Mumbai: Aditya Birla Capital on Thursday reported lower-than-expected second quarter earnings due to the impact of deferred tax assets and higher credit costs.
Consolidated net profit stood at ₹256 crore for the three months ended 30 September compared with ₹186 crore in the year-ago-period. Overall loan book, including non-banking and housing finance, grew 4% year-on-year to ₹60,477 crore from ₹57,945 crore in the previous year.
Aditya Birla Finance, the NBFC business, reported a 32% increase in net profit to ₹273 crore at the end of September, excluding the impact of deferred tax assets. Loan book shrank for the second consecutive quarter to ₹48,400 crore due to de-growth in structured finance book. Net interest margins fell 11 bps quarter-on-quarter to 5.28%.
Aditya Birla Housing Finance saw 2.5 times growth in second quarter net profit to ₹33 crore due to a 22% growth in loan book.
Under Aditya Birla Life Insurance business, gross written premium grew 78% year-on-year to ₹315 crore, with retail business contributing 67%. The quarter marked steady growth momentum with individual first year premium growing at 20% following improving contribution from bancassurance partner HDFC Bank
The asset management business saw a 40% growth in profit after tax year-on-year to Rs148 crore. Growth was soft as domestic AUM growth remained flat and offshore AUM fell 10% year on year.