Aditya Birla Financial Services Group records profitable growth in Q2
1st November, 2011
- ABFSG's consolidated profit before tax for Q2 stands at Rs.138 crore as against Rs.62 crore in the previous year; for the first half, profit before tax surges to Rs.315 crore.
- Consolidated revenues for the financial services businesses stands at Rs.1,680 crore for Q2, registering growth of 4 per cent (year-on-year). For the first half revenues are Rs.3,011 crore.
- The combined Assets Under Management (AUM) for Birla Sun Life Insurance (BSLI), Birla Sun Life Asset Management (BSLAMC) and Aditya Birla Private Equity (ABPE) as on September 30, 2011 stands at about Rs.88,300 crore.
- Birla Sun Life Insurance and Birla Sun Life Asset Management improve their industry rankings.
- Plans underway to enter infrastructure financing business.
Its key verticals including life insurance, asset management and NBFC saw good momentum on the back of a balanced product mix and strong client focus.
During the second quarter, ABFSG posted consolidated revenue at Rs.1,680 crore, up 4 per cent over the same period last year. For the first half of the current fiscal, revenues were Rs.3,011 crore compared with Rs.2,903 crore for the same period last year. Consolidated net profit for H1FY12 jumped to Rs.284 crore as against Rs.105 crore (before extraordinary losses) in the corresponding period last year.
The company's combined Assets Under Management (AUM) for BSLAMC, BSLI and ABPE at the end of Q2 FY12 was Rs.88,300 crore. For the first half of the current fiscal, earnings before tax stood at Rs.315 crore.
Mr. Ajay Srinivasan, Chief Executive - Financial Services, Aditya Birla Group, said, "The Financial Services business continued to strengthen its market position, as a significant non-bank financial services player, helped by its strong team, innovative approach and integrated business model. This enabled us to focus on balanced growth, building a business that is profitable and sustainable."
Following are some of the highlights of Q2FY12 (of the business divisions):
Birla Sun Life Insurance (BSLI):
- BSLI improved its ranking to become 4th among private sector players and increased its market share from 7.6 per cent to 8.7 per cent.
- In September 2011, a year after the new regulations came into play in the industry, new business premium of BSLI achieved year-on-year (Y-o-Y) growth of 58 per cent.
- During the quarter, earnings before tax of BSLI surged year-on-year from Rs.20 crore to Rs.97 crore. The growing in-force book, balanced product mix and better expense management drove bottom-line growth.
- The gross premium income of BSLI grew Y-o-Y by 6 per cent to Rs.1,533 crore with the renewal premium growing by 21 per cent to Rs.1,055 crore.
- The 13th month persistency ratio, a key measure of value creation, stood at 82 per cent as on 30th September 2011.
- Our non-ULIP portfolio has been strengthened and has contributed to 44 per cent of the individual new business as compared to 8 per cent in the second quarter of the previous year.
- During the quarter, BSLAMC moved one step up, to rank 4th in the industry, with a market share of 9 per cent.
- Market share in domestic equity average AUM increased quarter-on-quarter to 5.4 per cent.
- BSLAMC posted revenues of Rs.78 crore and earnings before tax of Rs.20 crore for the quarter.
- The NBFC business, grew its book size Y-o-Y by 24 per cent to Rs.2,500 crore.
- Revenue grew by 128 per cent on Y-o-Y basis from Rs.32 crore to Rs.73 crore.
- PBT increased by 130 per cent on Y-o-Y basis from Rs.11 crore to Rs.25 crore.
- Q-o-Q, book size grew by 27 per cent, revenue grew by 23 per cent and PBT grew by 153 per cent.
- Our first fund, viz., Aditya Birla Private Equity - Fund I, has deployed about 40 per cent of its fund size of Rs.881 crore.
- Aditya Birla Money continued to enhance its market share in commodities and retail equity segments.
- The company entered into an Memorandum of Understanding with the Allahabad Bank for offering our online trading platform for their customers.
- Aditya Birla Money Mart was ranked as the 3rd largest corporate mutual fund distributor in India, based on closing AUA. (Source: August CAMS report)
- Wrote premium of Rs.58 crore as against Rs.40 crore last year.
- Recorded revenue growth of 124 per cent Y-o-Y.
The Aditya Birla Financial Services Group (ABFSG) has built a significant presence across its verticals, viz., life insurance, asset management, NBFC, private equity, broking, wealth management and distribution and general insurance advisory services.
The seven companies representing Aditya Birla Financial Services Group are Birla Sun Life Insurance Company Ltd., Birla Sun Life Asset Management Company Ltd., Aditya Birla Finance Ltd., Aditya Birla Capital Advisors Pvt. Ltd., Aditya Birla Money Ltd., Aditya Birla Money Mart Ltd and Aditya Birla Insurance Brokers Ltd. ABFSG is committed to being a leader and role model in a broad based and integrated financial services business. Its seven lines of businesses, with about 5.5 million customers manages assets worth about Rs.88,300 crore approximately and prides itself for having a talent pool of about 15,000 committed employees. ABFSG has its wings spread across more than 500 cities in India through over 1,700 points of presence and about 200,000 channel partners. This allows ABFSG to offer its customers virtually anything under financial services except a savings or current account. With revenue of over US$1.4 billion (in 2010-2011) ABFSG is a significant non-bank player.
ABFSG is a part of Aditya Birla Nuvo Ltd (ABNL), a US$4 billion conglomerate having leadership position across its manufacturing as well as services sector businesses. ABNL is a part of the Aditya Birla Group, a US$35 billion Indian business house operating in 33 countries across the globe.