towards product innovation, disciplined investments and our commitment towards taking an integrated approach to the clients growing needs.
The year 2010-11 marked a number of milestones in our journey, specifically the maiden profits recorded by our life insurance business, continued growth of our asset management arm and widening of our geographical footprint with the setting up of offices abroad. The current year will see us scale efforts to further improve distribution, capital efficiency and profitability.”
Following are some of the highlights of 2010-11, by business:
Birla Sun Life Insurance
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• Recorded a Profit before Tax of Rs. 305 Crore against a loss of Rs. 435 Crore last year. These profits are primarily driven by in-force business, declining expense ratios, changes in product structures and lower new business strain
• While the total premium revenue amounted to Rs. 5,677 Crore, up 3%, the renewal premium of Rs. 3,597 Crore saw a robust growth of 41% over the previous year
• New business premium at Rs. 2,080 Crore, was lower by 30% in line with the industry trend for the year
• AUM grew by 23% to Rs.19,760 Crore, with all funds consistently outperforming benchmarks and delivering superior investment performance
• New product launches have been successful. For the full year, BSLI launched 7 traditional products and 8 unit-linked products. Post the new regulations, the company managed to swiftly change its product mix to its advantage with more than 40% of sales in the second half coming from traditional products
• Going ahead, BSLI will look to increasing market share while building a profitable book with a strong focus on distribution efficiency, persistency, expense management and service
Birla Sun Life Mutual Fund
• Amid a marginal decline in industry AAUM, BSLAMC was one of the few AMCs to see growth
• Market share rose to 9.1% from 8.3% in the previous year
• While the industry saw significant equity outflows, Birla Sun Life Mutual Fund emerged as one of the few AMCs to see a positive flow, clocking Rs. 266 Crore in equity net sales
• Equity AUM on YoY basis recorded 5% growth, being the 3rd highest among top 10 players against an industry decline of 1.59% during same period
• FY 11 PBT at Rs. 126 Crore registered a growth of 74% over previous FY
Aditya Birla Insurance Brokers
• Operational income was Rs. 21 Crore, reflecting an increase of 3% over the previous year
• Profit before tax was Rs. 3 Crore
Aditya Birla Finance
• Revenue increased to Rs. 165 Crore as against Rs. 73 Crore, more than double YoY
• The total book size stood at Rs. 1,800 Crore, more than double YoY
• Profit before Tax was Rs. 55 Crore, 21% more than the previous year
Aditya Birla Money Mart
• Ranked as the 2nd largest corporate distributor in terms of Assets Under Advice (AUA), as on 31st March, 2011 (Source: CAMS report)
• The business registered a revenue growth of 17% during the year
Aditya Birla Money
• Consolidated topline for the financial year stood at Rs. 114 Crore as compared to Rs. 113 Crore last year
• A total of 26 new branches were set up in strategic locations, taking total point of presence including franchisees to 934
• Commodity volumes have recorded a growth of 114% in Q4 2010-11 as compared to Q4 2009-10
Aditya Birla Private Equity
• Drawn down 40% of corpus and invested in 4 companies out of Fund I which had raised Rs. 881 Crore
• Launched a second fund – the Sunrise Fund – for early stage investments in sunrise sectors and expect first closing in July 2011