Aditya Birla Capital reports results for the quarter ended 30th June, 2020

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Mumbai : Aditya Birla Capital Limited (“The Company”) announced its unaudited financial results for the quarter ended 30th  June 2020.The Consolidated Revenue of the Company grew 9% year on year to Rs. 4,293 Crore. The Company, through its subsidiaries, continued its consistent delivery of profit through its diversified business model.The consolidated profit after tax (after minority interest) grew 1.4 times over Q4 FY20 to Rs. 198 Crore, marked by resilience across businesses. This is after providing an additional Rs. 62 Crore as COVID provisions in its lending businesses in Q1 FY21. With 91% of its branches operational with strict health protocols, the company looked to normalise its operations through Q1 FY21. The Company will continue to monitor developments in the market as lockdowns get lifted. Aggregated2 operating expenses (excluding volume linked and Health Insurance business) have reduced 10% over the last quarter.

The performance highlights of the key subsidiaries of Aditya Birla Capital Ltd. were:

Lending:

• Overall lending book (NBFC and Housing Finance) stood at Rs. 58,073 Crore

• Maintained Core operating profit in NBFC and Housing Finance despite slow recovery under

lockdown

• Lending book is backed by well-matched asset and liability mix with adequate liquidity

• Raised over Rs. 1,500 Crore of long-term funds during the quarter

• Continue to have strong focus on quality of book with reduced ticket sizes across the board

NBFC business:

Loan book at Rs. 45,939 Crore; restarted lending with caution during the quarter with gradual ramp up of activity, currently 100% branches operational

Maintained Core operating profit with pre provision operating profit at Rs. 392 Crore,during the quarter

Additional COVID related provisions of Rs. 50 Crore in Q1 FY21

Cost to income ratio reduced by 223 bps from 33.5% in Q4 FY20 to 31.3% in Q1 FY21

The Net profit after tax stood at Rs. 140 Crore vis-à-vis Rs. 137 Crore in previous quarter

Housing Finance business

Loan book at Rs. 12,134 Crore, with 96% retail

Net interest margins expanded by 29 bps to 3.27% over previous year

Maintained core operating profit with pre provision operating profit at Rs. 52 Crore

Additional COVID related provisions of Rs. 12 Crore in Q1 FY21

Strong drive towards technology deployment to drive sales and customer engagement with 85% of sourcing digital in July ’20

The Net profit after tax for the quarter stood at Rs. 28 Crore vis-à-vis Rs. 21 Crore in Q4 FY20 and Rs. 27 Crore in Q1 FY20

Asset Management

• Overall closing assets under management grew by 8% to Rs. 2,17,643 Crore from March 20 to June 20

• Closing equity AUM grew by 19% to Rs. 78,017 Crore from March 20 to June 20

• Keeping its continued focus on building retail customer franchise, the retail AAUM grew by 12% over the last quarter; while the SIP AUM increased by 27%, quarter on quarter

• Maintained profitability with Profit before tax/AAUM at 24 bps vis-à-vis 22 bps in Q4 FY20

• Digital transactions account for 94% of overall transactions as compared to 81% in previous quarter

Insurance:

• Total gross premium of life insurance and health insurance grew 38% year on year to Rs. 1,936

Crore

Life Insurance business

Individual First Year Premium (FYP) grew 5% year on year to Rs. 309 Crore, significantly ahead of industry year on year degrowth of 23%

Consistent improvement in quality with 13th month persistency by 200 bps, year on year, to

81%, from 79%

Strong focus on digital with 96% individual business sourced digitally

Maintained gross margin at 33.1% despite falling interest rate scenario

Sharp reduction in Opex to premium ratio, year on year, from 23.1% to 16.3%

Aditya Birla Capital Limited: Press Release for the quarter ended 30th June 2020 Page 3/3

Health Insurance business

Gross written premium at Rs. 246 Crore; grew 72% over the previous year, ahead of industry growth of 16% for Stand Alone Health Insurers, with Retail business contributing

73%

Covering 8.9 million lives out of which over 5 million lives covered through micro and byte size products

Business continues to build scale with significant improvement in combined ratio at 132% vs. 146% in the previous year

Robust digital enablement with 98% digital issuance in Q1 FY21 vs. 93% in FY20 and digital renewals at 92% vs. 65% in previous year

Other businesses

Profit before tax grew 64% year on year to Rs. 41 Crore from Rs. 25 Crore

General Insurance broking profit before tax grew 20% year on year to Rs. 29 Crore driven by technology adoption

ARC platform continues to scale up with AUM at Rs. 2,500+ Crore

Aditya Birla Capital has a diversified portfolio of businesses catering to the lifetime money needs of its customers. This diversification also allows the company to capture opportunities in different segments of the market and deliver consistent growth.

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