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Mumbai: Aditya Birla Capital Limited (“The Company”) announced its audited financial results for the quarter and year ended 31st March 2022.
In FY2021-22, The Consolidated Revenue1 of the Company grew 16% year on year to Rs. 23,633 Crore. The consolidated profit after tax (after minority interest) grew 51% year on year, to Rs. 1,706 Crore, the highest ever recorded by the Company. The reported consolidated PAT includes a net gain of Rs. 161 Crore from the sale of ~1% stake of the Company’s 51% stake in ABSLAMC, through its IPO in October 2021.
During Q4 FY2021-22, the consolidated revenue grew 18% year on year to Rs. 6,962 Crore and profit after tax increased by 20% year on year to Rs. 450 Crore.
The Company’s retailisation strategy has led to the active customer base growing to a significant ~ 35 million, a 36% year on year growth. The scale achieved by the Company’s subsidiaries is evident, with overall AUM across asset management, life insurance and health insurance businesses growing 10% year on year, to Rs. 3,70,608 Crore, making it one of the largest fund managers in the country. The overall lending book (NBFC and Housing Finance) grew 11% year on year, to Rs. 67,189 Crore, making it a lending portfolio of scale. The gross premium (across Life and Health Insurance) grew 25% year on year to Rs. 13,867 Crore, reflecting the scale in the insurance businesses.
Mr Ajay Srinivasan, Chief Executive, Aditya Birla Capital Limited, said “The Company has built an integrated platform with high quality, significant scale and a retail franchise of ~ 35 million active customers. We have tripled our profits over the last 5 years and nearly doubled our profit over the last two years, in spite of the several external challenges. Our integrated and diversified model backed by our motivated teams have helped us deliver consistent growth in profitability across economic cycles and record results this fiscal. The Company is well placed to capitalise on its strong franchise and the future opportunities in the financial services space”
NBFC business:
o Strong momentum in gross disbursement at Rs. 9,891 Crore in Q4 FY22, up 51% year on year and 49% quarter on quarter; in line with the business’s focus, Retail, SME and HNI contributed 65% of Q4 FY22 gross disbursements
o Highest ever net interest margin at 6.25%, expanding by 91 bps year on year, led by growth in retail and SME segments and lower cost of borrowing
o Strong improvement in quality of assets with Gross stage 3 reduced by 79 bps quarter on quarter to 3.1% from 3.9% in the previous quarter
o Profit before tax at Rs. 1,487 Crore in FY22, reflecting a growth of 44% year on year
o Strong growth in return on assets at 2.3%, compared to 1.7% a year ago
Housing Finance business:
o Loan book up at Rs.12,005 Crore, with 94% retail mix
o Strong growth in gross disbursal at Rs. 1,310 Crore in Q4 FY22, with a year on year growth of 16%; in line with the business focus, the affordable housing segment contributed 47% of disbursements
o Affordable housing book grew 39% to Rs. 4,510 Crore leading to increase in affordable mix at 38%, against 27% in the previous year
o Highest ever net interest margin at 4.24%, expanded by 101 bps, year on year
o Improvement in quality of assets with Gross stage 3 reduced by 10 bps quarter on quarter to 2.02%
o Profit before tax at Rs. 253 Crore, reflecting strong growth of 44% over the previous year
o Strong return on assets at 1.90%, compared to 1.25% in the previous year
Asset Management:
Life Insurance business:
o Individual First Year Premium (FYP) grew 14% year on year to Rs. 2,212 Crore
o Group business grew 30% year on year to Rs. 3,223 Crore
o Renewal premium grew 24% year on year, to Rs. 6,475 Crore in FY22, out of which 73% was collected digitally
o Total gross premium up 24% year on year, to 12,140 Crore
o Consistent improvement in 13th month persistency to 85% compared to 82% a year ago
o Delivered highest ever net VNB margin at 15% in FY22, expanded by a significant 439 bps year on year
o Sharp reduction in Opex to premium ratio from 13.9% in FY21 to 12.7% in FY22
o Profit before tax grew 15% year on year, to Rs. 175 Crore
o Embedded value at Rs. 7,609 Crore, growing by 18% year on year
Health Insurance business:
o Achieved break even in Q4 FY22 (excluding COVID claims), in line with guidance and well ahead of the industry
o Business now covering 19 million lives, out of which over 14 million lives are through micro and byte size products
o Business continues to build scale with focus on expenses, leading to improvement in combined ratio (normalized for COVID claims), at 109% vs. 120% in the previous year
o Robust digital enablement, with 98% policies issued digitally
Other businesses:
o Stock and Securities broking business achieved highest ever profit before tax, grew 59% year on year, to Rs. 36 Crore