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Published: November 15, 2023
Updated: November 15, 2023

Aditya Birla Capital Loans at Rs 1 lakh crore; retail/SME share up

Revealing this is at a conference call on November 3, CEO Visakha Mulye added that income from operations of the company increased 13.12% to Rs 7,720.55 crore in Q2FY2024. The revenue of the NBFC (34.42% of total revenues) segment has gone up 65.23% to Rs 3,052.13 crore. The revenue of the housing finance (5.08% of total revenues) segment has gone up 30.98% to Rs 450.18 crore. The revenue of the life insurance (44.09% of total revenues) segment has gone up 4.36% to Rs 3,908.95 crore.

The revenue of the asset management (4.39% of total revenues) segment has gone up 0.77% to Rs 389.10 crore. The revenue of the general insurance broking (1.28% of total revenues) segment has gone down 37.94% to Rs 113.38 crore. The revenue of the stock and securities broking (1.10% of total revenues) segment has gone up 42.29% to Rs 97.38 crore. The revenue of the health insurance (8.27% of total rev-enues) segment has gone up 20.41% to Rs 733.69 crore. The revenue of Other Financial Services (1.38% of total revenues) has gone up 159.34% to Rs 122.02 crore.

According to her, overall OPM has increased to 36.55% in Q2FY2024 from 24.61% in Q2 FY2023, leading to a 68% rise in operating profit to Rs 2,821.92 crore. Other expenditure as a percentage of total income moved down to 54.47% from 68.13% in Q2FY2024. The staff cost as a percentage of total income increased to 4.46% from 4.12% in Q2FY2024. Provisions as percentage of total income increased to 4.51% from 3.14% in Q2FY2024.

PROFIT SURGE

Other income increased 21.51% to Rs 9.83 crore. Interest cost increased 72.39% to Rs 1,827.05 crore. Depreciation moved up 38.34% to Rs 47.95 crore. PBT moved up 61.26% to Rs 956.75 crore. The effective tax rate declined to 29.70% in Q2FY2024, compared to 35.57% in Q2FY2023. Provision for tax was expense of Rs 284.15 crore, compared to Rs 211.03 crore. Profit after tax rose 75.95% to Rs 672.60 crore. Profit attributable to non-controlling interest was Rs 19.73 crore as compared to loss of Rs 8.88 crore. The share

of profit of associate companies decreased 46.26% to Rs 52.18 crore. Finally, net profit attributable to owners moved up 44.40% to Rs 705.05 crore. Pointing out that “we expect the positive micro-economic trend to continue and the economy to perform well in FY2024, Ms Mulye added, “The company continues to follow the ‘one ABC one P&L’ policy.”

The company has recorded 41% growth in the lending portfolio to Rs 1.09 lakh crore at end- September 2023. The overall asset management of the company has increased 12% to over Rs 4 lakh crore. The consolidated revenues moved up 22% to Rs 8,831 crore in Q2FY2024. PBT has jumped 40% to cross Rs 1,000 crore. Net profit has moved up 44% to Rs 705 crore in Q2FY2024

DIGITAL PATH

The company continues to enhance digital offerings and has onboarded 78% of mutual fund customers, 80% of life insurance customers and 85% of health insurance customers. The company is also focused on expanding its physical footprint with a focus on tier 3 and 4 cities. The branches of the company increased by 71 to touch 1,403 branches across businesses at endSeptember 2023.

The NBFC business continues with a strong momentum in disbursements and granularisation/ of the business. The disbursements surged 32% to Rs 16,477 crore in Q2FY2024. The NBFC loan book increased 44% yoy and 9% on a sequential basis to Rs 93,520 crore at end-September 2023. The business has recorded a healthy RoA of 2.51% and RoE of 18% in Q2FY2024.

After discussing the performance of the company during Q2 FY2024, Ms Mulye added, “The company continues to build its retail and SME portfolio and increase it share in the overall loan book. The retail and SME loan book has increased by 49%, contributing two- thirds of the overall AUM of the company.”