Aditya Birla Capital reports results for the year ended 31st March, 2018

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Key Highlights

·         Consolidated revenue, on a like-to-like1 basis, increased 21%, over the prior year, to              ` 13,428 Crore from ` 11,071 Crore.

·         Consolidated earnings before tax (EBT), on a like-to-like1 basis, increased 35% over the prior year, to ` 1,554 Crore from ` 1,150 Crore; Adjusted for investments in our recently launched health insurance business, like-to-like EBT growth was 41% over the prior year.

·         Net profit (before minority interest) on like-to-like1 basis, grew by 30% year on year to                       ` 1,004 Crore from ` 775 Crore, crossing the ` 1000 Crore mark for the first time

·         Net profit (after minority interest) on like-to-like1 basis, grew by 44% year on year to                       ` 824 Crore from ` 573 Crore basis1

·         Lending:

o        Lending book (Incl. housing), rose by 32% year on year to reach ` 51,378 Crore.

o        Long term rating of ‘AAA’ by India Ratings and Research

·         Asset Management:

o        Ranked No.3 mutual fund in India

o        Average Assets under management at ` 2,67,739 Crore, up by 27% year on year

o        Overall domestic market share at 10.75% and equity market share of 9.2%

·         Life Insurance:

o        Reported Indian Embedded Value at ` 4,281 Crore as of 31st March 2018 vs. ` 3,810 Crore as of 31st March 2017, a growth of 12.4% year on year

o        Posted positive Net VNB margin at 4.3% for FY 2017-18 compared to negative 5.5% in previous year

·         Health Insurance: In the first year of operation, achieved gross written premium of                     ` 243 Crore, covering about 1 million lives

·         Launch of universal brand “Aditya Birla Capital” – A single brand encompassing all the financial needs of customers

Mumbai, May 15, 2018: Aditya Birla Capital Limited (ABCL) today announced its financial results for the year ended 31st March 2018. ABCL, formerly known as Aditya Birla Financial Services Limited, is the holding company of the financial services business of the Aditya Birla Group. It is a Universal Financial Solutions provider, meeting the lifetime needs of customers. Its subsidiaries include an NBFC, a Housing Finance company, an Asset Management company, a Life Insurance company, a Health Insurance company and several other subsidiaries.

Quarter 4 Consolidated Results Full Year
2016-17

(Previous Year)

Like to Like1

 2017-18

(Current Year)

 2016-17

(Previous Year)

Like to Like1

 2017-18

(Current Year)
3,353 4203 Revenue 11,071 13,428
240 398 Earnings before Tax 1,150 1,554
146 249 Net Profit (before Minority Interest) 775 1,004
109 208 Net Profit 573 824

Note 1: Aditya Birla Nuvo Limited transferred its 51% stake in Aditya Birla Sun Life Insurance Co. Limited to Aditya Birla Capital Limited w.e.f. 23rd Mar 2017. Previous year financials have been restated including earnings of Aditya Birla Sun Life Insurance Co. Limited to make performance comparable.

Business Level Highlights:

Aditya Birla Finance Ltd. (ABFL)

ABFL continues to have a well diversified portfolio with a focus on asset quality, robust risk management and strong performance

  • Lending book expanded by 25% year on year to ` 43,242 Crore
  • Gross NPA at 0.92% and net NPA at 0.65%
  • Net worth increased by 33% year on year to ` 6,320 Crore
  • Earnings before tax touched all time high ` 1,109 Crore, an increase of 33% over previous year

Aditya Birla Housing Finance Ltd. (ABHFL)

ABHFL is a fast growing housing finance company. The business is currently operating with                    51 branches and over 2700 channel partners pan India.

  • Doubled its loan book to ` 8,137 Crore from ` 4,136 Crore in the previous year
  • Scaling up affordable housing lending which was launched in Q2 FY18
  • Reported full year profitability with earnings before tax at ` 24 Crore from loss of ` 15 Crore in the previous year
  • Net worth increased to ` 750 Crore as on 31st March 2018

Aditya Birla Sun Life AMC Ltd. (ABSLAMC)

Ranks 3rd amongst mutual funds in India with strong profitability growth

  • Registered a 27% year-on year growth in its quarterly average AUM (AAUM) at ` 267,739 Crore
  • Overall domestic market share at 10.75% in Q4 FY 2017-18
  • Achieved highest ever domestic equity market share of 9.2%. The strong focus on scaling up retail and high margin assets continued, with its domestic equity AAUM expanding by 73% year on year to ` 86,450 Crore.
  • Monthly SIP book doubled year on year to ` 956 Crore (Including STP)
  • EBT increased year on year by 46% to ` 493 Crore from ` 337 Crore
  • ABSLAMC has a solid and consistent investment performance track record underpinning its growth

Aditya Birla Sun Life Insurance (ABSLI)

ABSLI is a significant private life-insurer in India

  • Indian Embedded Value (IEV) at ` 4,281 Crore as on 31st March 2018 vs. ` 3,810 Crore as on 31st March 2017
  • Reported Net Value of New Business margin at +4.3% for FY 2017-18 vs. negative 5.5% in previous year. Gross Value of New Business margin was at 32.9% for FY 2017-18 vs. 28.9% for FY 2016-17.
  • The momentum of new business premium growth continued with individual new business premium growth of 20% during FY 2017-18
  • EBT increased 35% over the prior year, to ` 167 Crore from ` 124 Crore
  • 13th month persistency has improved year on year to 75.2% from 71.4% in previous year, reflecting the focus on quality of business

Aditya Birla Health Insurance Co. Ltd. (ABHI)

ABHI is a fast growing health insurance provider with a differentiated offering and business model

  • In the first year of full operation, gross written premium at ` 243 Crore in FY 2017-18, covering about 1 million lives
  • Established 5 banca partnerships and also on-boarded about 15,700 agents
  • Created a multi-channel distribution model with 59 branches in 36 cities and has tied up with 4,200+ hospitals

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 enable it to chart a differentiated, accelerated and disciplined path to growth.  ABCL has built a leadership position in a number of businesses. Anchored by more than 14,500 employees, ABCL has a nationwide reach through over 1,600 points of presence and more than 190,000 agents / channel partners.

Corporate Comm India(CCI Newswire)

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