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Aditya Birla Capital Limited — Q3 FY24
Aditya Birla Capital delivered a strong Q3 FY24 with consolidated revenue up 29% YoY to ₹9,997 crore and PAT up 39% YoY to ₹736 crore, driven by robust lending growth (NBFC AUM +35% YoY) and disciplined cost management.
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Aditya Birla Capital delivered a strong Q3 FY24 with consolidated revenue up 29% YoY to ₹9,997 crore and PAT up 39% YoY to ₹736 crore, driven by robust lending growth (NBFC AUM +35% YoY) and disciplined cost management. The NBFC business saw a 41% YoY PAT increase to ₹572 crore, with ROE expanding to 16.96%. Management proactively tightened underwriting in small-ticket consumer loans, reducing the BNPL portfolio from ₹4,100 crore to ₹2,700 crore, and expects credit losses to remain stable at ~1.5%. The housing finance arm crossed ₹100 crore PBT for the first time, while the AMC business reported 26% YoY PAT growth. The life insurance net VNB margin held at 15.6%, and health insurance losses are expected to narrow in Q4. Guidance includes doubling the NBFC portfolio in three years and launching a D2C app next month. Key risk: rising cost of funds could pressure NIMs if competitive intensity limits pass-through.
आदित्य बिड़ला कैपिटल ने तीसरी तिमाही में शानदार प्रदर्शन किया। कंपनी की कुल आय 29% बढ़कर ₹9,997 करोड़ और मुनाफा 39% बढ़कर ₹736 करोड़ हो गया। इसकी वजह कर्ज देने में तेजी और खर्चों पर नियंत्रण रहा। कंपनी ने छोटे कर्जों में सावधानी बरतते हुए 'अब पहले भुगतान बाद में' वाले पोर्टफोलियो को ₹4,100 करोड़ से घटाकर ₹2,700 करोड़ किया। बुरे कर्ज का अनुपात 1.5% पर स्थिर रहने की उम्मीद है। हाउसिंग फाइनेंस ने पहली बार ₹100 करोड़ से अधिक मुनाफा कमाया। कंपनी तीन साल में कर्ज पोर्टफोलियो दोगुना करने और अगले महीने एक नया ऐप लॉन्च करने की योजना बना रही है। मुख्य जोखिम: ब्याज दरें बढ़ने से मुनाफे पर दबाव पड़ सकता है।
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NBFC AUM
₹98,603 crore
+35% YoY
NBFC loan portfolio grew 35% year-on-year to ₹98,603 crore as of December 2023.
NBFC ROE
16.96%
+186bps YoY
NBFC return on equity expanded 186 basis points year-on-year to 16.96% in Q3.
HFC Disbursements
₹2,015 crore
+49% YoY
Housing finance disbursements grew 49% year-on-year to ₹2,015 crore in Q3.
Consumer Loan Portfolio (BNPL)
₹2,700 crore
-34% QoQ
BNPL portfolio reduced 34% sequentially from ₹4,100 crore to ₹2,700 crore due to tightened underwriting.
What Changed vs Last Quarter
NEW
D2C app launch in one month
The direct-to-consumer mobile app will go live in closed user group within one month, enabling new customer acquisition and holistic financial solutions.
NEW
NBFC credit loss to remain at ~1.5%
Management expects total credit loss in the NBFC portfolio to remain at similar levels (1.5% in Q3) going forward.
NEW
Health insurance profit in Q4, full-year loss lower than FY23
Health insurance expects a profit in Q4 and full-year FY24 loss to be lower than last year, with combined ratio improving.
UPDATED
Double NBFC portfolio in three years
Management expressed confidence in doubling the NBFC loan portfolio over the next three years, leveraging Udyog Plus, ABG ecosystem, and branch expansion.
DROPPED
Life insurance VNB margin of 23%+ for FY24
Kamlesh Rao guided for net VNB margin of 23%+ for full year FY24, consistent with last year's exit margin.
DROPPED
Health insurance combined ratio to normalize in Q3
Mayank Bathwal expects combined ratio to normalize in Q3 FY24 as seasonality effects from group business growth subside.
NEW RISK
Rising cost of funds
Cost of borrowing increased 7bps QoQ for NBFC and 5bps for HFC; further increases could pressure NIMs if competitive intensity limits pass-through.
NEW RISK
Regulatory tightening on unsecured lending
RBI's increased risk weights on personal and consumer loans could impact growth and capital adequacy; NBFC CAR improved to 16.67% but remains a watch item.
NEW RISK
Competition in secured lending
Banks are increasingly competing in secured loans (mortgages, LAP), which could pressure yields and market share.
NEW RISK
Health insurance loss trajectory
Health insurance net loss widened to ₹270 crore in 9M FY24 from ₹217 crore YoY; profitability improvement depends on Q4 performance and sustained loss ratio control.
RISK GONE
Stress in small-ticket unsecured consumer loans
Industry-wide concerns about rising delinquencies in sub-INR 50,000 loans, though management reports stable portfolio with proactive tightening.
RISK GONE
Competition compressing housing finance yields
HFC yields declined sequentially due to competitive pressure and lag in cost of funds pass-through, though management expects stabilization.
RISK GONE
Dependence on bank partnerships for life insurance growth
Largest bank partner degrew due to strategic shift to subsidiary, partially offset by new bank tie-ups; execution risk remains.
🤫 Topics management stopped discussing
Mentioned in Q1 FY24, Q2 FY24
Mayank Bathwal expects combined ratio to normalize in Q3 FY24 as seasonality effects from group business growth subside.
Mentioned in Q1 FY24, Q2 FY24
Kamlesh Rao guided for net VNB margin of 23%+ for full year FY24, consistent with last year's exit margin.
Mentioned in Q1 FY24, Q2 FY24
Management reiterated guidance to double NBFC loan book in three years and improve ROA to 3% through product mix shift and margin improvement.
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Guidance and risk preview
Management expressed confidence in doubling the NBFC loan portfolio over the next three years, leveraging Udyog Plus, ABG ecosystem, and branch exp...
Cost of borrowing increased 7bps QoQ for NBFC and 5bps for HFC; further increases could pressure NIMs if competitive intensity limits pass-through.
View Risks →