Loan book shrank for the second consecutive quarter to  ₹48,400 crore due to de-growth in structured finance book (Mint file)
Loan book shrank for the second consecutive quarter to 48,400 crore due to de-growth in structured finance book (Mint file)

Aditya Birla Capital Q2 net profit rises 37% to 256 crore

  • Overall loan book, including non-banking and housing finance, grew 4% year-on-year to 60,477 crore
  • 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

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.

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