Aditya Birla Capital Declares 33% Rise In Net Profit To Rs 812 Crore

Aditya Birla Capital Limited, a leading financial services conglomerate, on Monday reported its impressive financial performance for the fourth quarter and fiscal year ending March 31, 2024. The company showcased robust growth across its diverse portfolio, demonstrating resilience and adaptability in a dynamic market environment.

Revenue and Profit Growth:

The consolidated revenue surged by 32% year-on-year to Rs. 12,079 Crore in Q4 FY24, and by 30% year-on-year to Rs. 39,050 Crore in FY24.

Meanwhile, the consolidated profit after tax witnessed substantial growth, escalating by 33% year-on-year to Rs. 812 Crore in Q4 FY24, and by 41% year-on-year to Rs. 2,902 Crore in FY24.

Business Expansion and Performance:

Aditya Birla Capital attributed its success to the strong momentum across its businesses. Notably, the overall lending portfolio, comprising NBFC and HFC, experienced a remarkable 31% year-on-year growth, reaching Rs. 1,24,059 Crore as of March 31, 2024. Additionally, the total Assets Under Management (AUM) expanded by 21% year-on-year to Rs. 4,36,442 Crore, with significant contributions from the AMC, life insurance, and health insurance segments.

Innovative Distribution Channels:

The company's commitment to customer-centricity was evident through its omnichannel distribution architecture. The recently launched D2C platform, ABCD, garnered substantial traction, boasting over 1 lakh registrations within a short span. ABCD offers a wide array of financial products and services, coupled with personalized finance tracking capabilities.

Focus on MSME Segment:

Aditya Birla Capital continued its foray into the MSME segment through Udyog Plus, its comprehensive B2B platform. With over 8 lakh registrations to date, Udyog Plus facilitates seamless access to business loans, with disbursements totaling approximately Rs. 500 Crore. The platform's total AUM has reached approximately Rs. 250 Crore, underscoring its growing significance in empowering small businesses.

Physical Presence Expansion:

The company remains committed to expanding its physical footprint, boasting a pan-India presence with 1,474 branches across all business verticals as of March 31, 2024. This strategic expansion aims to enhance penetration in tier 3 and tier 4 towns while tapping into new customer segments.

Compliance and Stakeholder Value:

Aditya Birla Capital and Sunlife divested a portion of their stakes in ABSL AMC, garnering significant investor interest. This move not only ensures compliance with SEBI regulations but also strengthens the company's balance sheet, augmenting its capital base by approximately Rs. 570 Crore.

Sector-wise Performance Highlights:

NBFC Business: Witnessed robust growth in disbursements and loan portfolio, with a healthy return on assets and equity.

Housing Finance Business: Recorded substantial growth in disbursements, loan portfolio, and profitability, maintaining strong asset quality metrics.

Asset Management Business: Notable growth in mutual fund assets under management, individual monthly AUM, and profitability, underscoring its leadership position in the market.

Life Insurance Business: Demonstrated resilience with growth in first-year premium and renewal premium, coupled with improved persistency ratios and net VNB margin.

Health Insurance Business: Registered significant growth in gross written premium, market share, and maintained a stable combined ratio, reflecting operational efficiency.

Aditya Birla Capital's stellar performance in Q4 FY24 and FY24 underscores its resilience, innovation, and commitment to delivering long-term value to its stakeholders amidst evolving market dynamics.