Aditya Birla Capital on Monday reported a 10% year-on-year rise in its consolidated net profit to Rs 835 crore for the June quarter, boosted by a robust performance from its subsidiaries.
Consolidated revenue increased 10% to Rs 11,333 crore, including a gain of Rs 16 crore from sale of shares in Aditya Birla Sun Life AMC in Q1FY25.
On a standalone basis, the net profit rose 6% to Rs 676 crore while the net interest income grew 7% to Rs 1,869 crore. Net worth was at Rs 25,915 crore. The capital adequacy ratio stood at 18.11%.
Aditya Birla Capital is the holding entity for the Aditya Birla group’s financial services businesses.
Assets under management of the non-bank lender were up 22% to Rs 1.31 lakh crore. The net interest income grew 9% to Rs 1,859 crore.
Total disbursements rose 18% to Rs 15,851 crore, but declined 19% on a sequential basis.
Tighter underwriting
The management in the post-earnings analyst call said they are uncertainties in small-ticket unsecured loans. This book forms 1.3% of the overall unsecured book. “We have tightened our underwriting. That’s the only portfolio where we are slightly cautious at this point in time,” it said. Credit cost is expected to remain at 1.3% in FY26.
Subsidiaries
Aditya Birla Housing Finance’s disbursements rose 76% to Rs 5,404 crore and assets under management grew 70% to Rs 34,605 crore. Sequentially, the momentum in disbursements slowed down.
Aditya Birla Sun Life AMC reported a profit after tax of Rs 277 crore, up 18% on year.
Aditya Birla Life Insurance Co saw total premiums falling 10% to Rs 3,594 crore in the June quarter. Assets under management stood at Rs 1.04 lakh crore, an increase of 14% YoY.
In the health insurance business, gross written premiums were up 30% on year to Rs 1,357 crore. The market share increased by 200 basis points on year to 14.5% and the combined ratio improved to 111% in June quarter from 112% a year ago.
Shares of Aditya Birla Capital on Monday jumped 11.3% to Rs 279.80 on the National Stock Exchange.