Double lending book in 3 years
Management expects to double the combined NBFC and housing finance loan book over the next three years, implying ~25% CAGR.
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Aditya Birla Capital · forward-looking guidance across the available source record.
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growth
NBFC NIM expansion to 7.5% in 2-3 years
NBFC net interest margin is targeted to reach 7.5% over the next 2-3 years, driven by product mix shift towards retail and SME.
Housing finance NIM range of 4.7%-5%
Housing finance NIM is expected to remain range-bound between 4.7% and 5% as cost of borrowings may increase.
Life insurance net VNB margin improvement
Life insurance net VNB margin improved to 11.8% in Q1 from 2.5% last year, with continued focus on product mix and productivity.
NBFC portfolio to grow at 25% CAGR over 2-3 years
Management reiterated confidence in achieving 25% compounded annual growth in NBFC loan portfolio over the next 2-3 years.
Life insurance VNB margin guidance of 18-20% for FY25
Despite Q1 VNB margin of 6.5%, management expects full-year VNB margins to be in the range of 18-20%.
Health insurance combined ratio target of 100% by FY26
Health insurance business guided to achieve a combined ratio of 100% by FY26, improving from 112% in Q1 FY25.
NBFC credit cost guidance of 1.5%
Management stated that credit cost for NBFC remains well within the stated guidance of 1.5%.
NBFC credit cost to remain around 1.3% for FY26
Management expects credit cost for the NBFC segment to remain in the similar range of 1.3% for the full fiscal year.
HFC ROA target of 2%-2.2% over next 3-8 quarters
Housing finance company aims to achieve ROA between 2% and 2.2% over the next three to eight quarters.
Life insurance net VNB margin to expand to 18%+ for FY26
Life insurance business maintains guidance to expand net VNB margins to 18%+ for the current fiscal year.
Life insurance individual FYP growth of 20%-25% for next 3 years
Life insurance business targets individual first year premium growth of 20% to 25% annually over the next three years.
NBFC book to double in three years, ROA to 3%
Management reiterated guidance to double NBFC loan book in three years and improve ROA to 3% through product mix shift and margin improvement.
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.
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.
NBFC portfolio CAGR of 25% over 2-3 years
Management reiterated confidence in growing the overall NBFC loan portfolio at a CAGR of 25% over the next two to three years.
Life insurance VNB margin of 17-18% for FY25
Despite H1 VNB margin of 7.4%, management expects full-year VNB margin to be in the 17-18% range, driven by product mix optimization and agency channel growth.
HFC portfolio to double in 18-24 months
Management guided that the housing finance portfolio is on track to double over the next 18-24 months, supported by digital and distribution investments.
Credit cost guidance of ~1.5% for NBFC
Management expects NBFC credit cost to remain range-bound around 1.5%, with current levels at 1.25%.
NBFC credit cost to remain at 1.2%-1.3% in FY26
Management expects credit cost to stay in the 1.2%-1.3% range for the full year, supported by improving asset quality.
HFC ROA target of 2%-2.2% in 6-8 quarters
Housing finance business aims to achieve ROA of 2%-2.2% over the next six to eight quarters, driven by operating leverage.
Life insurance net VNB margin above 18% in FY26
Despite GST exemption impact, management maintains guidance of net VNB margin exceeding 18% for FY26.
Health insurance combined ratio improvement in FY26
Health insurance business expects to improve combined ratio from 105% in previous year to below 105% in FY26.
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.
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.
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.
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.
Life Insurance VNB margin of 17-18% for FY25
Management expects full-year VNB margin to reach 17-18%, driven by product repricing and cost efficiencies.
NBFC credit cost below 1.5%
Credit cost guidance maintained at below 1.5%, with Q3 at 1.36%.
HFC ROA target of 2-2.1% in 18-24 months
Housing finance aims for ROA of 2-2.1% as operating leverage improves with scale.
Amalgamation of Aditya Birla Finance with ABCL by March 2025
The amalgamation is expected to be completed by 31st March 2025, subject to NCLT approval.
NBFC loan book growth of 24-25%
Management expects to double the NBFC loan book in three years, implying ~25% CAGR.
NBFC ROA expansion to ~2.5%
NBFC ROA (ex-labor code impact at 2.28%) is expected to expand to ~2.5% in the next 4-5 quarters.
Life insurance individual FYP CAGR of 20%+
Life insurance business targets individual first year premium CAGR of 20%+ over the next three years.
Double life insurance VNB in three years
Management aims to double absolute net VNB in three years while expanding VNB margins above 18%.
Double March 2023 loan portfolio by March 2026
Management remains confident of doubling the March 2023 NBFC loan portfolio by March 2026, implying a CAGR of ~26%.
NBFC credit cost within 1.5%
Credit cost for NBFC businesses is guided to be contained within 1.5% going forward.
Health insurance combined ratio of 100% by FY26
Health insurance business targets a combined ratio of 100% by FY2026, improving from 110% in FY24.
Life insurance top-line CAGR >20% over 3 years
Life insurance business aims to grow top line at a CAGR of more than 20% over the next three years, with VNB margin in 18%-20% range.
NBFC portfolio CAGR of 25% over three years
Management expects to double the NBFC loan book over the next three years, implying a CAGR of ~25%.
HFC ROA target of 2%-2.2% in 8-10 quarters
Housing finance aims to achieve ROA of 2%-2.2% within 8-10 quarters, driven by operating leverage.
Life insurance individual FYP CAGR of 20%-25% over three years
Life insurance business targets 20%-25% CAGR in individual first-year premium over the next three years.
Health insurance combined ratio below 100% at earliest
Health insurance aims to achieve combined ratio below 100% as per old accounting norms, and as per new norms shortly.
HFC AUM target of INR 1 lakh crore in 24-30 months
Aditya Birla Housing Finance aims to achieve AUM of INR 1 lakh crore within the next 24 to 30 months, supported by branch expansion and digital initiatives.
HFC ROA guidance of 2.1%-2.2% for FY27
Housing finance expects ROA in the range of 2.1% to 2.2% for FY27, driven by operating leverage and stable credit costs.
Life insurance individual FYP CAGR of 20%+ for next 3 years
Aditya Birla Sun Life Insurance targets a CAGR of over 20% in individual first year premium over the next three years, while maintaining VNB margins at 18%-20%.
NBFC credit cost guidance of 1.1%-1.2%
NBFC expects credit cost to remain in the range of 1.1% to 1.2% even as unsecured book grows, supported by a predominantly secured portfolio.