Aditya Birla Capital PAT rises 44% backed by robust growth across business

The consolidated net profit of Aditya Birla Capital recorded a 44 per cent growth to Rs 705 crore in the second quarter of FY24 from Rs 488 crore in the year-ago period, supported by healthy growth in revenue across businesses.

The revenue of the company rose by 22 per cent to Rs 8,831 crore in the July-September quarter of FY24 from Rs 7,215 crore of the corresponding previous quarter.

The strong momentum across businesses led to a 41 per cent year-on-year growth in the Non-Banking Finance Companies (NBFC) and Housing Finance Companies (HFC) to Rs 1,08,961 crore as on September 30, 2023, compared to the year-ago period when it was pegged at Rs 77,430 crore.

The total Assets Under Management (AUM) (Asset Management Companies, life insurance, and health insurance) of the business grew by 12 per cent year-on-year (Y-o-Y) to Rs 4,04,354 crore.

During the quarter under review, the Net Interest Income (NII) of the NBFC business increased to Rs 1,520 crore from Rs 1,017 crore of the year-ago period. The Net Interest Margin (NIM) expanded to 6.87 per cent from 6.58 per cent in Q2 FY24. Disbursements grew by Rs 16,477 crore, 32 per cent higher than Rs 12,488 crore from the year-ago period.

The Housing Finance (HFC) arm posted a 52 per cent growth in disbursements at Rs 1,882 crore from Rs 1,237 crore. The loan book grew by 23 per cent to Rs 15,439 crore from Rs 12,455 crore in the year-ago period.

The company has increased their branches to 1,403 branches across all businesses as of September 30, 2023.

The company’s branch expansion is targeted at driving penetration into Tier-III and Tier-IV towns and new customer segments.

The key profitability margin of the – Value of New Business (VNB) Premium – of Aditya Birla Life Insurance inched up to 14.2 per cent in the first half of FY24 from 12.3 per cent in the year-ago period. The individual net premium income surged by 13 per cent to Rs 1,189 crore from Rs 1,561 crore across the time period. The life insurance business saw nearly an 80 per cent surge in renewals digitally. Whereas, nearly 85 per cent of the business of health insurance was delivered through auto-underwriting, indicating a ‘Digital First Approach’ for product innovation, direct acquisition, seamless onboarding, and service delivery.

The mutual fund business – Aditya Birla Asset Management Company saw an increase in Systematic Investment Plans (SIP) to Rs 968 crore, 4 per cent up from Rs 931 crore in the year-ago period.

In its press release, the company said that it continues to see a robust response to its comprehensive Business-to-Business (B2B) platform for the Micro, Small, and Medium Enterprises (MSME) ecosystem, Udyog Plus, with more than 164,000 registrations as of September 30, 2023. It offers a paperless digital journey for business loans and loan disbursement of up to Rs 10 lakh.

The company has integrated Udyog Plus with the Aditya Birla Group ecosystem to provide channel financing to dealers. Udyog Plus has reached a monthly disbursement run rate of Rs Rs 50 crore with the Aditya Birla Group ecosystem contributing two-thirds of the business, the statement added.