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The income from operation increased 11% to Rs 3975.94 crore in Q2FY2020. The revenue from NBFC segment increased 16% to Rs 1558.16 crore, while the revenue from Health Insurance moved up 45% to Rs 148.54 crore and Housing Finance 34% to Rs 325.07 crore in Q2FY2020. The revenue from General Insurance Broking also increased 7% to Rs 116.37 crore and Life Insurance 2% to Rs 1791.30 crore. However, the revenue from Asset Management declined 17% to Rs 322.75 crore and Stock & Securities Broking 9% to Rs 40.07 crore in Q2FY2020.
The PBT from NBFC was flat at Rs 317.07 crore, while the PBT from Asset Management moved up 13% to Rs 175.35 crore and Housing Finance 70% to Rs 35.55 crore in Q2FY2020. The PBT from General Insurance Broking increased 35% to Rs 11.36 crore and Stock & Securities Broking 17% to Rs 4.07 crore. The Health Insurance segment recorded lower pre-tax losses of to Rs 69.87 crore in Q2FY2020. However, the Life Insurance PBT rebounded to Rs 41.43 crore and other financial services to Rs 43.48 crore in Q2FY2020 from losses in Q2FY2019.
Performance for the quarter ended September 2019
Overall OPM improved to 37.3% in Q2FY2020 from 34.3% in Q2FY2019, as other expenditure as a percentage of net sales eased to 51.9% from 56.2%. The staff cost as a percentage of net sales also declined to 4.7% from 5.7% in Q2FY2019. However, the provisions increased to 3.8% from 1.4% in Q2FY2019.
Interest cost increased 18% to Rs 1166.92 crore. PBT moved up 31% to Rs 371.82 crore in the quarter ended September 2019. The effective tax rate declined to 347% from 46.0%. There was profit attributable to non-controlling interest of Rs 12.85 crore in Q2FY2020. Net Profit, increased 37% to Rs 255.78 crore in the quarter ended September 2019.
Book value of the company stood at Rs 48.3 per share, while adjusted book value (net of Net Stage 3 assets) stood at 45.4 per share end September 2019.
Company wise performance
Overall lending book (NBFC and Housing Finance) grew 4% yoy to Rs 60477 crore vs Rs 57945 crore in the previous year.
NBFC and HFC have an optimized asset and liability mix with adequate liquidity to meet growth requirements. The company raised approximately Rs 8000 crore of long-term funds during the half year.
The company has further diversified borrowing profile with sanction of US$ 275 million (drawn USD 100 million) through ECB route.
The company continues to have strong focus on quality with greater diligence in underwriting and reduced ticket sizes across the board.
Loan book grew at slow pace of 2% yoy to Rs 48368 crore with SME and Retail segment showing better growth of 14%.
Net Interest Margin expanded by 63 bps year on year to 5.28%
Quarterly profit after tax grew 6% year on year to Rs 218 crore; adjusting for a one time impact of deferred tax, Quarterly profit after tax grew by 32% year on year to Rs 273 crore
Housing Finance business
Loan book grew 22% year on year to Rs 12079 crore while maintaining Net Interest Margin at 3.0%
Cost to Income Ratio improved to 45%, as compared to 70% in previous year led by scale and operating efficiencies
Quarterly profit before tax grew 2.1 times year on year to Rs 28 crore
Total gross premium of life insurance and health insurance grew to Rs 1716 crore
Life Insurance business
Individual First Year Premium (FYP) grew 20% year on year during the half year, higher than industry (excl. LIC) growth at 11%
Consistent improvement in quality across periods with 13th month persistency improving by 610 bps year on year to 80.2%
Embedded Value (EV) at Rs. 5031 as on 30th September 2019 with EV growing by 14.4%
Continue to focus on balanced channel and product mix for value creation
Health Insurance business
Gross written premium at Rs 315 crore, grew 78% over the previous year with retail business contributing 67%.
Covering more than 5 million lives out of which 2.4 million lives through micro products.
Business continues to build scale with significant improvement in combined ratio during half year at 155% vs. 180% in the previous year.
One of the largest third party distribution capacities with 10 banca partners.
Total average assets under management (AAUM) at our Mutual Fund was Rs 269393 crore.
Domestic equity AAUM mix steady at 35%.
Quarterly profit after tax grew 40% year on year to Rs 148 crore.
Keeping its focus on expanding retail presence, investor folios have grown 1.5 times over last 2 years to reach 7.1 million folios.
Aditya Birla Capital has a diversified portfolio of businesses catering to the life time needs of its customers. This diversification also allows the conglomerate to capture opportunities in different segments of the market and deliver consistent growth.
Financial Performance H1FY2020
For the half year ended September 2019 (H1FY2020), the consolidated net revenue of the company increased 15% to Rs 7621.69 crore. The revenue in NBFC segment moved up 21% to Rs 3173.13 crore, life insurance revenues 3% to Rs 3185.64 crore and housing finance 38% to Rs 634.78 crore. Further, the revenues from general insurance broking increased 11% to Rs 251.60 crore and health insurance 65% to Rs 294.48 crore. However, asset management revenues declined 15% to Rs 638.38 crore and stock and securities broking revenues fell 2% to Rs 85.46 crore in H1FY2020 over H1FY2019.
With 23% rise interest cost at Rs 2341.53 crore and depreciation at Rs 49.02 crore, PBT increased 31% to Rs 808.96 crore in H1FY2020. The effective tax rate declined to 38.3% in H1FY2020 from 43.6% in H1FY2019. Net Profit after non-controlling interest moved up 32% yoy to Rs 525.63 crore in H1FY2020.
Aditya Birla Capital: Consolidated Results
|Particulars||1909 (3)||1809 (3)||Var %||1909 (6)||1809 (6)||Var %||1903 (12)||1803 (12)||Var %|
|Income from Operations||3975.94||3590.86||11||7621.69||6653.97||15||15163.51||11523.88||32|
|Depreciation / Amortization||24.43||14.09||73||49.02||27.77||77||57.89||44.27||31|
|Profit attributable to non-controlling interest||-12.85||-32.92||-61||-26.60||-50.61||-47||-59.64||0.02||LP|
|Net Profit after minority and share in associate||255.78||186.07||37||525.63||398.74||32||870.94||693.06||26|
|* Annualized on current equity of Rs 2312.56 crore. Face Value: Rs 10, Figures in Rs crore|
PL: Profit to Loss, LP: Loss to Profit
Source: Capitaline Corporate Database
Aditya Birla Capital: Segment Results
|Particulars||1909 (3)||1809 (3)||(%) of Total||Var (%)||1909 (6)||1809 (6)||(%) of Total||Var (%)||1903 (12)||1803 (12)||(%) of Total||Var (%)|
|General Insurance Broking||116.37||108.58||3||7||251.6||225.87||3||11||448.64||264.93||3||69|
|Stock & Securities Broking||40.07||44.04||1||-9||85.46||87.07||1||-2||171.52||164.57||1||4|
|Other Financial Services||10.12||6.56||0||54||22.24||16.19||0||37||26.86||74.59||0||-64|
|Total Segmental Revenue||4312.38||3984.4||100||8||8285.71||7416.5||100||12||16598.01||12896.3||100||29|
|Less: Inter Segment Revenue||-13.52||-6.46||109||-25.28||-14.38||76||-27.64||-55.23||-50|
|Total Segment Revenue from Operations (Net)||4298.86||3977.94||8||8260.43||7402.12||12||16570.37||12841.07||29|
|Segment Results (Profit Before Tax)|
|General Insurance Broking||11.36||8.39||2||35||35.27||23.43||3||51||27.35||39.15||2||-30|
|Stock & Securities Broking||4.07||3.49||1||17||9.21||6.06||1||52||14.00||10.10||1||39|
|Other Financial Services||43.48||-45.77||9||LP||-94.94||88.40||-9||PL||-200.71||-153.05||-11||31|
|Total Segment Results||471.48||384.55||100||23||1023.78||811.21||100||26||1796.92||1437.68||100||25|
|General Insurance Broking||17.48||33.42||0||-48||17.48||33.42||0||-48||22.94||52.91||0||-57|
|Stock & Securities Broking||213.91||204.55||2||5||213.91||204.55||2||5||209.29||201.11||2||4|
|Other Financial Services||-1455.21||-1209.9||-12||20||-1455.21||-1209.9||-12||20||-1337.15||-556.76||-12||140|
|Add: Unallocated Corporate||159.01||-0.42||0||-||159.01||-0.42||1||-||73.32||-64.03||1||-|
|Figures in Rs crore|
Source: Capitaline Corporate Database
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