AB Capital Q4 net doubles to ₹208 crore

Our Bureau Mumbai | Updated on May 08, 2018 Published on May 08, 2018

Board approves ₹3,500-crore mop-up through financial instruments

Aditya Birla Capital has almost doubled its net profit to ₹208 crore (₹109 crore) in the March quarter on the back of strong performance in its NBFC and mutual fund businesses.

The recently-listed financial arm of the Aditya Birla Group registered a 25 per cent increase in revenue at ₹4,203 crore (₹3,353 crore) with the enhanced focus in tier-II and –III cities.

The board of directors have approved an enabling resolution to raise ₹3,500 crore through various financial instruments, if there is a need for capital.

Net profit in the financial year ended March was up 44 per cent at ₹824 crore (₹573 crore), while revenue increased 21 per cent to ₹13,428 crore (₹11,071 crore).

The average assets under management (AUM) in the MF business was up 27 per cent to ₹2.67 lakh crore in FY18. With strong focus on retail and high-margin assets, Birla mutual fund’s equity AUM increased 73 per cent to ₹86,450 crore and the monthly SIP book doubled to ₹956 crore.

Health insurance biz

The lending book in the NBFC business was up 25 per cent at ₹43,242 crore. The loan book of the housing finance arm doubled to ₹8,137 crore (₹4,136 crore) and reported earnings before tax of ₹24 crore against a loss of ₹15 crore in the previous year.

In its first year of operation, the health insurance business recorded a gross written premium of ₹243 crore, covering one million lives. It has empanelled 4,200 hospitals across the country. It also established five bank assurance partnerships and on-boarded 15,700 agents.

The company plans to enhance its smaller city reach to 50 by July with additional reach to 22 cities.

Ajay Srinivasan, CEO, Aditya Birla Capital, told BusinessLine that the company would continue to focus on tier-II and –III cities as the financial services penetration in smaller towns is still low.

“We will be opening 33 new branches this fiscal, taking the total branch count to 84. With the target to focus on affordable house lending in smaller cities, the average lending ticket size would come down below ₹27 lakh,” he added.

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Published on May 08, 2018
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