Aditya Birla Capital, the holding company of the financial services businesses of the Aditya Birla Group, reported a 23.1% year-on-year increase in its third quarter consolidated net profit to Rs 216.83 crore on the back of robust growth across its businesses. In the immediately preceding quarter, its net profit stood at Rs 226.61 crore, marginally higher due to a lower tax incidence. The company’s consolidated revenue, on a like-to-like basis, increased 26% over the prior year comparable quarter to Rs 3,325 crore in the October-December quarter, it said in a release. Aditya Birla Capital’s consolidated earnings before tax (EBT), on a like-to-like basis, increased 30% over the prior year comparable quarter to Rs 409 crore during the three-month period, it said. A sharp jump in segmental profits from the asset management business contributed significantly to this growth. Segmental profits from the asset management business increased 70% to Rs 114.8 crore from Rs 67.6 crore. A buoyant market in 2017 is expected to have helped boost the business.
The company’s key businesses include life insurance, asset management, private equity, corporate lending, structured finance, wealth management, broking (equity, currency and commodity), online personal finance management, housing finance, pension fund management and health insurance. The last, is a relatively new business for the group and is still to turn the corner. The health insurance business saw losses increase year-on-year to Rs 54.6 crore in the quarter from a loss of Rs 20.2 crore in the corresponding quarter of the previous year. Aditya Birla Capital was listed on the stock exchanges on September 1, 2017 as the culmination of the composite scheme of arrangement under which Aditya Birla Nuvo Limited (ABNL) merged with Grasim Industries Limited (Grasim), and the financial services undertaking was subsequently demerged into ABCL. The company said its total assets under management rose by 31% year-on-year to touch Rs 2,99,893 crore, while its lending book, including housing, rose by 41% year-on-year to Rs 46,522 crore.
Aditya Birla Finance, the largest business of the company, reported earnings before tax of Rs 289 crore, an increase of 29% from the year-ago period. It’s lending book increased by 33% year-on-year to Rs 39,770 crore. It reported gross NPA of 0.70% and net NPA of 0.47%. The company’s asset management arm Aditya Birla Sun Life AMC reported a 33% year-on year growth in its quarterly average assets under management at Rs 2,62,223 crore. Earnings before tax increased by 72% over the prior year comparable quarter to Rs 135 crore from Rs 78 crore. Aditya Birla Housing Finance doubled its loan book to Rs 6,752 crore from Rs 3,235 crore in the prior year comparable period, the company said. The quarterly earnings before tax increased to Rs 8 crore from Rs 4 crore in the prior year comparable period. The company saw lending to the affordable housing segment increase to Rs 150 crore.