Aditya Birla Capital Q2: Net profit jumps 42% to ₹1,001 crore, revenue up 36%
Aditya Birla Capital reported a 42% YoY increase in net profit for Q2FY25, reaching ₹1,001 crore. Total revenue climbed 36% to ₹12,007 crore, boosted by a ₹167 crore gain from selling its stake in Aditya Birla Insurance Brokers.
Aditya Birla Capital posted strong earnings for the quarter ended September 2024 (Q2FY25). The company's net profit rose 42 percent year-on-year (YoY) to ₹1,001 crore as against ₹705 crore in the year-ago period. The consolidated profit after tax includes gain of ₹167 crore on sale of entire stake of 50 percent in Aditya Birla Insurance Brokers Limited
Meanwhile, its total revenue from operations also climbed around 36 percent (YoY) to ₹12,007 crore versus ₹8,831 crore in Q2FY24.
The overall lending portfolio, combining both NBFC and HFC segments, expanded by 27 percent year-on-year and 8 percent sequentially, reaching ₹1,37,946 crore as of September 30, 2024. The total AUM across AMC, life insurance, and health insurance segments saw a 24 percent year-on-year increase and 9 percent sequential growth, amounting to ₹5,01,152 crore as of September 30, 2024. Additionally, total premiums in life and health insurance grew by 29 percent year-on-year to ₹10,828 crore in H1 FY25.
Segment-wise
In Q2 FY25, the company's NBFC business showed solid performance across key metrics. Disbursements rose by 17 percent year-on-year and surged 44 percent sequentially to ₹19,322 crore, while AUM increased 23 percent year-on-year and 7 percent sequentially, reaching ₹1,14,710 crore. Loans to Retail, SME, and HNI customers made up 65 percent of the total portfolio. Profit before tax climbed 15 percent year-on-year to ₹844 crore, with a return on assets at 2.34 percent and return on equity at 15.56 percent. Credit costs showed improvement, reducing by 18 basis points sequentially from 1.43 percent to 1.25 percent. Additionally, the gross Stage 2 and 3 ratio improved by 100 basis points year-on-year and 21 basis points sequentially, reaching 4.24 percent.
Meanwhile, its Housing Finance business posted notable growth, with disbursements soaring by 113 percent year-on-year and 31 percent sequentially to ₹4,010 crore in Q2FY25. AUM also saw a substantial increase, rising 51 percent year-on-year and 14 percent sequentially to ₹23,236 crore. Profit before tax grew 7 percent year-on-year and 22 percent sequentially, reaching ₹104 crore. Return on assets stood at 1.53 percent, while return on equity was 11.54 percent. The gross Stage 2 and 3 ratio showed improvement, decreasing by 218 basis points year-on-year and 42 basis points sequentially to 2.22 percent.
In Q2 FY25, the Asset Management business achieved a 9 percent sequential and 23 percent year-on-year rise in mutual fund quarterly average assets under management (QAAUM), reaching ₹3,83,309 crore, with equity assets making up 47.1 percent. Equity QAAUM grew by 39 percent year-on-year to ₹1,80,658 crore, while individual monthly average AUM rose by 28 percent to ₹2,03,391 crore. SIP flows in September 2024 saw a robust 47 percent increase, totaling ₹1,425 crore. Profit before tax climbed 42 percent year-on-year to ₹335 crore.
For the Life Insurance segment in H1 FY25, individual first-year premium (FYP) grew by 33 percent year-on-year to ₹1,578 crore, with group new business premiums rising by 45 percent to ₹2,834 crore. Renewal premiums increased 12 percent year-on-year to ₹3,942 crore. Persistency metrics improved, with 13th-month persistency reaching 88 percent and 61st-month at 67 percent in September 2024.
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