Aditya Birla Capital reports results for the quarter ended 30th June, 2020.
Resilience across businesses despite lockdown, with focus on balanced growth, liquidity, technology enhanced processes and cost control
91% of overall Aditya Birla Capital branches operational with strict health protocols
Consolidated Net Profit at Rs.198 Crore (grew 1.4 times over previous quarter)
Consolidated Revenue: Rs.4,293 Crore (grew 9% year on year)
(Rs. in crores)
Particulars Quarter 1 FY 20 Quarter 4 FY 20 Quarter 1 FY 21
Revenue1 3,943 5,094 4,293
Profit after Tax (after minority interest) 270 144 198
Mumbai: Aditya Birla Capital Limited ('The Company') announced its unaudited financial results for the quarter ended 30th June 2020.
The Consolidated Revenue of the Company grew 9 per cent year on year to Rs.4,293 Crore. The Company, through its subsidiaries, continued its consistent delivery of profit through its diversified business model. The consolidated profit after tax (after minority interest) grew 1.4 times over Q4 FY20 to Rs.198 Crore, marked by resilience across businesses. This is after providing an additional Rs.62 Crore as COVID provisions in its lending businesses in Q1 FY21.
With 91 per cent of its branches operational with strict health protocols, the company looked to normalise its operations through Q1 FY21. The Company will continue to monitor developments in the market as lockdowns get lifted. Aggregated2 operating expenses (excluding volume linked and Health Insurance business) have reduced 10 per cent over the last quarter.
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 includes revenues from these two businesses on a 100% basis to show holistic financial performance
2 Excluding Aditya Birla Health Insurance operating expenses given the business is scaling up and on path to break-even
The performance highlights of the key subsidiaries of Aditya Birla Capital Ltd. were:
Overall lending book (NBFC and Housing Finance) stood at Rs.58,073 Crore
Maintained Core operating profit in NBFC and Housing Finance despite slow recovery under lockdown
Lending book is backed by well-matched asset and liability mix with adequate liquidity
Raised over Rs.1,500 Crore of long-term funds during the quarter
Continue to have strong focus on quality of book with reduced ticket sizes across the board
Loan book at Rs.45,939 Crore; restarted lending with caution during the quarter with gradual ramp up of activity, currently 100 per cent branches operational
Maintained Core operating profit with pre- provision operating profit at Rs.392 Crore, during the quarter
Additional COVID related provisions of Rs.50 Crore in Q1 FY21
Cost to income ratio reduced by 223 bps from 33.5 per cent in Q4 FY20 to 31.3 per cent in Q1 FY21
The Net profit after tax stood at Rs.140 Crore vis-a-vis Rs.137 Crore in previous quarter
Housing Finance business
Loan book at Rs.12,134 Crore, with 96 per cent retail
Net interest margins expanded by 29 bps to 3.27 per cent over previous year
Maintained core operating profit with pre provision operating profit at Rs.52 Crore
Additional COVID related provisions of Rs.12 Crore in Q1 FY21
Strong drive towards technology deployment to drive sales and customer engagement with 85 per cent of sourcing digital in July '20
The Net profit after tax for the quarter stood at Rs.28 Crore vis-a-vis Rs.21 Crore in Q4 FY20 and Rs.27 Crore in Q1 FY20
Overall closing assets under management grew by 8 per cent to Rs.2,17,643 Crore from March 20 to June 20
Closing equity AUM grew by 19 per cent to Rs.78,017 Crore from March 20 to June 20
Keeping its continued focus on building retail customer franchise, the retail AAUM grew by 12 per cent over the last quarter; while the SIP AUM increased by 27 per cent, quarter on quarter
Maintained profitability with Profit before tax/AAUM at 24 bps vis-a-vis 22 bps in Q4 FY20
Digital transactions account for 94 per cent of overall transactions as compared to 81 per cent in previous quarter
Total gross premium of life insurance and health insurance grew 38 per cent year on year to Rs.1,936 Crore.
Life Insurance business
Individual First Year Premium (FYP) grew 5 per cent year on year to Rs.309 Crore, significantly ahead of industry year on year degrowth of 23 per cent
Consistent improvement in quality with 13th month persistency by 200 bps, year on year, to 81 per cent, from 79 per cent
Strong focus on digital with 96 per cent individual business sourced digitally
Maintained gross margin at 33.1 per cent despite falling interest rate scenario
Sharp reduction in Opex to premium ratio, year on year, from 23.1 per cent to 16.3 per cent
Health Insurance business
Gross written premium at Rs.246 Crore; grew 72 per cent over the previous year, ahead of industry growth of 16 per cent for Stand Alone Health Insurers, with Retail business contributing 73 per cent
Covering 8.9 million lives out of which over 5 million lives covered through micro and byte size products
Business continues to build scale with significant improvement in combined ratio at 132 per cent vs. 146 per cent in the previous year
Robust digital enablement with 98 per cent digital issuance in Q1 FY21 vs. 93 per cent in FY20 and digital renewals at 92 per cent vs. 65 per cent in previous year
Profit before tax grew 64 per cent year on year to Rs.41 Crore from Rs.25 Crore
General Insurance broking profit before tax grew 20 per cent year on year to Rs.29 Crore driven by technology adoption
ARC platform continues to scale up with AUM at Rs.2,500+ Crore
Aditya Birla Capital has a diversified portfolio of businesses catering to the lifetime money needs of its customers. This diversification also allows the company to capture opportunities in different segments of the market and deliver consistent growth.
About Aditya Birla Capital Ltd.
Aditya Birla Capital Limited (ABCL) is the holding company for the financial services businesses of the Aditya Birla Group. With subsidiaries that have a strong presence across Protecting, Investing and Financing solutions, ABCL is a financial solutions group that caters to diverse needs of its customers across their life cycle. Powered with more than 21,000 employees, the subsidiaries of ABCL have a nationwide reach with 850+ branches and more than 2,00,000 agents/channel partners and several bank partners.
Aditya Birla Capital is a part of the Aditya Birla Group, a USD 48.3 billion Indian multinational, in the league of Fortune 500. Anchored by an extraordinary force of over 120,000 employees, belonging to 42 nationalities, the Aditya Birla Group operates in 36 countries across the globe.
Disclaimer: Certain statements in this 'Media Release' may not be based on historical information or facts and may be 'forward looking statements' within the meaning of applicable securities laws and regulations, including, but not limited to, those relating to general business plans & strategy of the Company, its future outlook & growth prospects, future developments in its businesses, its competitive & regulatory environment and management's current views & assumptions which may not remain constant due to risks and uncertainties. Actual results could differ materially from those expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any statement, on the basis of any subsequent development, information or events, or otherwise. This 'Press Release' does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of the Company's shares. The financial figures in this 'Press Release' have been rounded off to the nearest Rs.one Crore. The financial results are consolidated financials unless otherwise specified.
Aditya Birla Capital Limited
Corporate Identity Number L67120GJ2007PLC058890
Regd. Office: Indian Rayon Compound, Veraval 362 266 (Gujarat)
Corporate Office: One Indiabulls Centre, Tower 1, 18th Floor, Jupiter Mills Compound,
841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013
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