Table of Content
Introduction
Aditya Birla Capital Ltd. (ABCL), a part of the Aditya Birla Group, was originally incorporated in 2007. It was originally named Aditya Birla Financial Services Private Limited, and in 2014, the company went public and was renamed Aditya Birla Financial Services Limited. Finally, in 2017, the company was rechristened as Aditya Birla Capital Ltd., and today, it has cemented its legacy as one of the largest financial services entities in the country. As of June 30, 2023, the company manages an aggregate AUM of around ₹3.9 lakh Cr, with a consolidated lending book of more than ₹1 lakh Cr via its joint ventures and subsidiaries.
ABCL announced its quarterly results for Q2 FY24 on November 3, 2023, with the consolidated revenue growing by 22% YoY. Here are the key facts and figures from an exchange filing.
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Key Financial Metrics
Performance Highlights (Consolidated)
- The company’s overall lending portfolio (NBFC and HFC) rose 41% YoY to ₹1.09 lakh Cr during the period under review.
- ABCL’s mutual fund quarterly average AUM increased by 10% YoY to ₹3,10,899 Cr.
- Gross written premium (GWP) of health insurance grew by 23% YoY to ₹1,561 Cr during the first six months of the fiscal year.
- The company’s consolidated revenue* surged 22% YoY to ₹8,831 Cr during the second quarter.
- The quarterly consolidated profit before tax (PBT) increased by 46% YoY and crossed ₹1,000 Cr in Q2 FY24.
- The company’s consolidated profit after tax (PAT) also showed a growth of 44% YoY to ₹705 Cr for the quarter under review.
For the period under review, ABCL’s consolidated revenue* rose 22% YoY to ₹8,831 Cr, the company said in its press release. The consolidated profit after tax (PAT) also increased by 44% YoY to ₹705 Cr.
The total assets under management (AMC, life insurance, and health insurance) rose 12% YoY to ₹4,04,354 Cr during the second quarter of the fiscal year.
According to a regulatory filing, the company reported a 41% YoY and 8% QoQ increase in the overall lending portfolio (NBFC and HFC) to ₹1,08,961 Cr in Q2 FY24.
* Segmental Revenue: Aditya Birla Sun Life AMC Ltd., Aditya Birla Wellness Pvt. Ltd and Aditya Birla Health Insurance Ltd. (from October 21, 2022) consolidated based on equity accounting under Ind AS. Consolidated Revenue includes revenues from these businesses on a 100% basis to show holistic financial performance
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Performance Highlights (Segment-wise)
NBFC Business for Q2 FY24
- The revenue from the NBFC business stood at ₹3,0152.13 Cr, up from ₹1,847.19 Cr during the same period last year.
- The segment’s profit before tax (PBT) rose 51% YoY and 7% QoQ to ₹736.04 Cr.
- The net interest margin (NIM) increased by 16 bps YoY to 6.87%.
- The segment loan portfolio rose 44% YoY and 9% QoQ to ₹93,522 Cr.
Housing Finance Business for Q2 FY24
- The revenue from the Housing Finance business increased to ₹450.18 Cr from ₹343.70 Cr in the corresponding period last year.
- Disbursements rose 52% YoY to ₹1,882 Cr.
- The segment’s profit before tax (PBT) increased by 28% YoY to ₹96.94 Cr.
- Return on assets grew by 9 bps YoY to 2.03%.
- The segment’s loan book increased by 23% YoY and 6% QoQ to ₹15,439 Cr.
Life Insurance Business for H1 FY24
- The revenue from the life insurance segment stood at ₹7,503.27, up from ₹6,534.11 Cr in the same period last year.
- The segment’s profit before tax (PBT) fell to ₹62.40 Cr during H1 FY24 from ₹89.15 Cr reported during H1 FY23.
- The individual First Year Premium (FYP) rose 13% YoY to ₹1,189 Cr.
- The segment’s renewal premium increased by 19% YoY to ₹3,521 Cr.
- The net VNB margin expanded by around 195 basis points YoY to 14.2%.
Health Insurance Business for H1 FY24
- The revenue for H1 FY24 in the health insurance segment stood at ₹1,454.09 Cr, up from ₹1,203.91 Cr during the first half of FY23.
- The net loss decreased to ₹140 Cr during the first half of the fiscal year from ₹149 Cr reported during H1 FY23.
- The gross written premium (GWP) increased by 23% YoY to ₹1,561 Cr.
- The combined ratio stood at 119%.
Aditya Birla Capital Limited: H1 Consolidated Financial Figures (YoY)
| Particulars | H1 FY 2022-23 | H1 FY 2023-24 |
| Total Revenue from Operations | ₹12,423.50 Cr | ₹14,765.52 Cr |
| Total Income | ₹12,432.14 Cr | ₹14,781.97 Cr |
| Total Expenses | ₹11,276.93 Cr | ₹12,977.31 Cr |
| Profit Before Tax | ₹1,304.08 Cr | ₹1,920.45 Cr |
| Profit for the Period (Attributable to Owners of the Company) | ₹917.72 Cr | ₹1,353.81 Cr |
| Total Comprehensive Income | ₹786.14 Cr | ₹1,429.09 Cr |
Aditya Birla Capital Limited: Consolidated Financial Figures (QoQ)
| Particulars | Q1 FY 2023-24 | Q2 FY 2023-24 |
| Total Revenue from Operations | ₹7,044.97 Cr | ₹7,720.55 Cr |
| Total Income | ₹7,051.59 Cr | ₹7,730.38 Cr |
| Total Expenses | ₹6,203.68 Cr | ₹6,773.63 Cr |
| Profit Before Tax | ₹911.52 Cr | ₹1,008.93 Cr |
| Profit for the Period (Attributable to Owners of the Company) | ₹648.76 Cr | ₹705.05 Cr |
| Total Comprehensive Income | ₹688.93 Cr | ₹740.17 Cr |
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Aditya Birla Capital Limited: Statement of Assets and Liabilities (Consolidated)
| Particulars | Q2 FY 2023-24 |
| Financial Assets | ₹1,98,954.58 Cr |
| Non-financial Assets | ₹7,017.72 Cr |
| Total Assets | ₹2,05,972.30 Cr |
| Total Equity | ₹26,448.77 Cr |
| Financial Liabilities | ₹1,78,305.24 Cr |
| Non-financial Liabilities | ₹1,218.29 Cr |
| Total Equity and Liabilities | ₹2,05,972.30 Cr |
Stock Performance
ABCL announced its financial results for Q2 and H1 of FY24 after the market closed on November 3rd. On Friday, the shares opened at ₹174.15 and rose 0.29% on the day to close at ₹173.20 apiece on BSE.
About the Company
Aditya Birla Capital Ltd. (ABCL) is one of the country’s leading financial services players and is a part of the Aditya Birla Group. The company boasts more than 38,000 employees and a nationwide reach with more than 1,331 branches. Furthermore, ABCL manages an aggregate AUM of around ₹3.9 lakh Cr. Aditya Birla Capital Ltd. is also the holding company of the following financial services businesses.
- Aditya Birla Finance Ltd.
- Aditya Birla Health Insurance Ltd.
- Aditya Birla Housing Finance Ltd.
- Aditya Birla Insurance Brokers Ltd.
- Aditya Birla Money
- Aditya Birla Sun Life Asset Management Company, among others
Sources:
https://www.adityabirla.com/media/media-releases/aditya-birla-capital-q2-fy24#:~:text=Aditya%20Birla%20Capital%20Limited%20today,705%20Crore%20in%20Q2%20FY24.
https://abconeprod.azureedge.net/-/media/ABCL/pdf/Quarterly-Results/ABCL_Conso_Result_Website_Q2FY24_03112023.webp?extension=webp&revision=3018c850-ae1c-4cbf-b08d-2dd8e62203da&modified=20231103121124
