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Aditya Birla Capital Q1 Review - Steady Performance Despite Disruption: ICICI Securities

Aditya Birla Capital Q1 Review - Steady Performance Despite Disruption: ICICI Securities

<div class="paragraphs"><p>An Indian five hundred rupee banknote is arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)</p></div>
An Indian five hundred rupee banknote is arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

ICICI Securities Aditya Birla Capital Q1FY22 Results Update.pdf

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