Aditya Birla Capital Q4 consolidated profit rises 35% to Rs 450 crore

Mumbai: Aditya Birla Capital Limited reported a consolidated profit after tax of Rs 609 Crore in Q4 FY23, an increase of 35% over Rs 450 crore in the corresponding period last year. Without the fair value gain related to the health insurance business, the net profit increase for FY23 would have been 33% year on year at Rs 2,057 Crore.

The company's consolidated revenue increased by 31% YoY to Rs 9,146 Crore in Q4 FY23 and 27% YoY to Rs 29,999 Crore in FY23.

The company said that its customer base stood at 3.8 crore as of March 31, 2023, and it opened 247 branches during the year, taking the total branch count to 1,295 as of March 31, 2023.

The group's loan book grew 40% to Rs 94,364 Crore on March 31, 2023. The group's insurance premium income grew 28% YoY to Rs 17,787 Crore in FY23.

Aditya Birla Capital Limited formed a wholly-owned subsidiary, Aditya Birla Capital Digital Limited, in March 2023, to develop an omni-channel Direct to Customer (D2C) platform, which serves existing customers, acquires new customers, and acts as a one-stop solution to deliver Protecting, Investing, Financing, and Advising (PIFA) solutions to customers.

The company launched INFINITE, the flagship start-up engagement programme, to co-create solutions for enhancing customer journeys and increasing operational efficiency.

The NBFC business of the company witnessed a 10% sequential and 46% YoY growth in the loan book to Rs 80,556 Crore as of March 31, 2023, backed by a 57% YoY growth in loans to retail, SME, and HNI customers.

Loans to retail, SME, and HNI customers constituted 67% of the total loan book as of March 31, 2023. The housing finance business grew by 36% YoY to Rs 1,790 Crore in Q4FY23. The loan book grew by 6% sequentially and 14% YoY to Rs 13,808 Crore on March 31, 2023.

The company's net interest margin expanded by 52 basis points YoY to 6.88% in Q4 FY23 and 60 basis points YoY to 6.84% in FY23. The provision coverage ratio on gross stage 3 loans grew by 320 basis points sequentially to 46.2% as of March 31, 2023. The return on assets was strong at 2.45% in FY23 compared to 2.30% in FY22, while the return on equity increased by ~416 bps YoY to 16.55% in Q4FY23 and ~289 bps YoY to 14.76% in FY23.