Aditya Birla Capital Q1 Review - Steady Performance Despite Disruption: ICICI Securities
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ICICI Securities Report
Aditya Birla Capital Ltd. reported consolidated profit after tax of Rs 3.02 billion in Q1 FY22 (up 52% YoY, though down 19% QoQ) ahead of our expectations.
Q1 FY22 earnings reflected the company’s strategy of granularisation, retailisation and diversification within business segments.
With disruption in collection efficiency, stage-III assets and restructuring rose in both lending and housing finance business.
In both, rebound in net interest margins and controlled ‘cost to income’ offset spike in credit cost; return on asset/return on equity profile was stable.
Health insurance combined ratio rose by a sharp 154% on surge in Covid-19 claims.
Further investment in franchise, cross-sell and leveraging digital, will aid Aditya Birla Capital improve its RoE profile.
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