Aditya Birla Capital Q3Fy23
Aditya Birla Capital's consolidated PAT grows 27 pc y-o-y to Rs 530 cr
Mumbai/IBNS: Aditya Birla Capital reported a net profit of Rs 530 crore for the quarter ended December 2022, up 27 percent year-on-year compared to Rs 416 crore recorded in the same quarter of last year.
The Consolidated Revenue of the Company grew 31%, year on year, to Rs. 7,699 crore.
The company added around 1.4 million customers during Q3 FY23 taking the total customer base to approx. 43 million as of December 31, 2022.
It opened 62 branches during Q3 FY22 taking the total branch count to 1,220 as of December 31, 2022.
The company’s branch expansion is targeted at driving penetration into tier 3 and tier 4 towns and new customer segments.
The strong momentum across businesses led to a 40% year-on-year growth in the overall lending book (NBFC and HFC) to Rs 85,869 crore as on December 31, 2022 and a 22% year-on-year growth in the gross premium (Life and Health Insurance) to Rs. 4,328 Crore in Q3 FY23.
About its NBFC business, Aditya Birla Capital said its Net interest margin (NIM) expanded by 41 basis points sequentially and 77 basis points year-on-year to 7.00% in Q3 FY23. Overall loan book with loans to Retail, SME, and HNI customers increasing by 59 percent YoY. As of December 31, 2022, retail, SME, and HNI loans accounted for 66 percent of total loan book, the company's statement also added.
Asset quality continued to improve with gross stage 2 and 3 assets declining by 156 basis points sequentially and 491 basis points year-on-year to 6.49% as on December 31, 2022. The provision coverage ratio on gross stage 3 loans remained healthy at 49.3% as on December 31, 2022. Return on assets was healthy at 2.4% in Q3 FY23, it said.
In its Housing Finance business, the company said, Net interest margin (NIM) expanded by 22 basis points sequentially and 106 basis points year-on-year to 5.35% in Q3 FY23. Its loan book grew by 11% year-on-year to Rs.12,874 Crore as on December 31, 2022.
The company follows a ‘Digital First Approach’ for product innovation, direct acquisition, seamless onboarding and best-in-class service delivery.
A total of 56% of personal loan disbursements in Q3 FY23 were done digitally. 84% of customer service interactions in the NBFC business were done digitally in Q3 FY23.
About 78% of life insurance renewals were done digitally and 88% of life insurance customer requests were serviced digitally in 9M FY23.
In Health Insurance business, all the distributors are now onboarded digitally, and 85% business was delivered by auto-underwriting in 9M FY23.
Keeping in mind the digital-first approach and to further strengthen customer propositions, the company has embarked on creating an omnichannel D2C platform to serve existing customers and acquire new customers in a seamless manner.
The company’s board has approved the formation of a separate wholly-owned subsidiary for this purpose.
Through the platform, the Company will distribute Protecting, Investing, Financing and Advising (PIFA) products of companies of Aditya Birla Capital through various touchpoints such as website, app, branch and virtual engagement in an integrated manner.
This will meet the financial needs of customers and give them complete flexibility to choose the channel for interaction by providing ‘One Experience’ across channels.
The platform will also integrate a payments stack and value-added services to enhance customer experience and brand recall.
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