Aditya Birla Capital Limited — Q4 FY24
Aditya Birla Capital delivered a strong Q4 FY24 with consolidated PAT up 41% YoY to INR 2,902 crore and revenue up 30% to INR 39,050 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.
63%Questions answered3Evaded / deflected12Questions auditedContradictedNumbers vs filing
Evasive
High priority
ROE guidance for next three years post merger
Asked by Nischint Chawathe, Kotak Institutional Equities
Management explicitly declined to provide ROE guidance despite direct request.
no number givenrefused guidance
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Question
So what kind of an ROE guidance would you give us for the next three years?
Rakesh Singh, CEO and Managing Director, Aditya Birla Finance
See, Nishant, right now, we are not making any ROE guidance. What we are focused on is that on each one of the businesses, we continue to improve our operating performance.
Partial answer
High priority
Rise in GNPA in consumer unsecured business
Asked by Nischint Chawathe, Kotak Institutional Equities
Attributed rise to denominator effect but did not provide static pool delinquency trends.
attributed to denominator effectno static pool data
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Question
We have seen a fairly sharp rise on the sequential and the year-on-year basis. So any color or any commentary on this?
Rakesh Singh, CEO and Managing Director, Aditya Birla Finance
If you look at that, it has gone from 2.2 to 2.9 and 2.2 to 2.8, but that's primarily on the reduction in the book. ... It's a denominator effect, and we haven't seen any increase in delinquency in personal and consumer.
Answered
Medium priority
Margin compression in life insurance due to distributor payouts
Asked by Nischint Chawathe, Kotak Institutional Equities
Clearly denied distributor payout impact and attributed to ULIP mix and GSEC rates.
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Question
Is it purely because of the increase in share of units, or would you also kind of say that payouts to distributors have gone up?
Kamlesh Rao, Managing Director and CEO, Aditya Birla Sun Life Insurance
It has no impact on margins because of any payout to the distributor that has gone up. ... Largely on two factors. One is that ULIP for the year went to 24%... and the fact that in Q4, the GSEC was lesser...
Partial answer
Medium priority
Details on acquired portfolio of INR 4,500 crore
Asked by Avinash Singh, Emkay Global
Described nature but did not disclose specific lenders or originators.
no specific lender namesgeneric description
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Question
If you can just help us understand about sort of what kind of a loan from what kind of a lenders or unitors you have acquired this portfolio.
Rakesh Singh, CEO and Managing Director, Aditya Birla Finance
So these are small-ticket loans against property. Primarily, that's the nature of the business, nature of the loans which we would have acquired. These would be seasoned portfolio where we do 100% sampling, and we cherry-pick the portfolio.
Evasive
Medium priority
Cost-income ratio trajectory for housing finance in FY25
Asked by Avinash Singh, Emkay Global
Spoke about operating leverage but gave no quantitative cost-income ratio target.
no specific ratio guidancedeferred to future
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Question
If you can sort of provide clarity or color on how these cost income ratios are going to behave over the FY 2025?
Pankaj Gadgil, CEO, Aditya Birla Housing Finance
The idea is as the book grows further, of course, the fixed costs will get apportioned towards the larger book. We'll get an operating leverage in times to come. And of course, then the ROE will stabilize further.
Partial answer
Medium priority
Breakdown of operating and economic variance in life insurance EV
Asked by Avinash Singh, Emkay Global
Gave overall unwind and operating variance contribution but not detailed components.
no detailed breakdown of operating variance components
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Question
If you can just help sort of a breakdown of your operating and economic variance and changing.
Kamlesh Rao, Managing Director and CEO, Aditya Birla Sun Life Insurance
So the 18.8% roughly is, yeah, unwind. Obviously, our operating variance has been positive for about contributing 1.5%, and it has been positive for the last three years consecutively.
Answered
High priority
Additional risk controls for 3X balance sheet growth
Asked by Manoj Bahety, Carnelian Asset Management
Provided specific measures: tightened underwriting, scorecards, collections infrastructure.
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Question
What kind of additional risk controls at a corporate level you have introduced which will tackle your balance sheet, which will be 3X of its size in the next few years.
Rakesh Singh, CEO and Managing Director, Aditya Birla Finance
Tightening of underwriting, tightening of our scorecards, also the collections infrastructure, and the capacity building which we have done in collections.
Answered
High priority
Path to profitability for health insurance
Asked by Manoj Bahety, Carnelian Asset Management
Gave a clear timeline and target (100% COR by FY26).
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Question
When can we expect this to start contributing on a bottom-line basis?
Mayank Bathwal, Managing Director and CEO, Aditya Birla Health Insurance
Yeah. So as I mentioned earlier and even Vijay mentioned that we're looking at 100% COR by FY 2026 in the next 24 months.
Answered
Medium priority
Change in distribution strategy for personal loans due to RBI norms
Asked by Manoj Bahety, Carnelian Asset Management
Clearly stated shift to in-house distribution and reduction in BNPL.
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Question
With RBI tightening norms on fintech partners, is there a significant change in our strategy and how we are dealing with the situation?
Rakesh Singh, CEO and Managing Director, Aditya Birla Finance
We are looking at in-house distribution for building our personal and consumer business. ... BNPL, you can see the numbers. That's come down significantly. It's almost negligible at this point in time.
Answered
High priority
Growth target for NBFC and HFC AUM for FY25
Asked by Anuj Singla, Bank of America
Provided a clear three-year doubling target, though not specific to FY25.
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Question
Have you articulated any numbers there?
Rakesh Singh, CEO and Managing Director, Aditya Birla Finance
We have given a guidance that we will double our loan book in three years. From March 2023 to 2026, we will double our loan book.
Evasive
High priority
NIM trajectory for FY25 given personal loan slowdown
Asked by Anuj Singla, Bank of America
Did not provide any quantitative NIM outlook, only a general statement.
no specific NIM guidancevague assurance
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Question
How should we see the NIMs trajectory maybe for FY 2025?
Rakesh Singh, CEO and Managing Director, Aditya Birla Finance
We should be able to manage both growth and margins.
Answered
Medium priority
Texture on acquired portfolio yields and product mix
Asked by Bhaskar Basu, Jefferies
Provided specific yield range for acquired portfolio.
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Question
If you could give a little more texture around these loans, what kind of yields do they generate?
Rakesh Singh, CEO and Managing Director, Aditya Birla Finance
The customer yield will be 11%-12% for these portfolios.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Health insurance profit of INR 88 crore in Q4 FY24 | ₹88 cr | ₹1,288 cr | Understated vs filing |
| Health insurance 42% CAGR growth over last three years | 42% | 30% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.