• Strong growth across businesses and cost optimisation leading to delivery of highest ever quarterly consolidated profit
• Consolidated1 Revenue at Rs. 5,346 crores (grew 16 per cent year on year)
• Consolidated Net Profit at Rs. 289 crores (grew 15 per cent year on year)
• Track record of building scale, retailisation and profitability
• Strong focus on technology to enhance customer experience and build robust processes
• Building multiple partnerships with fintechs

Aditya Birla Capital Ltd. (“The Company”) announced its unaudited financial results for the quarter and nine months ended 31st December 2020.

The Consolidated1 Revenue of the Company for the quarter grew 16 per cent year on year to Rs. 5,346 crores. The Company, through its subsidiaries, continued its consistent performance with its diversified business model. The consolidated profit after tax for the quarter (after minority interest) grew 15 per cent year on year to Rs. 289 crores, the highest ever consolidated quarterly profit with strong growth across businesses.

The performance highlights of the key subsidiaries of Aditya Birla Capital Ltd. were as under:

Lending
• Overall lending book (NBFC and Housing Finance) stood at Rs. 57,522 crores
• Gross disbursement in lending businesses at Rs. 5,097 crores, higher than pre-COVID level with 18 per cent year on year growth and focus on retail and SME segments
• Lending businesses profit before tax at Rs. 308 crores, bounced back to previous year levels
• Strong funding access and amongst best cost of borrowing in industry
• Raised over Rs. 4,600 crores of long-term funds in YTD FY21
• Continue to have strong focus on quality of book with increased retailisation and reduced ticket sizes across the board

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

NBFC business

• Gross disbursement grew 20 per cent year on year to Rs. 4,282 crores in Q3 FY21, out of which 55 per cent disbursement in targeted Retail and SME targeted segments
• Loan book at Rs. 45,650 crores vs. previous quarter at Rs. 45,475 crores; Retail and SME loan book grew 2 per cent over previous quarter
• Added 34 new branches during Q3 FY21, primarily in semi urban locations
• Net interest margin expanded by 18 bps, year on year, to 5.24 per cent
• Pre provision operating profit (per cent of average book) expanded 8 bps year on year to 3.65 per cent
• Profit before tax at Rs. 261 crores, profitability back to pre-COVID levels
• Collection efficiency at 96.4 per cent in Dec ’20 at pre-COVID levels

Housing Finance business

• Loan book at Rs. 11,872 crores with 96 per cent retail mix; strong rebound in Gross disbursals at Rs. 815 crores were higher than pre-COVID levels, growing 19 per cent quarter on quarter and 5 per cent year on year
• Focus on granular business continues with 48 per cent disbursement in affordable segment in Q3 FY21. Affordable book mix at 24 per cent vs. 17 per cent in the previous year.
• Net interest margins expanded by 81 bps year on year, to 3.68 per cent
• Collection efficiency at 96.3 per cent in Dec’20 at pre-COVID levels
• Pre provision operating profit at Rs. 78 crores, grew 60 per cent year on year
• The Net profit after tax grew 38 per cent year on year, to Rs. 38 crores

Asset Management

• The momentum in AUM growth continued with 7 per cent year on year growth in domestic average assets under management (AAUM), to Rs. 2,55,458 crores
• Domestic average equity AUM grew by 6 per cent, quarter on quarter, to Rs. 87,516 crores
• Maintained overall AAUM market share (Ex. ETF) at 9.35 per cent
• Continued focus on building retail customer franchise with Rs. 1,22,574 crores AAUM in retail and HNIs
• Achieved highest ever quarterly profit before tax at Rs. 194 crores with 12 per cent year on year growth
• Improved profitability margin with Profit before tax / AAUM at 30 bps vis-à-vis 28 bps in previous year
• Digital transactions account for 85 per cent of overall transactions and 75 per cent of new folios created

Insurance

Total gross premium of life insurance and health insurance grew 27 per cent year on year, to Rs. 7,441 crores in YTD FY21.

Life Insurance business

• Individual First Year Premium (FYP) grew 6 per cent year on year, to Rs. 1,256 crores during YTD FY21, while industry private players de-grew 6 per cent, in the same period
• Group new business premium grew 50 per cent year on year, to Rs. 1,891 crores during YTD FY21, while industry de-grew 5 per cent, in the same period
• Consistent improvement in 13th month persistency up 200 bps, year on year, to 83.6 per cent
• Sharp reduction in Opex to premium ratio from 17.6 per cent in YTD FY20 to 14.0 per cent in YTD FY21
• Net VNB margin improved 80 bps year on year during YTD FY21
• Strong focus on digital with 94 per cent of individual business sourced digitally in YTD FY21

Health Insurance business

• Gross written premium at Rs. 859 crores during YTD FY21; grew 57 per cent over the previous year, ahead of industry growth of 26 per cent for Standalone Health Insurers
• Retail business contributing 74 per cent of total business
• Covering 11.2 million lives out of which over 7 million lives covered through micro and byte size products
• Business continues to build scale with focus on expenses, leading to significant improvement in combined ratio at 126 per cent in YTD FY21, vis-à-vis 142 per cent in YTD FY20
• Robust digital enablement with 98 per cent digital issuance in YTD FY21 and digital renewals at 92 per cent

Other businesses

• Profit before tax grew 2.8 times, year on year, to Rs. 36 crores, from Rs. 13 crores

  • General Insurance broking quarterly profit before tax grew 2.6 times, year on year, to Rs. 18 crores
  • ARC platform AUM at Rs. 2,350 crores and quarterly profit before tax doubled to Rs. 11.5 crores
  • Stock and securities broking business profit before tax grew 64 per cent year on year, to Rs. 6 crores

Recognition

Our focus on innovation and excellence has yet again been recognised. Aditya Birla Capital was adjudged as one of the “Top 25 Innovative Companies in India” at the coveted CII Industrial Innovation Awards 2020.

Going forward
• Driving Cross sell

  • Focus on maximising value of existing active customer base of 20 million and other relevant databases of size, through an active cross sell program
  • Leveraging digital, data and analytics across the platform
  • Leveraging technology and partnerships with Fintechs to grow revenue, improve customer experience, optimise cost and build scalable systems.