Net Profit Doubles to Rs 577 crore, reports Aditya Birla Capital

Pursuant to its financial results, Aditya Birla Capital Ltd (ABCL) recently announced its net profit that doubled to Rs. 577 crore in the quarter ending December 2021, its highest-ever quarterly profit. A year before, the net profit was Rs 289 crore in the same quarter. Also, ABCL reported that the consolidated revenue increased by 13% to Rs 6,054 crore in Q3 FY22, compared to Rs 5,352 crore in the same quarter of FY21.

As demonstrated in the image above, the company’s net profit of Rs. 577 crore is its biggest ever. The consolidated PAT of Rs. 161 crore is attributed to selling nearly 1% of stake in the AMC (asset management company) business via its IPO in October 2021, said ABCL.

ABCL states that its focus on creating scale, expanding its retail network, and delivering continuous profitability yields results. The active customer base has climbed to almost 31 million, a 46 percent year-on-year gain. Furthermore, the firm’s overall assets under management (AUM) increased by 16% to Rs 3.72 lakh crore across asset management, life insurance, and health insurance businesses.

ABCL reported that their overall lending book (NBFC and housing finance) increased by 7% to Rs 61,411 crore, making it a lending portfolio of scale. Gross premium (life and health) increased by 24% to Rs 9,236 crore in the nine months to December 2021, demonstrating scale in the insurance industry, ABCL added in a release.

Retail, SME (small and medium companies), and HNI (high net worth individuals) collectively account for 67% of the non-banking financing organisation’s overall lending book, according to the company’s statements.

The company’s future strategy is to maximise the value of its 31 million active customers while continuing to drive client growth at scale. Other areas for the company to focus on are leveraging technology and analytics to increase revenue per client, enhance customer experience, reduce expenses, and construct resilient and scalable systems.

In addition, compared to the Q2 results, achieving a 100% hike this year shows the promising growth of the firm, ABCL shared in the release.

This significant change can be further deciphered by analysing the following image that shows the graphical representation of the Q2 results.

Since July 2007, Ajay Srinivasan has been serving as the Chief Executive of Aditya Birla Capital, the holding company of the Aditya Birla Group’s financial services businesses.