Aditya Birla Capital Ltd.(NSE: ABCAPITAL): Q3 FY23 Results Out; Total Income Rises 31% YoY

Aditya Birla Capital Limited (NSE: ABCAPITAL), a leading financial services provider, announced its Q3FY23 results and reported strong growth across its various business segments. The company’s consolidated revenue grew by 31% YoY to Rs 7,699 crore, driven by an increase in lending operations and insurance business. The loan book of the company improved by 40% YoY to Rs 85,869 crore, while gross premium from life and health insurance business increased by 22% to Rs 4,328 crore.

The net interest margin (NIM) of the NBFC business expanded by 41 basis points sequentially and 77 basis points YoY to 7% as of December 31st, 2022. However, the cost of borrowing increased to 7.10% in Q3FY23, compared to 6.74% in the previous quarter. The company’s NBFC operations saw a decline in gross stage 3 assets by 156 basis points sequentially and 491 basis points YoY to 6.49% as of December 31st, 2022.

The housing finance business of the company recorded a 25% YoY improvement in disbursements to Rs 1,387 crore and had a total loan book of Rs 12,874 crore. The mutual fund business had an average AUM of Rs 2.8 trillion in Q3FY23.

Aditya Birla Capital added approximately 1.4 million customers during the quarter, with a focus on granular growth across all businesses, and now has a total active customer base of approximately 43 million. The company launched a comprehensive B2B platform for the MSME ecosystem, which will provide lending and value-added services to help MSMEs manage and grow their business.

The company has also embarked on creating an omnichannel D2C platform to serve existing customers and acquire new customers in a seamless manner and has approved the formation of a separate wholly-owned subsidiary for this purpose. The consolidated PAT (excluding fair value and stake sale gains) grew by 27% YoY to Rs 530 crore, reflecting the company’s strong performance during the quarter.