In This Article:
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Consolidated Revenue: INR 10,949 crores, a 10% year-on-year growth.
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Consolidated Profit After Tax: INR 708 crore, compared to INR 736 crores in Q3 last year.
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NBFC Portfolio Growth: 21% year-on-year to INR 1.19 trillion.
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NBFC Profit After Tax: INR 600 crores, a 5% year-on-year growth.
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HFC Portfolio Growth: 62% year-on-year to INR 26,714 crores.
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Mutual Fund Average AUM: INR 3.83 trillion, a 23% year-on-year growth.
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Life Insurance Individual First Year Premium Growth: 31% year-on-year.
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Health Insurance Gross Written Premium Growth: 39% year-on-year.
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Branches: 1,482 branches as of December end.
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VNB Margin: 10.8% for the 9 months of FY 2025.
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Health Insurance Market Share: Increased by 140 basis points year-on-year to 12%.
Release Date: February 03, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Aditya Birla Capital Ltd (NSE:ABCAPITAL) reported a 10% year-on-year growth in total consolidated revenue, reaching INR 10,949 crores.
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The company's NBFC portfolio grew by 21% year-on-year, with a significant increase in secured business loans to SMEs, which grew by 37% year-on-year.
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The Housing Finance Company (HFC) portfolio experienced a robust growth of 62% year-on-year, supported by investments in digital properties and distribution.
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The Asset Management business saw a 23% year-on-year growth in mutual fund average AUM, reaching INR 3.83 trillion.
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The Health Insurance business continued to be the fastest-growing stand-alone health insurer, with a 39% year-on-year growth in gross written premium.
Negative Points
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The consolidated profit after tax decreased to INR 708 crore from INR 736 crores in the same quarter last year.
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The Indian macroeconomic environment remains challenging, with moderating urban demand and high capital market volatility.
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The company's credit cost increased slightly to 1.36%, though it remains within the normalized threshold.
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There was a decline in the profit after tax for the NBFC business, which grew only by 5% year-on-year.
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The company's ROA and ROE for the NBFC business were relatively modest at 2.1% and 13.87%, respectively.
Q & A Highlights
Q: What are the potential drivers for the robust 62% year-on-year growth in the Housing Finance business, and what is the sustainable growth outlook? A: Pankaj Gadgil, Managing Director and CEO of Aditya Birla Housing Finance Limited, explained that the growth is a result of consistent efforts over several quarters, driven by investments in distribution, digital platforms, and leveraging the ABC and ABG ecosystems. The company expects similar growth trajectories in the coming quarters.