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Revenue
₹8,831 Cr
verified against source
Revenue YoY
22%
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 Q2 FY24 with consolidated revenue up 22% YoY to INR 8,831 crore and PAT up 44% YoY to INR 705 crore. The lending portfolio grew 41% YoY to INR 109,000 crore, driven by NBFC and HFC disbursement growth of 32% and 52% YoY respectively. Asset quality improved with NBFC gross stage 3 at 2.64% and HFC at 2.60%. The digital B2B platform Udyog Plus crossed 164,000 registrations. Life insurance VNB margins expanded 195 bps YoY to 14.2% in H1. Management guided for NBFC book doubling in three years with ROA improving to 3%, and life insurance VNB margins of 23%+ for FY24. Key risk: potential stress in small-ticket unsecured consumer loans, though management is proactively tightening underwriting and monitoring leverage.
Colored figures show movement against the previous available record.
Guidance to track
- Management reiterated guidance to double NBFC loan book in three years and improve ROA to 3% through product mix shift and margin improvement.
- Kamlesh Rao guided for net VNB margin of 23%+ for full year FY24, consistent with last year's exit margin.
- Mayank Bathwal expects combined ratio to normalize in Q3 FY24 as seasonality effects from group business growth subside.
Risks flagged
- Industry-wide concerns about rising delinquencies in sub-INR 50,000 loans, though management reports stable portfolio with proactive tightening.
- HFC yields declined sequentially due to competitive pressure and lag in cost of funds pass-through, though management expects stabilization.
- Largest bank partner degrew due to strategic shift to subsidiary, partially offset by new bank tie-ups; execution risk remains.
Key quotes
- We follow an omnichannel approach. Irrespective of the fact which channel the customer approaches, as far as our credit standards and underwriting standards are concerned, they're identical.
- Our committed guidance from this front is that we will double our book in the next three years, and we will improve our ROA to 3% in the next three years, with the change in the product mix and improvement of margins.
- We maintain our guidance of growth for the full year projections for this business of 24. We expect to deliver 23%+ net VNB margin in financial year 2024.
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