Aditya Birla Capital Ltd. · NSE:ABCAPITAL
Aditya Birla Capital — Q3 FY24 Earnings Presentation
62 slides from Aditya Birla Capital's earnings presentation, Feb 1, 2024
Slide 1: Q3 FY24 Financial Results Investor Presentation
Q3 FY24 FINANCIAL RESULTS INVESTOR PRESENTATION February 1, 2024 A Leading Financial Services Conglomerate 01
Slide 2: Diversified Financial Services Platform from a Trusted conglomerate
Diversified Financial Services Platform from a Trusted conglomerate Promoter & Grasim Industries Promoter Group 52.7% 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 Q3 FY24
ADITYA BIRLA CAPITAL Highlights for Q3 FY24 Aditya Birla Capital Ltd.
Slide 4: Performance highlights for Q3 FY24
Performance highlights for Q3 FY24 Total lending1 portfolio of ` 1,15,139 Cr (↑ 34% y-o-y & ↑ 6% q-o-q) Total AUM3 of ` 4,10,444 Cr (↑ 13% y-o-y & ↑ 2% q-o-q) Gross premium4 of ` 13,500 Cr (↑ 13% y-o-y) in 9M FY24 Consolidated Revenue2 at ` 9,997 Cr (↑ 29% y-o-y) Consolidated PAT at ` 736 Cr (↑ 39%
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 ` 98,601 crore1 ` 16,538 crore1 ` 311,509 crore ` 135,978 crore Individual FYP Gross Premium 35% y-o-y 27% y-o-y Domestic AAUM2 Equity AAUM2 8% y-o-y 29% y-o-y 5% q
Slide 6: Consolidated Revenue and PAT
Consolidated Revenue and PAT Consolidated Revenue and PAT Business-wise Profitability Revenue1 Businesses (` crore) Q3 FY23 Q3 FY24 Y-o-Y 29% y-o-y 9,997 NBFC 540 767 42% 5,886 7,743 HFC 78 100 28% Asset Management 223 264 18% Life Insurance 45 52 17% Q3 FY22 Q3 FY23 Q3 FY24 Other Businesses 54 90 6
Slide 7: Udyog Plus key offerings
UDYOG PLUS: ~ ` 180 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 CAPITAL Aditya Birla Finance 08 Aditya Birla Capital Ltd.
Slide 9: Performance Highlights for Q3 FY24
Performance Highlights for Q3 FY24 AUM1 Retail, SME & HNI loans2 NII3 PBT GS2 & GS34 ₹ 66,637 crore ₹ 98,601 crore ₹ 1,649 crore ₹ 767 crore 4.85% (68% of AUM) ↑ 35% Y-o-Y ↑ 39% Y-o-Y ↑ 35% Y-o-Y ↑ 42% Y-o-Y ↓ 213 bps Y-o-Y ↑ 5% Q-o-Q ↑ 6% Q-o-Q ↑ 8% Q-o-Q ↑ 4% Q-o-Q ↓ 39 bps Q-o-Q 400 branches as o
Slide 10: Robust Growth in Disbursements and AUM
Robust Growth in Disbursements and AUM Disbursements (₹ crore) Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY24 Mix Q-o-Q Y-o-Y - Unsecured business 1,083 1,454 1,441 9% -1% 33% - Secured business 3,894 5,256 5,995 36% 14% 54% Total Business loans 4,977 6,710 7,436 45% 11% 49% Personal & consumer loans 4,649 5,221 5
Slide 11: Segment-wise AUM break-up
Segment-wise AUM break-up Personal & Consumer 53% y-o-y Secured business 36% y-o-y 19,326 19,606 39,707 CL-Others 0.9 Lac LAS 36,129 11% 10% 4% 0.02 Lac 14% 11% 14% CL- BNPL 12,812 TL / WCDL 29,186 10% 25% 11% 15% 27% PL LRD 86% 1.6 Lac 7% 79% 28% 7% 79% LAP 8% 53% 54% 49% Dec-22 Sep-23 Dec-23 ATS D
Slide 12: Well Diversified Product Portfolio
Well Diversified Product Portfolio Category 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) PL: ~ ₹ 1.6 Lac ,
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 92% 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 3% 1 56% 6% 2 Usage of Alternate Data in credit decisioning Customer Profile 1 3 STP process for faster TAT 35% Usage of behavior based Predictive
Slide 15: Improving Asset Quality Trends
Improving Asset Quality Trends Dec’22 Sep’23 Dec’23 Particulars % ₹ Crore % ₹ Crore % ₹ Crore Stage 1 93.02% 67,546 94.76% 88,774 95.15% 93,667 Stage 2 3.36% 2,441 2.61% 2,442 2.26% 2,225 Stage 3 3.62% 2,630 2.64% 2,469 2.59% 2,552 Stage 2 and 3 6.98% 5,071 5.24% 4,911 4.85% 4,777 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 82% 83% 2% 8% 3% 11% 11% 8% 46% 38% 50% 52% 28% 22% 25% 17% 18% 21% 29% 11% 13% 6% 0-1 months 1-2 months 2-3 months 3-6 months 6-12 months 1-5 years > 5 years Dec’22 Dec’23 Term Loan NCD CP EC
Slide 17: P&L and Key Ratios - Aditya Birla Finance
P&L and Key Ratios - Aditya Birla Finance Profit & Loss Statement (₹ crore) FY23 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Net Interest Income^ 4,410 1,222 1,520 1,649 3,139 4,603 Operating Expenses 1,417 390 437 532 1,021 1,406 Credit Provisioning 903 292 347 350 632 1,003 Profit Before Tax 2,090 540
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 19
Slide 20: Performance Highlights for Q3 FY24
Performance Highlights for Q3 FY24 Disbursement AUM NII2 GS3 PBT ₹ 2,016 crore ₹ 16,538 crore ₹ 209 crore 2.18% ₹ 100 crore ↑ 45% Y-o-Y ↑ 27% Y-o-Y ↑ 18% Y-o-Y ↓ 148 bps Y-o-Y ↑ 28% Y-o-Y ↑ 7% Q-o-Q ↑ 7% Q-o-Q ↑ 2% Q-o-Q ↓ 45 bps Q-o-Q ↑ 3% Q-o-Q 94% retail disbursement 9% ABG ecosystem 2.01% RoA at
Slide 21: Continued growth in disbursements and AUM
Continued growth in disbursements and AUM… Momentum in disbursement (₹ crore) Growth in AUM (₹ crore) 45% y-o-y 27% y-o-y 1,882 2,016 12,993 15,439 16,538 7% 9% 10% 7% 7% 7% 1,387 34% 34% 34% 17% 17% 17% 34% 33% 32% Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 Prime - HL Prime - LAP Affordable -
Slide 22: With focus on portfolio quality
…with focus on portfolio quality Dec’22 Sept’23 Dec’23 Particulars % ₹ Crore % ₹ Crore % ₹ Crore Stage 1 92.30% 11,993 95.61% 14,592 96.46% 15,615 Stage 2 4.04% 525 1.76% 269 1.36% 220 Stage 3 3.66% 476 2.63% 402 2.18% 354 Stage 2 and 3 7.70% 1,000 4.39% 671 3.54% 574 Total 100.0% 12,993 100.0% 15,2
Slide 23: Strong balance sheet with well-matched ALM
Strong balance sheet with well-matched ALM ALM optimised for liquidity and costs Borrowing Mix (on Dec 31, 2023) 100% Dec-22 Dec-23 100% Cumulative Outflows Cumulative Inflows 4% 10% 81% 80% 53% Term Loan 26% NHB 42% 25% 32% 36% NCD 25% 19% 19% 10% 12% 16% 15% 7% Others 17% 0-1 months 1-2 months 2-3
Slide 24: P&L and Key Ratios - Aditya Birla Housing Finance
P&L and Key Ratios - Aditya Birla Housing Finance (₹ crore) FY23 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Net Interest Income (Incl. fee income) 659 177 205 209 490 604 Operating expenses 278 73 107 113 202 320 Operating profit 381 104 98 96 287 284 Credit provisioning 72 26 1 -4 62 3 Profit before t
Slide 25: 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 26: Aditya Birla Sun Life AMC
ADITYA BIRLA CAPITAL Aditya Birla Sun Life AMC Aditya Birla Capital Ltd.
Slide 27: Performance Highlights for Q3 FY24
Performance Highlights for Q3 FY24 Mutual fund Equity Individual Total PAT QAAUM QAAUM MAAUM Revenue ₹ 3,11,509 crore ₹ 1,35,978 crore ₹ 1,66,316 crore ₹ 421 crore ₹ 209 crore Market share Market 5.0% ↑ 14% Y-o-Y ↑ 16% Y-o-Y ↑ 26% Y-o-Y share1 7.1% Mix 43.7% 36% y-o-y 7% Y-o-Y 0.5 million folios add
Slide 28: Assets under management
Assets under management Mutual fund closing assets under management1 Total quarterly average assets under management1 2,75,287 2,93,858 3,12,293 2,93,009 3,23,534 3,24,651 941 965 1,025 11,694 12,176 40,475 10,267 56,344 49,752 40,058 49,060 53,493 1,27,063 1,25,780 1,23,404 1,24,346 1,09,459 1,08,1
Slide 29: 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 14% y-o-y 14% y-o-y Outstanding SIPs1 ₹ Crore(1) (Mn) 55,458 92% 1,005 84% 1,66,316 3.26 1,45,821 942 3.24 48,515 Dec-22 Dec-23 De
Slide 30: Growth in passives and alternative investments
Growth in passives and alternative investments Passives 28,438 29,299 1,919 ETF Passive AUM (in ` Cr)1 1,458 21,619 ~6,00,000 36% 1,292 Index Investor Folios Serviced Growth in Passives2 20,715 20,747 17,415 FOF 2,912 6,265 6,633 43 Product Bouquet Dec-22 Sep-23 Dec-23 AUM3 AUM3 PMS / AIF AUM3 ₹2,67
Slide 31: Growth in multi-channel distribution network
Growth in multi-channel distribution network Continue to expand distributor base and empaneled 6,500 + new MFDs in 9M FY24 290+ Locations 78,300+ 90 85+ 300+ 120+ MFDs Banks Emerging Market National Digital Over 80% are Locations Distributors Partners in B30 cities Servicing Investors across 19,000+
Slide 32: Digital Assets & Partnership
Digital Assets & Partnership Customer Distributor Digital Onboarding 80% Onboarding 91% Transactions 86% 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 33: P&L - Aditya Birla Sunlife AMC
P&L - Aditya Birla Sunlife AMC (₹ crore) FY23 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Revenue from Operations 1,227 314 335 341 930 988 Costs 560 140 154 157 412 460 Operating Profit 667 174 181 184 518 528 Other Income 127 49 56 80 95 213 Profit before tax 794 223 237 264 613 741 Tax 197 56 59 54 1
Slide 34: 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 35: Aditya Birla Sun Life Insurance
Aditya Birla Sun Life Insurance 35
Slide 36: Performance Highlights for 9M FY24
Performance Highlights for 9M FY24 Individual Group Total FYP AUM Net VNB2 FYP1 Premium ` 1,974 cr ` 3,048 cr ` 11,101 cr ` 82,043 cr 15.6% ↑ 8% Y-o-Y ↓ 2% Y-o-Y ↑ 10% Y-o-Y ↑ 21% Y-o-Y ↑ 5 bps Y-o-Y New banca partnership with 17% Growth in Policy count Renewal Premium ↑ 20% Axis Bank 36 1.Single pr
Slide 37: Industry Performance
Industry Performance Individual FYP1 Group New Business Premium Private Private Industry ABSLI Industry ABSLI Players Players 9M FY24 9M FY24 -2% Y-o-Y -14% Y-o-Y 8% Y-o-Y 11% Y-o-Y 7% Y-o-Y 12% Y-o-Y Growth Growth ` crore ` crore 1,974 3,096 3,048 1,824 1,454 2,192 9M FY22 9M FY23 9M FY24 9M FY22 9
Slide 38: Diversified and scaled up distribution mix
Diversified and scaled up distribution mix 4,000+ 360+ 56,000+ 111 19,500+ Cities Own Branches Agents Banca Tie-ups Bank Branches Strong growth across channels Product Mix by Channel (9M FY24 FYP ` In Cr) Channel Mix (9M FY24) ULIP Traditional Protection Proprietary Partnership 21% 19% 39% 36% 38% 1
Slide 39: New Products and Risk Mitigation
New Products and Risk Mitigation ▪ Salaried Term Plan (Protection) ➢ Industry first product specific for Salaried segment New ➢ Special discount for women customers Products – ➢ Competitive pricing with high sum assured options launched in Q3 FY24 ▪ Platinum Gain Plan & Fortune Wealth Plan ➢ Industr
Slide 40: Value accretive products
Value accretive products… Product Mix VNB1 ` crore 6.6% 2.4% 2.8% 11.2% 15.5% 15.6% 59.8% 76.6% 76.6% 345 324 178 33.5% 21.0% 20.6% 9M FY22 9M FY23 9M FY24 9M FY22 9M FY23 9M FY24 Protection Traditional ULIP …leading to increasing proportion of traditional products and expansion in margin 40 1.Indiv
Slide 41: 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 ↑ 20% 14% Y-o-Y 77% 80% Dec’23 Dec’22 Dec’21 17% - 2Yr CAGR Δ 2Y 8
Slide 42: Strong investment process
Strong investment process Asset Under Management (in ` Cr) Composition of AUM 18% - 2Yr CAGR 82,043 3% 67,989 26% Debt 59,114 26% Equity 74% 75% 75% 25% 25% 26% Dec’21 Dec’22 Dec’23 45% Investment Performance1 Crisil Benchmark Performance Equity & others Income Advantage Enhancer Maximizer Debenture
Slide 43: Digital adoption
Digital adoption Customer Customer Self Pre-Approved Onboarding 100% Digital Renewal 80% Servicing 93% New Business 26% Customer Experience Customer Retention Customer Centricity Pre-Purchase 100% New business Digital collection at 80%, WhatsApp & Chatbot PASA1 contributed processed digitally growth
Slide 44: P&L and Key Ratios - Aditya Birla Sun Life Insurance
P&L and Key Ratios - Aditya Birla Sun Life Insurance (` crore) FY23 Q3 FY 23 Q2 FY24 Q3 FY 24 9M FY 23 9M FY 24 Individual First year Premium 1 3,484 892 745 883 2,148 2,230 Group First year Premium 4,189 930 898 1,089 3,096 3,048 Renewal Premium 7,397 1,918 2,080 2,302 4,870 5,823 Total Gross Premi
Slide 45: 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 46: Aditya Birla Health Insurance
Aditya Birla Health Insurance 46
Slide 47: Performance Highlights for 9M FY24
Performance Highlights for 9M FY24 GWP1 Market PBT Combined Share Ratio ` 2399 crore 10.7% 10.7%SAHI SAHI ` (270) crore 121% 10.4% LY (217) Crore 114% ↑ 29% Y-o-Y ↑ 30 bps LY LY With 40% YoY growth New comprehensive product With 43% YoY increase, Proprietary channel now ACTIV ONE well received by AB
Slide 48: Scaled-up, diversified and digitally enabled distribution
Scaled-up, diversified and digitally enabled distribution +19% Proprietary 1280 Growth at 40 % 5000+ cities Continued focus on leveraging 1074 One ABC branch infrastructure 387 276 100k+ Agents Banca 434 Growth at 18 % 367 Growth in all major 5000+ Sales Force relationships | Activated Yes 150 Bank
Slide 49: Product Mix and New Product with Comprehensive Coverages
Product Mix and New Product with Comprehensive Coverages.. Comprehensive New Product – Activ ONE Product Mix Variant MAX Indeminity 87% 82% VYTL NXT Fixed Benefits 13% 18% SAVR 9M FY23 9M FY24 100% Health | 100% Insurance VIP Results 100% Health Returns TM Fixed Benefits, focus for VIP+ No Capping o
Slide 50: Scale up of Differentiated Health First Model
Scale up of Differentiated Health First Model Know your health Improve your health Get Rewarded 11bn+ 5.37 lac+ 1.7L+ HA Steps on App Regular monthly 43K+ DHA 51k+ High engagements Risk 15L+ WBS2 customers ▪ 105+ unique Customer data points | ▪ Higher Persistency by 11.1% & ▪ 5.2% Customers earning
Slide 51: Health Returns: Significant Engagement to drive Physical activity
Significant Engagement to drive Physical activity Nudging customers at scale to drive Incentivising customers exhibiting healthy Physical activity behaviour Base Loss Ratio -6% Health Returns INR -17% -23% 0-0.5K Base -37% -18% Loss Ratio 0.5K-1K 1K-2K -32% 2K-5K -42% 5K+ -50% Inactiv 4 to 6 7 to 9
Slide 52: Leveraging digital to enhance customer and distributor experience
Leveraging digital… Digital Suit 96% 83% Customer First Customers Digital App - Digital Chatbot & Onboarding & onboarded digitally Renewals health eco WhatsApp Retention End to End system Servicing Journey 93% 82% Hyper Buy & Renewal Digital Claims Services Digital Self Omni Channel Personalization
Slide 53: Evolving Data & Analytics architecture
Evolving Data & Analytics architecture Data Source Solution and - Learning and Identification Intervention Refinement Problem EDA and Model Visualizing Identification Development and Monitoring Revenue Focus Key Projects Other Projects ▪ 20% ATS lift over Non-PASA ▪ FWA model → Enhanced ▪ 15L+ WBS s
Slide 54: Continuing Superior Customer Experience
Continuing Superior Customer Experience 95% Claim Settlement Ratio, One of the best in Industry 11k+ network hospital, One of the best in Industry Cashless anywhere launched in Q3 (Ahead of the industry) Assocham Award Runner Up for Claims Experience in GI & SAHI & thousands of similar stories… 54
Slide 55: Business Outcomes
Business Outcomes Revenue (` Cr.) Lives covered (Mn) Retail Rural +9% Group (incl. Rural) Byte +43% 25 2399 Retail and Group 21 1860 17 53% 13 7 1178 58% 7 6 7 68% 47% 6 32% 42% 4 6 7 9M FY22 9M FY23 9M FY24 9M FY 22 9M FY 23 9M FY 24 Combined Ratio Profit Before Tax (` Cr.) -283 -270 136% -217 114%
Slide 56: P&L - Aditya Birla Health Insurance
P&L - Aditya Birla Health Insurance ( ` In crore) FY23 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Retail Premium 1,519 351 444 472 1,074 1280 Rural Premium 86 13 5 7 82 14 Group Premium 1,112 223 340 360 702 1106 Gross Written Premium 2,717 588 794 839 1,858 2399 Revenue (IND AS) 2,566 561 731 790 1,76
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
ADITYA BIRLA CAPITAL Other Updates 58 Aditya Birla Capital Ltd.
Slide 59: Other financial services businesses
Other financial services businesses Revenue Revenue 34% y-o-y PBT 67% y-o-y 410 95 306 293 57 46 Q3 FY22 Q3 FY23 Q3 FY24 Q3 FY22 Q3 FY23 Q3 FY24 General Insurance Broking Stock & Securities Broking Asset Reconstruction Company Q3 FY23 Q2 FY24 Δ Q3 FY23 Q3 FY24 Δ Q3 FY23 Q3 FY24 Δ Premium Placement 1
Slide 60: Consolidated P&L – Aditya Birla Capital
Consolidated P&L – Aditya Birla Capital (₹ crore) FY23 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Revenue 27,416 6,938 7,721 8,800 19,391 23,566 Profit Before Tax (before share of profit/(loss) of JVs 2,624 700 957 1,004 1,855 2,809 Add: Share of Profit/(loss) of associate and JVs 273 60 52 45 209 161
Slide 61: Thank You
ADITYA BIRLA CAPITAL THANK YOU 61 Aditya Birla Capital Ltd.
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