Aditya Birla Capital on Thursday reported a 27% year-on-year increase in its consolidated net profit to Rs 530 crore for the third quarter of FY23, led by improvement in core operations.
The company’s consolidated revenue improved 31% year-on-year to Rs 5,886 crore in Q3FY23 on account of increase in lending operations and insurance business. The loan book improved 40% year-on-year to Rs 85,869 crore while gross premium from life and health insurance business increased 22% to Rs 4,328 crore in Q3FY23.
Net interest margin (NIM) of the NBFC business expanded by 41 basis points (bps) sequentially and 77 bps year-on-year to 7% as of December 31. The company’s cost of borrowing increased to 7.10% in Q3FY23 as compared to 6.74% a quarter ago.
Also read: Banks’ GNPAs in MSME loans decline to Rs 1.54 lakh crore: MSME ministry
The company’s NBFC operations saw its gross stage 3 assets declining by 156 bps sequentially and 491 bps year-on-year to 6.49% as of December 31. The provision coverage ratio on gross stage 3 loans was at 49.3%, unchanged from a quarter ago.
The housing finance business of the company saw an improvement of 25% year-on-year in disbursements to Rs 1,387 crore, with total loan book at Rs 12,874 crore. The average assets under management (AUM) of the mutual fund business stood at Rs 2.8 trillion in Q3FY23.