Aditya Birla Capital Limited
9,518words
6turns
0analyst exchanges
0executives
Key numbers — 40 extracted
rs,
54.2%
16.8%
100%
51%
74%
50%
RS
51
31%
11%
24%
3%
Guidance — 1 items
Products in pipeline
opening
“Plan to achieve 25% contribution by FY23 end.”
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Risks & concerns — 2 flagged
RaR: Risk Adjusted Return = Net Interest Margin (incl.
— PCR
▪ Increase in Non-PAR mix is due to higher demand ▪ New Par Product launch has helped in recalibrating the product mix with shift in FTM Sep’22 mix from Guaranteed to Par (~5.6% increase in Par from Aug to Sep) Active Risk Mitigation Strategy ▪ 100% expected maturity and survival benefits are hedged through FRA depending on interest rate scenario.
— Products in pipeline
Speaking time
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Opening remarks
PCR
49.3% PCR ↑ 5% Y-o-Y CE2: 99.2% in Q2 ₹ 488 Cr 14.7% ↑ 26% Y-o-Y ↑ 6% Q-o-Q ↑ 145 bps Y-o-Y ↑ 32 bps Q-o-Q Retail + SME3 Book ₹ 42,034 Cr 65% of Loan Book ↑ 50% Y-o-Y | ↑ 14% Q-o-Q Added 1.2 Mn customers Active Customers: 5.3 Mn ↑ 47% vs Mar’22 Highest ever quarterly profit thus far Continue to deliver superior RoA of 2.4% 1GS3 as per IndAS; Higher by Rs 280 Cr (43 bps) as per IRAC 2CE: Collection Efficiency 3Includes HNI Book # 12 Our Approach 1 2 3 4 Retail portfolio expansion and increasing granularization Specific industry focus & digital platform to drive SME & B2B segment Acquiring customers at scale using digital ecosystems & data analytics Increase direct sourcing through branch expansion in Tier 3/4 markets 13 # 13 Highest ever quarterly PBT |↑ 26% Y-o-Y | ↑ 6% Q-o-Q Profit Before Tax (in INR Crore) 459 488 387 Q2 FY22 2.4% 13.2% RoA RoE Q1 FY23 2.5% 14.3% Q2 FY23 2.4% 14.7% PBT Growth ↑ 6% Q-o-Q ↑ 26% Y-o-Y RaR1 & RoA RaR ↑ 28 bps Y-o-Y Continue to deliver superior RoA Return
Products in pipeline
Credit Opportunities Fund Seed funding approval received for Greater India ESG Engagement Fund for Global Investors Plan to launch funds for NRIs and LRS investors in India after regulatory clearance Second Close completed Aditya Birla Real Estate Credit Opportunities Fund (Category II AIF) First Investment from the fund concluded Collaborating with BentallGreenOak, to conduct Roadshows for Offshore Real Estate Fund 1 Closing AUM for ETFs/FoFs/Index Funds 2 Since Sep-2021 3 Avg AUM for Q2 FY23 Aditya Birla Capital Limited 44 Digital Assets & Partnerships Customer Onboarding 75% Customer Servicing 88% Distributor Onboarding 92% Digital Transactions 82% Enhancing Digital Capabilities Customer Journey Digital Integration Data & Analytics Enhancing investor experience & instant access to functionalities by providing better UI/UX Automation Automated internal processes to bring in efficiency using low code business platform API platform for rapid integration with partners and fintechs Cutti
Product Features
10% Early Bird discount at <35 years age Earn up to 50% HealthReturnsTM 10% discount on Industry 1st digital Face Scan 100% unlimited Sum Insured Refill | Maternity & Modern treatments All figures in Rs Crores OPD : Out-patient expenses | MFI : Micro finance institutions 64 Scaled-up, Diversified and Digitally enabled Distribution Most Diverse Distribution MIX Total GWP (Rs. Crores) 4800+ Cities 200+ Branches 70K Agents 10K+ Hospital Partners 3K+ Sales Force Proprietary Growth at 38 % One ABC led branch expansion on track Banca Growth at 18 %
New relationship
IDFC First Bank, State Bank of Sikkim Digital Growth at 131% Travel / Ride / Stay / Telco / Loan Insurance Proprietary includes Agency, Feet on Street & Telesales | MFI’s : Micro finance Institutions +37% 579 23% 54% 9% 4% 9% 791 23% 47% 15% 6% 9% H1FY22 H1FY23 Proprietary CA/Brokers Banks Digital Rural 65 Leveraging Digital to Enhance Customer & Distributor Experience Digital Suit End to End Journey App - Digital health eco system Chatbot & WhatsApp Servicing Onboarding & Retention Hyper Personalization Omni Channel Experience Buy & Renewal Journey Digital Claims Journey Distributor Ecosystem End-to-end integrations Business Intelligence Lead Management System Distributor Self-service Integrated sales journeys Cloud Architecture Consumer profiling & segmentation Curated sales insights/reports t s r i F r e m o t s u C n o i t a r g e t n I r o t u b i r t s i D 98% Customers onboarded digitally across businesses 3.6 Mn Digital customer interactions 93% Services available digitally 67%
Automated underwriting engine
1000+ STP clusters OCR Based Claims: 100,000+ OCR claims digitized Pre-Issuance FWA: Rule based engine to control LR at Sourcing KEY LEVERS Organization wide data lake Eco system of in-house / ABC / ABG / Partner capabilities Deep expertise in AI / ML / NLP / Anomaly / Computer vision 67 Superior Customer Experience 10,277 8,918 7,595 k r o w t e N r e d i v o r P e g r a L H1 FY21 H1 FY22 H1 FY23 Extensive backend Claims processing Systems | Digital Claims Adjudication | Centralized Claims Processes 96% Best in Industry Claims Settlement Ratio# # Claims Settlement by Count 68 Business Outcomes Revenue (Rs. Cr.) Lives Covered (Mn.) GWP growth at 66% Y-0-Y Lives covered growth at 48% Y-0-Y Retail & Rural Group 18% 550 82% +131% 764 76% 24% 1,271 62% 38% H1FY21 H1FY22 H1FY23 Rural Byte Retail & Group 2 10 4 4 H1FY21 +151% 16 6 6 4 24 13 6 5 H1FY22 H1FY23 Combined Ratio* Profit Before Tax (Rs. Cr.) H1FY23 exit combined ratio at 112%* H1 FY23 PAT at Rs. (149) Cr. 129% 144% 112% -230 -124 -
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