Aditya Birla Financial Services Group sustains strong growth in first quarter
16th August, 2011
Highlights for the quarter:
- Aditya Birla Financial Services Group's combined revenues for Q1FY12 at Rs.1330 crores, recording growth of 4 per cent Y-o-Y
- Market share of Birla Sun Life Insurance rises to 8.8 per cent for Q1FY12 from 8.1 per cent in Q1FY11
- Birla Sun Life Asset Management Q1FY12 PBT stood at Rs30 crore, registering growth of 53 per cent over previous quarter Q4 FY11. Its market share at 9.1 per cent for Q1FY12 grew from 8.5 per cent for Q1 FY11
- Aditya Birla Money Mart is ranked as the 4th largest corporate distributor in terms of Assets Under Advice (AUA), as on 30th June 2011 (Source: CAMS)
- Aditya Birla Finance Ltd revenues has more than doubled for the quarter ended June 2011 vs corresponding period last year; an increase of 139 per cent on Y-o-Y basis
|Revenue (Rs. crore)||1,330||1,283|
|PBT (Rs. crore)||177||78|
|AUM (Rs. crore)||92,259||89,395|
Its combined Assets Under Management (AUM) for BSLAMC, BSLI and ABPE at the end of Q1FY12 was Rs.92,259 crores v/s Rs.89,395 crores in Q1FY11.
PBT increased by 2.5 times from Rs.78 crores in Q1FY11 to Rs.177 crores in Q1 of the current fiscal.
Commenting on ABFSG's Q1FY11-12 performance, Mr. Ajay Srinivasan, Chief Executive - Financial Services, Aditya Birla Group, said, "The results reflect a strong start to the new financial year and endorse the success of our business strategy of pursuing balanced growth. The quarter saw our businesses continuing to build on efficiencies, distribution reach and product innovation."
He further added, "Even in an environment of considerable uncertainty and challenges, the business has delivered healthy growth."
Birla Sun Life Insurance
- BSLI achieved a PBT of Rs.144 crores in Q1FY12, vis-a-vis Rs.9 crores in Q1 of the previous year. This was primarily driven by the growing size of in-force book, balanced product mix, lower new business strain and better expense management.
- While the private sector's weighted new business premium de-grew by 39 per cent in Q1, BSLI reported the 2nd lowest de-growth among the top seven private life insurers. Its market share among private players increased from 8.1 per cent in Q1FY11 to 8.8 per cent for Q1FY12.
- The company's gross premium income grew by 4 per cent to Rs.1,183 crores
- The new business premium income was Rs.322 crores
- The non ULIP portfolio strengthened, contributing to 47 per cent of individual new business, vis-a-vis 8 per cent in Q1 last year
- Driven by strong persistency, the renewal premium surged by 29 per cent to Rs.860 crores
- The 13th month premium persistency ratio stood at 83 per cent, as on 30th June 2011
- BSLI's AUM scaled up by 19 per cent this fiscal, over Q1FY11 to Rs.19,984 crores
- There was no requirement for capital infusion during the quarter
- The company posted revenue of Rs.85 crores and a PBT of Rs.30 crores
- The total average AUM (AAUM) grew quarter on quarter by 6 per cent to Rs.71,394 crores
- It ranks 5th in the industry, with a market share of 9.1 per cent in terms of domestic AAUM
- Garnered 18 per cent share in industry's net equity sales during the quarter
- It has the highest number of funds in the 5-star category reflecting its philosophy of consistently delivering superior investment performance
- Retail market share of Aditya Birla Money in cash segment enhanced quarter-on-quarter. Market share in commodities segment has also increased
- Commencement of currency trading
- Aditya Birla Money Mart is ranked as the 4th largest corporate distributor in terms of Assets Under Advice (AUA), as on 30th June 2011 (Source: CAMS report)
- An amount of Rs.198 crore of the corpus is deployed in four companies: GEI Industrial Systems, Credit Analysis & Research (CARE), Anupam Industries and Bombay Stock Exchange (BSE), all of which are performing well
- ABPE has a strong pipeline of deals across industries and will continue investing
- ABPE's second fund launched in Q4FY11, to provide investors the opportunity to benefit from the growth in sunrise sectors is receiving encouraging response from investors
- ABPE expects to announce the first closing for subscription in Q2FY12
- The closing book size of ABFL, the NBFC arm, grew year-on-year by 77 per cent to around Rs.1,975 crore
- Revenues more than doubled to Rs.60 crores, in line with the growth in book size
- Profit before tax at Rs.10 crores, remained flat year-on-year due to increase in costs
- The operational income during the period ended 30th June 2011 at Rs.9.46 crore remained flat year-on-year
- Profit before tax during period ended 30th June 2011 is Rs4.22 crore
Aditya Birla Financial Services Group 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 Rs.92,259 crores (US$20.5 billion) 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 over Rs.6,296 crores (FY2010-11) in revenues, 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.