Aditya Birla Capital Limited — Q1 FY24
Aditya Birla Capital delivered a strong Q1 FY24 with consolidated PAT up 51% YoY to INR 649 crore and revenue up 39% YoY to INR 8,144 crore.
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
68%Questions answered1Evaded / deflected11Questions auditedContradictedNumbers vs filing
Answered
High priority
What growth target for lending book in FY24 and beyond?
Asked by Anuj Singla, Bank of America
Management gave a clear growth target of doubling in 3 years, implying ~25% CAGR.
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Question
When you look at the growth target for FY 2024, and the, you know, beyond that, what kind of number should we be, you know, looking for?
Rakesh Singh, Executive Director and CEO, NBFC
We have, we have stated that we will double our book in the next 3 years. So, so that means 25% plus the kind of growth is what we are strategically looking at.
Partial answer
High priority
Can NIM levels sustain despite funding cost pressures?
Asked by Anuj Singla, Bank of America
Management gave a long-term margin target but did not directly answer whether current NIMs will sustain this year.
no specific near-term NIM guidancedeferred to long-term target
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Question
During the course of the year, do we expect this NIM levels to sustain at the current levels despite the funding cost pressures?
Rakesh Singh, Executive Director and CEO, NBFC
We are looking at expansion of margins to 7.5% over the next 2-3 years. With the change in the product mix, we will achieve that.
Evasive
Medium priority
What is driving the increase in GS2+3 for personal/consumer loans?
Asked by Anuj Singla, Bank of America
Analyst asked for specific cohort color; management gave generic stability statement without specifics.
no cohort details givengeneral reassurance only
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Question
Is it possible to give some kind of color on the customer cohorts which are driving this?
Rakesh Singh, Executive Director and CEO, NBFC
In terms of if we look at the forward flows, I think it's very stable, and it's in the range which we have guided. It's within the guard rails...
Answered
Medium priority
Are FLDG arrangements being triggered for personal loans?
Asked by Abhijit Tibrewal, Motilal Oswal
Management clearly stated no FLDG has been triggered and explained regulatory context.
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Question
Have you also had similar experiences where FLDG arrangements are getting triggered?
Rakesh Singh, Executive Director and CEO, NBFC
Right now, we have not dipped into any FLDG. We didn't have any FLDG. The guidelines which came in December of 2022 by RBI did not allow the digital lending guidelines...
Answered
High priority
What is the target mix for personal and consumer loans?
Asked by Abhijit Tibrewal, Motilal Oswal
Management gave a clear target product mix breakdown.
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Question
What is the comfort level where you want to keep personal and consumer loans?
Vishakha Mulye, CEO, Aditya Birla Capital
Your ultimate product mix question today, retail and consume- retail, consumer and SME is around 67% of our portfolio, balance is corporate. Going forward... consumer personal loans and the SMEs or the small business loans, will be around 75%, and the corporates will be around 25% over the next three years.
Answered
Medium priority
What is the disbursement mix by channel for NBFC?
Asked by Avinash Singh, MK Global
Management provided specific channel mix percentages for overall and segments.
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Question
If you can just help with some kind of data around, you know, your disbursement mix via direct and ecosystem, particularly in the retail and consumer and unsecured SME.
Rakesh Singh, Executive Director and CEO, NBFC
If you look at our direct sourcing at a company level is 45% is direct, 23% comes through the DSAs, and 42% of the business comes through the digital. This is the mix at the company level.
Partial answer
Medium priority
How will housing finance maintain profitability with prime mix?
Asked by Avinash Singh, MK Global
Management discussed mix strategy but did not quantify how profitability will be maintained.
no specific margin guidancegeneral strategy talk
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Question
How are you going to sort of, you know, maintain your profitability here? Because, I mean, housing to prime, is a very, very kind of a thin margin business...
Pankaj Gadgil, MD and CEO, Aditya Birla Housing Finance Limited
I think the strategies we have, you know, kind of articulated earlier also is maintain the right, you know, mix. We've been speaking about the right balance of the value segment and the growth segment.
Partial answer
Medium priority
What is the deployment plan for the INR 3,000 crore capital raised?
Asked by Avinash Singh, MK Global
Management gave broad priorities but no quantitative deployment plan.
no specific allocation numbersvague on health insurance partner
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Question
What sort of a deployment plan? Of course, the two lending businesses will require, but likely health insurance business will also require some capital...
Rakesh Singh, Executive Director and CEO, NBFC
First thing that the majority allocation of capital will help towards the lending businesses, depending on the market opportunity. Secondly, whatever growth capital requirement will be there from our LI and HI businesses, we will provide that.
Partial answer
Medium priority
What is the retail new business growth YoY for health insurance?
Asked by Dipanjan Ghosh, Citigroup
Management gave overall retail growth but did not provide the requested new business breakdown.
did not split new business vs renewalsdeclined follow-up
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Question
If you can quantify your retail new business growth on a year-over-year basis, that would be great.
Mayank Bathwal, CEO, Aditya Birla Health Insurance
I think our overall retail business grew at about 17% YoY.
Partial answer
High priority
What drove VNB margin movement in life insurance?
Asked by Dipanjan Ghosh, Citigroup
Management gave qualitative drivers but did not quantify the contribution of each factor.
no quantitative bridge providedonly qualitative factors
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Question
If you can give the work of your VNB margin movement over the last trailing 12 months between product mix, volumes, or assumption changes...
Pankaj Gadgil, MD and CEO, Aditya Birla Housing Finance Limited
For the VNB of the 1st quarter is largely driven by a product mix strategy. Also, it is driven by a strategy of a significantly larger productivity...
Answered
High priority
Is 0.5% credit cost the new normal for NBFC?
Asked by Ramesh, ICICI
Management confirmed credit cost will be in the 0.5% range.
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Question
Is it fair to assume that, given the, you know, book mix change, given a 0.5% grade cost is the new normal for us?
Pankaj Gadgil, MD and CEO, Aditya Birla Housing Finance Limited
Trade cost, yes, we have said that it would be in this range, with the change in the product mix and unsecured business which has grown over the last couple of years.
Declined
Low priority
What is the monthly run rate with Paytm Postpaid?
Asked by Shubhranshu Mishra, PhillipCapital
Management explicitly declined to provide the requested data.
refused to share partner-specific data
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Question
What is the run rate on a monthly basis or maybe on a quarterly basis, we can speak on that, and any kind of FLDG we have with Paytm on that particular piece?
Rakesh Singh, Executive Director and CEO, NBFC
We don't discuss individual, specific partner run rates.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Retail business grew 17% YoY in health insurance | 17% | 39% | Understated vs filing |
| Housing finance grew 19% YoY in Q1 | 19% | 39% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.