07 Nov 2017
Aditya Birla Capital reports results for the quarter ended 30 September 2017
- Consolidated earnings before tax (EBT), on a like-to-like1 basis, increased 22 per cent over the prior year comparable quarter, to Rs.388 crore from Rs.318 crore; adjusted for investments in our recently launched health insurance business, like-to-like EBT growth was 33 per cent, over the prior year comparable quarter
- Consolidated revenue, on a like-to-like1 basis, increased 14 per cent, over the prior year comparable quarter, to Rs.3,193 crore from Rs.2,791crore
- Lending book (Incl. housing) rose by 40 per cent year on year to reach Rs.44,675 crore
- Long term issuer rating upgraded to ‘IND AAA’ from ‘IND AA+’ for Aditya Birla Finance Ltd and Aditya Birla Housing Finance Ltd by India Ratings and Research
- Asset Management:
- Assets under management (AUM) at Rs.244,609 crore, up by 34 per cent over previous year
- Asset Management business achieved highest ever domestic market share of 10.7 per cent and highest ever equity market share of 9.0 per cent
- Life Insurance
- Indian Embedded Value for insurance business at Rs.3,810 crore vs. traditional embedded value at Rs.3,428 crore as on 31 March 2017
- Launch of universal brand “Aditya Birla Capital” – A single brand encompassing all the
Note 1: Aditya Birla Nuvo Limited transferred its 51 per cent stake in Aditya Birla Sun Life Insurance Co. Limited to Aditya Birla Capital Limited w.e.f. 23 March 2017. Previous year financials have been restated including earnings of Aditya Birla Sun Life Insurance Co. Limited to make performance comparable.
Aditya Birla Capital Limited (ABCL) today announced its financial results for the second quarter of FY 2018. ABCL, formerly known as Aditya Birla Financial Services Limited, is the holding company of the financial services business of the Aditya Birla Group.
ABCL was listed on the stock exchanges on 1 September 2017 as the culmination of the composite scheme of arrangement under which Aditya Birla Nuvo Limited (ABNL) merged with Grasim Industries Limited (Grasim), and the financial services undertaking was subsequently demerged into ABCL.
Business level highlights:
Aditya Birla Finance Limited (ABFL)
ABFL ranks among the top 5 private diversified NBFCs in India. ABFL continues to have consistent, strong growth with a focus on high asset quality, robust risk management and profitability.
Aditya Birla Housing Finance Limited (ABHFL)
- India Rating and Research (Ind-Ra) has upgraded ABFL’s long term issuer rating to ‘IND AAA’ from ‘IND AA+’
- Lending book expanded by 34 per cent year on year to Rs.38,898 crore
- The quality of portfolio remains sound with gross NPA at 0.53 per cent and net NPA at 0.34 per cent
- Net worth increased by 36 per cent year on year to Rs.5,593 crore
- EBT increased by 26 per cent year on year to Rs.277 crore
ABHFL is a fast growing housing finance company. The business is currently operating with 42 branches and over 2,000 channel partners pan India.
Aditya Birla Sun Life AMCLimited (ABSLAMC)
- Turned profitable in its 7th quarter since inception and declared EBT of Rs.2.7 crore in Q2 FY2017-18
- Doubled its loan book to Rs.5,777 crore from Rs.2,872 crore in the prior year comparable period
- India Rating and Research (Ind-Ra) has upgraded ABHFL’s long-term issuer rating to ‘IND AAA’ from ‘IND AA+’
- Launched affordable housing segment in June 2017
- Net worth increased to Rs.639 crore in Q2 FY 2017-18
ABSLAMC is the 4th largest and one of the fastest growing asset management companies in India.
Aditya Birla Sun Life Insurance (ABSLI)
- EBT increased by 44 per cent over the prior year comparable quarter, to Rs.116 crore from Rs.81 crore
- Achieved highest ever market share of 10.7 per cent in this quarter
- Registered a 34 per cent year-on-year growth in the quarterly average AUM (AAUM) at Rs.244,609 crore
- Achieved highest ever domestic equity market share of 9.0 per cent. The strong focus on scaling up retail and high margin assets continued, with its domestic equity AAUM expanding by 68 per cent year on year to Rs.68,592 crore and PMS AAUM more than doubling to Rs.4,198 crore
- ABSLAMC has solid and consistent investment performance track record underpinning its growth
ABSLI is a significant private life-insurer in India.
Aditya Birla Health Insurance Company Limited (ABHI)
- EBT increased 18 per cent over the prior year comparable quarter, to Rs.41 crore from Rs.34 crore
- Reported Indian Embedded Value (IEV) at Rs.3,810 crore as on 31 March 2017 vs. Rs.3,428 crore under traditional EV method and value of gross new business margin at 28.9 per cent for FY 2016-17
- The momentum of new business premium growth continues with individual new business premium growth of 21 per cent during the H1 FY2017-18
- 13th month persistency has improved year on year from 67.7 per cent to 70.4 per cent in half year reflecting the focus on quality of business
ABHI is a fast growing health insurance provider with a differentiated offering and business model.
Aditya Birla ARC Limited (ABARC)
- Gross written premium of Rs.96 crore in H1 FY2017-18 covering more than 6 lakh lives as on date
- Established five banca partnerships and also empanelled about 8,800 direct selling agents
- Created a multi-channel distribution model and has tied up with 3,000+ hospitals
has received “in principle” approval from the Reserve Bank of India on 22 September 2017 to set up an “Asset reconstruction company”.
ABCL is in a unique position of being able to provide universal financial solutions to meet customers’ money needs for life. ABCL’s focused customer-centric approach under a single brand “Aditya Birla Capital” will ensure it continues to chart a differentiated, accelerated and disciplined path to growth. ABCL has built a leadership position in a number of businesses and ranks amongst the top fund managers in India. Anchored by more than 14,500 employees, ABCL has a nationwide reach through over 1,300 points of presence and more than 150,000 agents / channel partners.
About Aditya Birla Capital Limited
Aditya Birla Capital Limited (ABCL) is the holding company of all the financial services businesses of the Aditya Birla Group. With a strong presence across the life insurance, asset management, private equity, corporate lending, structured finance, project finance, general insurance broking, wealth management, equity, currency and commodity broking, online personal finance management, housing finance, pension fund management and health insurance business, ABCL is committed to serving the end-to-end financial services needs of its retail and corporate customers. Anchored by more than 14,500 employees, ABCL has a nationwide reach through over 1,300 points of presence and more than 150,000 agents / channel partners.
Aditya Birla Capital is a part of the Aditya Birla Group, a USD 40 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. About 50 per cent of its revenues flow from its overseas operations.
: 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.