Aditya Birla Capital on Monday reported a 33% year-on-year rise in consolidated net profit at `812 crore for the March quarter due to a growth in its overall lending portfolio.
The company has two lending subsidiaries, Aditya Birla Finance and Aditya Birla Housing Finance. The lending portfolio rose 31% y-o-y to `1.2 trillion as on March 31, aided by a strong momentum across businesses. It rose 8% sequentially.
Aditya Birla Finance saw disbursements rise 16% y-o-y to Rs 18,123 crore in Q4FY24. Loans to retail, small and medium-sized enterprises and high net-worth individual customers constitute 67% of its loan portfolio. Gross stage 2 and 3 assets declined by 135 basis points (bps) y-o-y to 4.49% as of March 31.
Disbursements of Aditya Birla Housing Finance grew 64% y-o-y to Rs 2,933 crore in the quarter. The gross stage 2 and 3 assets fell 208 bps y-o-y to 2.91% as of March 31.
The company, in a post-results statement, said it continues to expand its MSME footprint through business-to-business platform Udyog Plus, which clocked disbursements of `500 crore. Assets under management at Udyog Plus have reached `250 crore as on March 31.
The company continues to expand its physical footprint with a pan-India presence of 1,474 branches across all businesses as of March 31. The branch expansion is targeted at driving penetration into tier 3 and tier 4 towns and new customer segments, it said.
Total non-lending assets under management rose 21% y-o-y to `4.4 trillion. This includes asset management, life insurance, and health insurance businesses. The total premium of the life insurance and health insurance business rose 18% y-o-y to `20,961 crore in FY24.
In the March quarter, the company approved the amalgamation of Aditya Birla Finance with Aditya Birla Capital. The proposed amalgamation will not only enhance the capital base of Aditya Birla Capital, but will also result in compliance with the Reserve Bank of India(RBI) scale-based regulations, which require mandatory listing of Aditya Birla Finance by September 30, 2025.
Following the merger, Aditya Birla Capital will be the surviving entity and get converted to an operating company from a holding company. The amalgamation is subject to regulatory and other approvals as may be required. The proposed amalgamation is expected to take 9-12 months to be completed.
The quarter also saw Aditya Birla Capital and Sun Life sell around 5% and 6.5% stake in Aditya Birla Sun Life AMC, respectively, through an offer for sale to meet the minimum public shareholding requirement by October. The sale has helped Aditya Birla Capital strengthen its balance sheet by enhancing the capital base by `570 crore, the company said.