Aditya Birla Capital's consolidated net profit up by 51% in June quarter

The company's asset quality improved, with gross non-performing assets (NPAs) falling to 2.6% in June 2023, compared to 3.7% a year earlier

Aditya Birla Capital Ltd's (ABCL’s) consolidated net profit saw an increase of 51 per cent year-on-year (YoY) to Rs 649 crore for the quarter ended in June 2023 (Q1 FY23).

The company's consolidated revenue grew by 39 per cent YoY to Rs 8,144 crore, up from Rs 5,862 crore in the quarter ended June 2022. ABCL, a holding entity for the Aditya Birla group's financial services businesses, including lending, mutual funds, and insurance, saw its stock close 3.03 per cent lower at Rs 190.1 per share on the BSE.

ABCL stated that its overall lending portfolio, which includes its non-banking finance company and housing finance unit, expanded by 43 per cent YoY to Rs 1.0 trillion at the end of June 2023.

The net interest income (NII) of the non-banking financial company increased by 59 per cent YoY to Rs 1,433 crore, and its net interest margin (NIM) improved by 43 basis points to 6.98 per cent.

The company's asset quality improved, with gross non-performing assets (NPAs) falling to 2.6 per cent in June 2023, compared to 3.7 per cent a year earlier. Capital adequacy stood at 16 per cent, with Tier-I at 13.6 per cent at the end of June 2023.

The total assets under management (AUM) of the company, which includes mutual funds, life insurance, and health insurance, increased by 9 per cent YoY to Rs 3.9 trillion.

As of June 30, 2023, Aditya Birla Capital has an extensive pan-Indian presence with 1,331 branches across all its businesses. The company aims to increase its branch expansion to drive penetration into Tier-III and -IV towns and reach new customer segments.