Aditya Birla Capital Q3 consolidated net doubles to Rs 577 cr

Improved interest margins; AMC stake sale boost bottomline

Aditya Birla Capital Ltd’s (ABCL) consolidated net profit doubled, year on year, to Rs 577 crore in quarter ended December 2021 (Q3Fy22) on improvement in interest margins in lending activity and gains for sale of stake in mutual fund entity.

It had reported net profit of Rs 288 crore in the same quarter last year (Q3FY21).

ABCL, financial services arm of Aditya Birla group, said consolidated PAT includes net gain of Rs 161 crore from sale of about one per cent stake in the Asset Management Company through its Initial Public Offering in October 2021.

ABCL shares closed one per cent lower at Rs 124.85 per share on BSE.

The overall lending book (NBFC and Housing Finance) grew seven per cent YoY to Rs 61,411 crore, making it a lending portfolio of scale. NBFC arm’s loan portfolio expanded by nine per cent YoY Rs 49,805 crore. Its net interest margin expanded by 100 basis points YoY at 6.24 per cent on growth in retail and SME segments and lower cost of borrowing, the company said.

Under its housing finance arm, the loan book stood at Rs 11,606 crore. Its Net interest margin rose by 75 basis points YoY at 4.21 per cent in Q3FY22, it added.

The company’s focus on building scale, growing its retail base and delivering consistent profitability, continues to yield results. The retailisation strategy has led to the active customer base growing 46 per cent YoY to Rs 31 million.