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Revenue
₹8,144 Cr
verified against source
Revenue YoY
39%
reported change
EBITDA
Pending
latest reported figure
Source
screener in partial
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
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. The NBFC arm led growth with a 65% YoY surge in disbursements, driving AUM to INR 85,891 crore, while the housing finance business saw disbursements rise 83% YoY. Asset quality improved across segments, with NBFC gross stage 3 declining to 2.8%. The life insurance business posted a net VNB margin of 11.8%, up 935 bps YoY. Management guided to double the lending book in three years and expand NBFC NIMs to 7.5%. Key risks include rising unsecured loan exposure and potential asset quality stress in personal loans, though management remains confident in risk-calibrated growth.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects to double the combined NBFC and housing finance loan book over the next three years, implying ~25% CAGR.
- 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 is expected to remain range-bound between 4.7% and 5% as cost of borrowings may increase.
- Life insurance net VNB margin improved to 11.8% in Q1 from 2.5% last year, with continued focus on product mix and productivity.
Risks flagged
- Personal and consumer loans now constitute 20% of NBFC AUM and 36% of disbursements, with potential asset quality risks if economic conditions weaken.
- Management is evaluating FLDG arrangements with digital partners, but current credit costs sit on the balance sheet; any adverse regulatory changes could impact profitability.
- Health insurance combined ratio stood at 117% in Q1, indicating underwriting losses, though management expects normalization in coming quarters.
- Housing finance operating expenses rose sharply due to technology investments, with cost-to-asset at peak levels; operating leverage may take time to materialize.
Key quotes
- We follow one ABC, one P&L approach to focus on quality and profitable growth by leveraging data, digital, and technology.
- Our forward guidance is that the quality of our book will get better across the 13 to the 61st month persistency from current levels.
- We will continue to build a granular portfolio and enhance our retail and SME segment mix.
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