Aditya Birla Capital Ltd. · NSE:ABCAPITAL
Aditya Birla Capital — Q2 FY24 Earnings Presentation
62 slides from Aditya Birla Capital's earnings presentation, Nov 3, 2023
Slide 1: Q2 FY24 Financial Results Investor Presentation
Q2 FY24 FINANCIAL RESULTS INVESTOR PRESENTATION 3rd Nov 2023 A Leading Financial Services Conglomerate
Slide 2: Diversified Financial Services Platform from a Trusted conglomerate
Diversified Financial Services Platform from a Trusted conglomerate Promoter & Grasim Industries Promoter Group 52.8% 16.3% Listed 100% 100% 51% 50% 46% Aditya Birla Finance Aditya Birla Housing Aditya Birla Sun Life Aditya Birla Sun Life Aditya Birla Health Finance 100% Insurance 51% AMC Insurance
Slide 3: Highlights for Q2 FY24
Highlights for Q2 FY24 Aditya Birla Capital Limited 3
Slide 4: Performance highlights for Q2 FY24
Performance highlights for Q2 FY24 Total lending1 portfolio of ` 1,08,961 Cr (↑ 41% y-o-y & ↑ 8% q-o-q) Total AUM3 of ` 4,04,354 Cr (↑ 12% y-o-y & ↑ 7% q-o-q) Gross premium4 of ` 8,388 Cr (↑ 10% y-o-y) in H1 FY24 Consolidated Revenue2 at ` 8,831 Cr (↑ 22% y-o-y) Consolidated PAT at ` 705 Cr (↑ 44% y
Slide 5: Performance across key metrics
Performance across key metrics Life Health NBFC Housing Asset Management Insurance Insurance 1 Loan Book 1 AUM Growth 1 Premium Growth4 ` 93,522 crore1 ` 15,439 crore1 ` 310,899 crore ` 130,209 crore Individual FYP Gross Premium 44% y-o-y 23% y-o-y Domestic AAUM2 Equity AAUM2 13% y-o-y 23% y-o-y 9%
Slide 6: Consolidated Revenue and PAT
Consolidated Revenue and PAT Consolidated Revenue and PAT Business-wise Profitability Revenue1 Businesses (` crore) Q2 FY23 Q2 FY24 Y-o-Y 22% y-o-y NBFC 488 736 51% 8,831 5,970 7,215 HFC 76 97 28% Asset Management 249 237 5% Life Insurance 56 42 24% Q2 FY22 Q2 FY23 Q2 FY24 Other Businesses 56 69 23%
Slide 7: Udyog Plus key offerings
UDYOG PLUS: ` 100 Cr + DISBURSEMENTS TILL DATE Cash flow backed lending by using traditional and alternate data sources along with value-added services for MSME ecosystem to manage and grow their business Opportunities in ABG Finance Business Solutions ecosystem Loan E-commerce Banking Channel finan
Slide 8: Aditya Birla Finance
Aditya Birla Finance Aditya Birla Capital Limited 8
Slide 9: Performance Highlights for Q2 FY24
Performance Highlights for Q2 FY24 Retail, SME & AUM HNI loans1 NII2 PBT GS2 & GS33 ₹ 62,577 crore ₹ 93,522 crore ₹ 1,520 crore ₹ 736 crore 5.24% (67% of AUM) ↑ 44% Y-o-Y ↑ 49% Y-o-Y ↑ 50% Y-o-Y ↑ 51% Y-o-Y ↓ 326 bps Y-o-Y ↑ 9% Q-o-Q ↑ 9% Q-o-Q ↑ 6% Q-o-Q ↑ 7% Q-o-Q ↓ 22 bps Q-o-Q 5.9 mn active cust
Slide 10: Robust Growth in Disbursements and AUM
Robust Growth in Disbursements and AUM Disbursements (₹ crore) Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY24 Mix Q-o-Q Y-o-Y - Unsecured business 1,098 1,157 1,454 9% 26% 32% - Secured business 4,507 4,132 5,256 32% 27% 17% Total Business loans 5,605 5,289 6,710 41% 27% 20% Personal & consumer loans 3,513 4,778 5
Slide 11: Segment-wise AUM break-up
Segment-wise AUM break-up Personal & Consumer 2x y-o-y Secured business 33% y-o-y 19,326 36,129 Consumer Loan 17,693 LAS 33,188 14% 21% 27,212 13% Personal Loan 23% TL / WCDL 15% 27% 28% 9,563 LRD 7% 79% 29% 7% 23% 77% LAP 9% 53% 77% 53% 47% Sep-22 Jun-23 Sep-23 Sep-22 Jun-23 Sep-23 ATS ATS (₹ lacs)
Slide 12: Well Diversified Product Portfolio
Well Diversified Product Portfolio Segment Personal & Consumer Unsecured Business Secured Business Corporate / Mid-Market Presence Semi-urban Semi-urban Semi-urban / SME Clusters Top 6-7 Cities Sourcing DSA + Direct + Ecosystems DSA + Ecosystems DSA + Direct Relationship (Direct) ATS1 ~ ₹ 33,000 ~ ₹
Slide 13: Digital Adoption in Customer Sourcing and Servicing
Digital Adoption in Customer Sourcing and Servicing Customer EMIs Collected Digital Service Email BOT Onboarding 99% Digitally 98% Interactions 95% Accuracy 91% Customer Customer Process Collections Acquisition Servicing Automation Fully agile tech stack for Inbound contact center Significant e-Nach
Slide 14: Customer Profile
Underwriting Approach in Personal and Consumer Loans Bureau score buckets Underwriting Approach 1 Utilization of Scorecard for better Customer Selection 56% 5% 1 2 Usage of Alternate Data in credit decisioning 8% Customer Profile 1 3 STP process for faster TAT 31% Usage of behavior based Predictive
Slide 15: Improving Asset Quality Trends
Improving Asset Quality Trends Sep’22 Jun’23 Sep’23 Particulars % ₹ Crore % ₹ Crore % ₹ Crore Stage 1 91.50% 59,406 94.54% 81,093 94.76% 88,774 Stage 2 4.97% 3,227 2.64% 2,266 2.61% 2,442 Stage 3 3.53% 2,294 2.82% 2,419 2.64% 2,469 Stage 2 and 3 8.50% 5,521 5.46% 4,685 5.24% 4,911 Total Loan book 10
Slide 16: Well Matched ALM and Diversified Borrowing Mix
Well Matched ALM and Diversified Borrowing Mix 100%100% Funding Mix Cumulative Outflows Cumulative Inflows 83%83% 3% 3% 9% 10% 11% 9% 46% 49% 37% 53% 27% 25% 20% 21% 28% 12%15% 15% 7% 10% 0-1 months 1-2 months 2-3 months 3-6 months 6-12 months 1-5 years > 5 years Sep’22 Sep’23 Term Loan NCD CP ECB C
Slide 17: P&L and Key Ratios- Aditya Birla Finance
P&L and Key Ratios- Aditya Birla Finance Profit & Loss Statement (₹ crore) FY23 Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 Net Interest Income^ 4,410 1,017 1,433 1,520 1,917 2,953 Operating Expenses 1,417 336 437 437 631 874 Credit Provisioning 903 193 306 347 340 653 Profit Before Tax 2,090 488 691 73
Slide 18: Our Approach
Our Approach Deep mine existing customer base acquired through digital ecosystems using analytics and increase cross-sell Scorecard based STP1 journeys with zero human interventions Increase share of emerging salaried segment in personal loans Tie up with new partners to diversify digital ecosystem
Slide 19: Aditya Birla Housing Finance
Aditya Birla Housing Finance Aditya Birla Capital Limited 19
Slide 20: Performance Highlights for Q2 FY24
Performance Highlights for Q2 FY24 Disbursement AUM NII2 NIM PBT ₹ 1,882 crore ₹ 15,439 crore ₹ 205 crore 4.88% ₹ 97 crore ↑ 52% Y-o-Y ↑ 23% Y-o-Y ↑ 25% Y-o-Y ↓ 25 bps Y-o-Y ↑ 28% Y-o-Y ↑ 16% Q-o-Q ↑ 6% Q-o-Q ↑ 8% Q-o-Q ↓ 23 bps Q-o-Q ↑ 15% Q-o-Q 96% disbursement at 4.39 % Stage 2 and 3 loans 2.03%
Slide 21: Continued growth in disbursements and AUM
Continued growth in disbursements and AUM… Momentum in disbursement (₹ crore) Growth in AUM (₹ crore) 52% y-o-y 23% y-o-y 1,882 12,561 14,509 15,439 1,620 6% 8% 9% 7% 7% 7% 1,237 34% 35% 34% 18% 17% 17% 35% 33% 33% Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 • Market mapping and penetration stra
Slide 22: …with focus on quality of origination…
…with focus on quality of origination… Credit bureau score mix Particulars Q2 FY23 Q1 FY24 Q2 FY24 > 700 82% 88% 89% Consistent focus on quality of origination with 96% disbursement New to credit 10% 7% 7% at CIBIL >700 & NTC. 651 – 700 7% 5% 4% < 650 1% 0% 0% Rigorous monitoring of key portfolio
Slide 23: …resulted in improving portfolio quality
…resulted in improving portfolio quality Sept’22 Jun’23 Sept’23 Particulars % ₹ Crore % ₹ Crore % ₹ Crore Stage 1 91.71% 11,519 95.22% 13,816 95.61% 14,592 Stage 2 4.54% 570 2.11% 306 1.76% 269 Stage 3 3.75% 471 2.67% 388 2.63% 402 Stage 2 and 3 8.29% 1,041 4.78% 693 4.39% 671 Total 100.0% 12,561 10
Slide 24: Strong balance sheet with well-matched ALM
Strong balance sheet with well-matched ALM ALM optimised for liquidity and costs Borrowing Mix (on Sept 30, 2023) 100%100% Sep-22 Sep-23 Cumulative Outflows Cumulative Inflows 10% 80% 80% 7% Term Loan 18% 59% NHB 24% 45% 29%33% 17%21% NCD 11%13% 12%15% 5% 7% 16% Others 0-1 months 1-2 months 2-3 mont
Slide 25: P&L and key ratios – Aditya Birla Housing Finance Limited
P&L and key ratios – Aditya Birla Housing Finance Limited (₹ crore) FY23 Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 Net Interest Income (Incl. fee income) 659 164 190 205 312 394 Operating expenses 278 68 100 107 129 207 Operating profit 381 96 90 98 183 188 Credit provisioning 72 21 5 1 36 6 Profit be
Slide 26: Our Approach
Our Approach Accelerate growth in prime & affordable segments with average ticket size of ₹ 25 – 30 lacs Growth to be augmented by ABG ecosystem Growth To be the most preferred choice of our customer Digital capabilities for seamless customer onboarding and servicing Service Building a culture of sp
Slide 27: Aditya Birla Sun Life AMC
Aditya Birla Sun Life AMC Aditya Birla Capital Limited 27
Slide 28: Performance Highlights for Q2 FY24
Performance Highlights for Q2 FY24 Mutual fund Equity Individual Operating Operating QAAUM QAAUM MAAUM revenue profit ₹ 3,10,899 crore ₹ 1,30,209 crore ₹ 1,59,069 crore ₹ 335 crore ₹ 181 crore Market share Market 5.2% ↑ 11% Y-o-Y ↑ 8% Y-o-Y ↑ 5% Y-o-Y share1 7.4% Mix 41.9% 68% y-o-y 0.3 million foli
Slide 29: Assets under management
Assets under management Mutual fund closing assets under management1 Total average assets under management1 2,65,800 2,98,493 2,93,858 2,93,787 3,08,424 3,23,534 922 941 53,675 40,058 1,007 10,564 11,694 43,843 10,200 56,344 56,179 57,057 1,21,674 1,23,404 1,06,615 1,21,256 1,24,346 1,07,315 1,15,34
Slide 30: Growth in retail franchise and SIP flows
Growth in retail franchise and SIP flows Individual MAAUM B-30 MAAUM Long Tenure SIP Building sustainable SIP flows Book (2) # of Live SIP Flows in % Count of Total SIPs 11% y-o-y 13% y-o-y Outstanding SIPs1 ₹ Crore(1) (Mn) 91% 53,082 3.26 3.23 83% 1,59,069 46,787 968 1,43,322 931 Sep-22 Sep-23 Sep-
Slide 31: Growth in passives and alternative investments
Growth in passives and alternative investments Passives 28,223 28,675 28,438 1,378 1,430 1,458 ETF 16,923 21,619 Passive AUM (in ` Cr)1 1,292 Index ~5,40,000 68% Investor Folios Serviced Growth in Passives2 1,163 21,897 21,855 20,715 FOF 17,415 14,017 6,265 40 5,390 1,742 2,912 4,948 Product Bouquet
Slide 32: Growth in multi-channel distribution network
Growth in multi-channel distribution network Continue to expand distributor base and empaneled 4,300 + new MFDs in H1 FY24 290+ Locations 76,300+ 85+ 85+ 300+ 100+ MFDs Banks Emerging Market National Digital Over 80% are Locations Distributors Partners in B30 cities Servicing Investors across 19,000
Slide 33: Digital Assets & Partnership
Digital Assets & Partnership Customer Distributor Digital Onboarding 78% Onboarding 91% Transactions 83% Enhancing Digital Capabilities • Launched Sampoorna SIP across Investor and Distributor • AI-ML based campaign journeys for next best conversations Customer Journey platforms Automation • Hyper-s
Slide 34: Key financials– Aditya Birla Sunlife AMC Limited
Key financials– Aditya Birla Sunlife AMC Limited (₹ crore) FY23 Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 Revenue from Operations 1,227 311 311 335 616 646 Costs 560 138 149 154 271 303 Operating Profit 667 173 163 181 344 344 Other Income 127 77 78 56 46 133 Profit before tax 794 249 240 237 390 477
Slide 35: Our Approach
Our Approach Scale up retail franchise and diversify product offerings Focusing on Direct/HNI Channel to provide incremental growth Drive growth in SIP flows Retail franchise Focus on scaling alternative assets business including AIF, PMS and Real Estate New product launches in equity and fixed inco
Slide 36: Aditya Birla Sun Life Insurance
Aditya Birla Sun Life Insurance Aditya Birla Aditya BirlaCapital CapitalLimited Limited 36
Slide 37: H1 FY24 | Performance Highlights
H1 FY24 | Performance Highlights Individual Group Total FYP AUM Net VNB2 FYP1 Premium ` 1,189 cr ` 1,959 cr ` 6,827 cr ` 76,994 cr 14.2% ↑ 13% Y-o-Y ↓ -10% Y-o-Y ↑ 7% Y-o-Y ↑ 19% Y-o-Y ↑ 195 bps Y-o-Y H1 FY24 Individual FYP Growth 19% Growth in Number Of 13.4%3 is in line with Private Industry Polic
Slide 38: Continue to outperform industry growth
Continue to outperform industry growth Individual FYP1 Group New Business Premium Private Private Industry ABSLI Industry ABSLI Players Players H1 FY24 H1 FY24 13% Y-o-Y 13% Y-o-Y 8% Y-o-Y Growth -10% Y-o-Y 17% Y-o-Y -23% Y-o-Y Growth ` crore ` crore 1,189 2,166 1,051 1,959 879 1,343 H1 FY22 H1 FY23
Slide 39: Diversified and scaled up distribution mix
Diversified and scaled up distribution mix… 4,000+ 360+ 54,000+ 101 17,500+ Cities Own Branches Agents Banca Tie-ups Bank Branches Strong growth across channels Product Mix by Channel (H1 FY24 FYP ` In Cr) Channel Mix (H1 FY24) Protection Traditional ULIP 22% Proprietary Partnership 5% 1% 39% 35% 38
Slide 40: New Products and Risk Mitigation
New Products and Risk Mitigation • New products launched in last 12 months contributed to 44% of Individual FYP for H1 FY24. • Nishchit Laabh Plan New ➢ Long term guaranteed income for 20 or 30 years Products – ➢ Moneyback Payouts at the end of every 5th Year launched in H1 • Nishchit Pension Plan ➢
Slide 41: Value accretive products
Value accretive products… Product Mix VNB1 ` crore 6.7% 2.6% 2.8% ~195 bps 7.6% 12.3% 14.2% 59.1% 74.4% 79.4% 195 30% y-o-y 150 73 34.2% 23.0% 17.8% H1 FY22 H1 FY23 H1 FY24 H1 FY22 H1 FY23 H1 FY24 Protection Traditional ULIP …leading to increasing proportion of traditional products and expansion in
Slide 42: Consistent Quality Improvements
Consistent Quality Improvements TotalRenewal Total RenewalPremium Premium( ` Persistency11 Opex to premium ratio2 ( crore) ` crore) Renewal Growth Digital Renewal Improving Persistency across all Controlled Operating expenses cohorts ↑ 14% 19% Y-o-Y 80% 77% Sep’23 Sep’22 Sep’21 16% - 2Yr CAGR Δ 2Y 2
Slide 43: Strong investment process
Strong investment process Asset Under Management (in ` Cr) Composition of AUM 16% - 2Yr CAGR 76,994 3% 64,643 57,118 25% Debt 27% Equity 75% 75% 76% 25% 24% 25% Sep’21 Sep’22 Sep’23 45% Investment Performance1 Crisil Benchmark Performance Equity & others Income Advantage Enhancer Maximizer Debenture
Slide 44: Digital adoption
Digital adoption Customer Customer Self Pre-Approved Onboarding 100% Digital Renewal 80% Servicing 89% New Business 27% Customer Experience Customer Retention Customer Centricity Pre-Purchase 100% New business Digital collection at 80%, WhatsApp & Chatbot PASA contributed sourced digitally growth of
Slide 45: P&L and key ratios– Aditya Birla Sun Life Insurance Limited
P&L and key ratios– Aditya Birla Sun Life Insurance Limited (` crore) FY23 Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 Individual first year premium 3,484 806 602 745 1,256 1,347 Group first year premium 4,189 1,281 1,062 898 2,166 1,959 Renewal premium 7,397 1,666 1,441 2,080 2,952 3,521 Total gross pr
Slide 46: Our Approach
Our Approach Grow traditional products including protection in retail segment Focus on growing credit life in group segment Continue to make investments in Direct channel Growth Invest in PSU relationships and New relationships to grow mindshare Mitigate interest rate risk by Active forward rate agr
Slide 47: Aditya Birla Health Insurance
Aditya Birla Health Insurance Aditya Birla Aditya BirlaCapital CapitalLimited Limited 47
Slide 48: Performance Highlights for H1 FY24
Performance Highlights for H1 FY24 GWP1 Market PBT Combined Share Ratio ` 1,561 crore 10.7% 10.7%SAHI SAHI ` (140) crore 119% 10.9% (149) Crore 112% ↑ 23% Y-o-Y H1 FY23 H1 FY23 H1 FY23 Diverse distribution with New tie up with Yes Bank | 2-Year CAGR @ 42% against Proprietary mix at 30% of PSU Banks
Slide 49: Scaled-up, diversified and digitally enabled distribution
Scaled-up, diversified and digitally enabled distribution 5000+ 225+ 100K+ 18 5,000+ Cities Branches Agents Bank Sales Force Partners Channel Mix1 Proprietary Product Mix Non-Metro GWP2 25% 30% 26% 25% 84% 88% 75% 70% 75% 74% 12% 16% H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 Proprietary Partne
Slide 50: Scaled-up, diversified and digitally enabled distribution
Scaled-up, diversified and digitally enabled distribution Proprietary Product Innovation & Market expansion +12% 808 Growth at 34 % Incentivize Wellness 723 Continued focus on leveraging One ABC branch infrastructure Upto 100% of Health Returns (Return of Premium) 246 Chronic care 183 ABCD with cond
Slide 51: Differentiated business model
Differentiated business model… Know Your Health Improve Your Health Get Rewarded 03 02 01 LOW RISK HIGH RISK MEDIUM RISK 180+ data WBS2 points 28%1 Access to Holistic Integrated Upto 100% of customers administered health & Wellness Ecosystem - HealthReturnsTM Health Assessment (HA) 60+partners 16% 5
Slide 52: Leveraging digital to enhance customer & distributor experience
Leveraging digital… 96% 83% Digital Suit Digital Customer First Customers App - Digital Chatbot & Onboarding & onboarded digitally Renewals health eco WhatsApp Retention End to End system Servicing Journey 93% 79% Services Digital Self Hyper Omni Channel Buy & Renewal Digital Claims Personalization
Slide 53: Data & Analytics Update
Data & Analytics Update CLTV – Acquisition, Customer Engagement & Fraud & Risk Management Persistency & Cross-sell Experience 14,50,000 WBS 20% ATS lift over Non- WBS / HHS generated – helping to PASA Fraud PASA acquisition Score lower claims, higher >8Cr savings monthly Detection X-Sell campaign li
Slide 54: Superior customer experience
Superior customer experience Customer experience focus 96% claim settlement ratio One of the best in the Industry 75% Cashless claims settled within 2 hrs 11,026 provider network One of the largest in the Industry Inhouse Superior claims processing | Increasing Digitization | Lead in adoption of Int
Slide 55: Business Outcomes
Business Outcomes Revenue (` Cr.) Lives covered (Mn) Retail Rural +15% Group (incl. Rural) Byte +42% 1561 Retail and Group 24 21 1271 16 52% 13 8 764 57% 6 6 7 69% 48% 6 43% 4 5 7 31% H1 FY22 H1 FY23 H1 FY24 H1 FY 22 H1 FY 23 H1 FY 24 Combined Ratio Profit Before Tax (` Cr.) -230 145% 112% 119% -149
Slide 56: P&L– Aditya Birla Health Insurance Limited
P&L– Aditya Birla Health Insurance Limited ( ` In crore) FY23 Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 Retail Premium 1,519 390 364 444 723 808 Rural Premium 86 31 1 5 69 6 Group Premium 1,112 219 406 340 479 746 Gross Written Premium 2,717 640 772 794 1271 1561 Revenue (IND AS) 2,566 609 718 731 120
Slide 57: Our Approach – Health First Data-driven Model
Our Approach – Health First Data-driven Model Differentiated ▪ Attract Young & Healthy Customer Target Segment Health First ▪ Incentivize customers for healthy behavior approach ▪ Data driven approach for superior customer understanding Diversified ▪ Diversified Distribution with growth focus on Pro
Slide 58: Other Updates
Other Updates Aditya Birla Capital Limited 58
Slide 59: Other financial services businesses
Other financial services businesses Revenue Revenue PBT 36% y-o-y 5% y-o-y 305 81 288 60 267 46 Q2 FY22 Q2 FY23 Q2 FY24 Q2 FY22 Q2 FY23 Q2 FY24 General Insurance Broking Stock & Securities Broking Asset Reconstruction Company Q2 FY23 Q2 FY24 Δ Q2 FY23 Q2 FY24 Δ Q2 FY23 Q2 FY24 Δ Premium Placement 1,
Slide 60: Consolidated P&L – Aditya Birla Capital
Consolidated P&L – Aditya Birla Capital (₹ crore) FY23 Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 Revenue 27,416 6,830 7,045 7,721 12,424 14,766 Profit Before Tax (before share of profit/(loss) of JVs 2,624 593 848 957 1,155 1,805 Add: Share of Profit/(loss) of associate and JVs 273 97 64 52 149 116 Pr
Slide 61: A financial services conglomerate meeting the life time needs of its customers
A financial services conglomerate meeting the life time needs of its customers CIN: L67120GJ2007PLC058890 Regd. Office: Indian Rayon Compound, Veraval – 362 266, Gujarat Corporate Office: One Indiabulls Centre, Tower 1, Jupiter Mills Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400
Slide 62: Disclaimer
Disclaimer The information contained in this presentation is provided by Aditya Birla Capital Limited (“ABCL or the Company”), formerly known as Aditya Birla Financial Services Limited, to you solely for your reference. Any reference herein to "the Company" shall mean Aditya Birla Capital Limited, t