Aditya Birla Capital Q2FY25 results: Net profit up 42% to Rs 1,001 crore

The company is focused on capturing white spaces and driving penetration into Tier-III and Tier-IV towns and new customer segments

Aditya Birla Capital on Wednesday reported 42 per cent year-on-year (YoY) growth in consolidated net profit to 1,001 crore in July-September quarter of financial year 2025 (Q2FY25) from Rs 705 crore in Q2FY24.

 

The growth includes a one-off gain of Rs 167 crore accrued from stake sale in Aditya Birla Insurance Brokers.

 

In August 2024, the company informed the exchanges that it has concluded the 50 per cent sale of its stake in the broking arm to Edme Services Private Ltd, a part of Samara Capital Group and an affiliate of Samara Alternate Investment Fund.

 

Excluding the one-off item, the company recorded 18.3 per cent growth in profit to Rs 834 crore in the reported quarter on the back of healthy growth in revenue. The consolidated revenue grew by 36 per cent YoY to Rs 12,007 crore in Q2 FY25.

 

 

The overall lending portfolio of the non-banking financial company (NBFC) and housing finance company (HFC) combined grew by 27 per cent YoY and 8 per cent sequentially to Rs 1.38 trillion as on September 30, 2024.The total assets under management (AUM) of the asset management company (AMC), life insurance and health insurance grew by 24 per cent YoY to Rs 5.01 trillion as on September 30, 2024. The total premium of life insurance and health insurance business grew by 29 per cent YoY to Rs 10,828 crore in H1 FY25. 

 

Disbursements of the NBFC rose by 17 per cent YoY to Rs 19,322 crore in Q2 FY25. Loans to retail, SME and HNI customers accounted for 65 per cent of the total loan portfolio. Credit costs improved by 18 basis points sequentially from 1.43 per cent to 1.25 per cent.

 

During the post earnings analyst meet, Vishakha Mulye, chief executive officer (CEO), Aditya Birla Capital said, “In personal loan businesses, we are focused on increasing our sourcing from direct channels, such as branches, and the newly launched ABCD app, and we expect the growth in personal loans to normalise in the next two quarters. We remain confident of growing the overall NBFC portfolio by a CAGR of 25 per cent over the next 2-3 years.”

 

The company has a pan-India presence of 1,470 branches across all businesses as of September 30, 2024. It is focused on capturing white spaces and driving penetration into Tier-3 and tier 4 towns and new customer segments.

 

The disbursements of Aditya Birla Housing Finance Company grew by 113 per cent YoY to Rs 4,010 crore in Q2 FY25.

 

The Individual First Year premium income of the life insurance business increased by 44.2 per cent in Q2 FY25 to Rs 745 crore. The Gross Written Premium (GWP) grew by 43.2 per cent to Rs 1,130 crore in the quarter ended September 30, 2024.

 

The combined ratio of Aditya Birla Health Insurance Company dropped to 113 per cent in H1 FY25 from 119 per cent in H1 FY24.