Q1FY23 net profit of Aditya Birla Capital increases by 42% to Rs429 crore

4 Aug 2022 , 12:44 PM

Due to robust performance across all divisions, Aditya Birla Capital Ltd’s consolidated net profit after tax increased 42% year over year to Rs429 crore. The company’s consolidated revenue increased 26% year over year to Rs5,859 crore.

With its diversified business model, the Company, through its subsidiaries, continues to uphold its reputation for providing solid performance through the market and macroeconomic cycles.

With a strong focus on retailization and a total active customer base of over 4.8 million, the company’s overall lending book increased by 22% year over year to Rs69,887 crore.

The NBFC loan book increased 26% year over year to Rs57,839 crore, while the retail, SME, and HNI loan books increased 39% year over year. As a result, the NBFC loan book’s contribution to the total book was the highest it has ever been as of June 22 at 64% compared to 58% the year prior. In the quarter under review, gross disbursement increased 3.1 times over the prior year to Rs8,039 crore.

In contrast, the loan book for housing finance increased by 7% year over year to Rs12,049 Crore, with a 94% retail mix. At Rs867 Crore in Q1 FY22, gross disbursal was solid and in line with company priorities. 48% of the funds were spent on the affordable housing category.

The company’s mutual fund division also experienced significant growth in the quarter under review. As of June 30, the quarterly average assets under management (AUM) stood at Rs2.82 lakh crore, with the AUM for domestic equity increasing 14% to Rs1.17 lakh crore.

In June 2022, systematic monthly inflows were Rs898 crore. In the first quarter of the fiscal year, there were around 2.77 lakh new SIP accounts opened, an increase of about 23% from the same period last year.

In Q1FY23, the combined gross written premium for life and health insurance increased by 53% year over year to Rs3,250 crore.

Individual first-year premiums for life insurance increased year over year by 26% to Rs409 crore and year over year by 18% to Rs1,285 crore, of which 74% was collected digitally.

In contrast, gross written premiums for health insurance increased 71% year over year to Rs630 crore, with retail and rural areas accounting for 59% of total business. Compared to Rs128 crore the year before, the net loss has decreased to Rs71 crore.

In the future, it is anticipated that the firm would use technology and analytics to increase sales, enhance customer satisfaction, reduce expenses, and develop a reliable and scalable business model.

The company’s priorities will be expanding its geographic reach and acquiring customers directly through business channels.