Aditya Birla Capital's Q3 net up 27% YoY as retail, SME lending grows

Strong performance across businesses help 40% YoY growth in lending book

Aditya Birla Capital (ABCL) on Thursday said its consolidated net profit increased 27 per cent on a year-on-year (YoY) basis to Rs 530 crore for the quarter ended December 2022 (Q3 FY23).

The financial services company, which has lending, mutual fund, life insurance and other businesses, made a consolidated net profit of Rs 416 crore in the same quarter a year ago (Q3 FY22).

ABCL’s stock closed 1.84 per cent higher at Rs 138.3 per share on BSE. Consolidated revenue grew 31 per cent YoY to Rs 7,699 crore.

Strong momentum across businesses led to a 40 per cent YoY growth in the overall lending book (non-banking finance company and housing finance company) to Rs 85,869 crore as on December 31,2022.

The company’s NBFC loan book grew 47 per cent YoY to Rs 72,994 crore, backed by robust growth in allotments to retail, SME and high net worth customers. They constituted 66 per cent of the total loan book as on December 31, 2022.

Net interest margin (NIM) of NBFC expanded by 77 basis points YoY to 7.0 per cent in Q3 FY23. The NBFC unit’s profit before tax grew 40 per cent year-on-year to Rs. 540 crore in Q3 FY23.

The housing finance arm’s loan book grew by 11 per cent YoY to Rs 12,874 crore as on December 31, 2022. Net interest margin (NIM) expanded by 106 basis points to 5.35 per cent in Q3 FY23.

The housing finance company’s profit before tax grew 16 per cent YoY to Rs 78 Crore in Q3 FY23.