Aditya Birla Sun Life Research Tear Sheet Q3 FY 2022

Aditya Birla Sun Life Asset Management Company Ltd is an Indianinvestment managing company registered under the Securities and Exchange Board of India. The company was founded in 1994. Services include Life insurance, Health insurance^, Vehicle insurance^, Travel insurance Investment managementand Mutual fund. The company serves 26 countries. It has its headquarter in Mumbai, Maharashtra India. The shares are traded on both BSE & NSE.

Key Financial Highlights

Operating Profit before Tax increased 53% YoY to Rs.2,302 million.

Profit after Tax grew by 27% YoY to Rs.1,862 million.

Equity MF QAAUM increased by 39% YoY to Rs.1,220 billion.

Operating Revenue grew 20% YoY to Rs.3,343 million.

Profit after Tax grew 27 per cent YoY to Rs.1,862 million.

Overall Business Performance

94%+ Customers onboarded digitally across businesses.  It has encountered 50%+ Improvement in assisted conversions in Health Insurance Telesales leveraging Co-browsing. The company has made 8.7 Mn Customer Interactions on Digital Channels. 86% policies renewed digitally in Life Insurance & Health Insurance. There is a 20%+ Reduction in cost per servicing active customer in Life Insurance leveraging Digital Channels.

NBFC performance summary

Disbursed Rs 6,622 Crores in Q3 contributed 69% of total disbursal. The total loan booking increased ↑9% y-o-y ; ↑4% q-o-q.  Overall Loan book estimated to grow by 7-9% q-o-q in Q4 FY 2022. The collection remains strong at 98.8%. Raised LT borrowing of Rs 5,929 Crores.  80% of overall loan book secured; Net Security cover: 1.8x. Branch count is 126 with 73% presence in Tier 3/4 cities; plan to expand to 150 branches by Mar ’22.

Conference Call Highlights

Management Updates

76% new portfolios created for digital transactions.

Over 69,000 KYD-compliant MFDs, 240+ National Distributors and 100+ Banks/Financial intermediaries serviced through 280+ locations.

Individual Monthly AAUM improved by 15% YoY to Rs.1,414 billion the Individual mix is at 47.9% of total AUM.

Return on Equity has been annualised at 36.8% for 9M FY 2022.