EUR 120.00 For Business Accounts Only

MOSL : ADITYA BIRLA CAPITAL: Good quarter; strong performance across most businesses

.  ADITYA BIRLA CAPITAL: Good quarter; strong performance across most businesses

(ABCAP IN, Mkt Cap USD3.2b, CMP INR106, TP INR140, 32% Upside, Buy)

• Consolidated revenue grew 26% YoY to INR58.6b in 1QFY23. Consolidated PAT (after minority interest) grew 42% YoY to ~INR4.3b in 1QFY23.
• The management has been steadfast and has exhibited high agility in its journey towards its FY24 targets, a large proportion of which has either been achieved or will be over the course of FY23.

NBFC: Continued improvement in share of SME, HNI, and Retail  

• Loan book grew 26% YoY to INR578.4b. Retail, SME, and the HNI loan book grew 39% YoY, with its proportion in the mix growing to 64% (PY: 58%).
• Disbursements were strong at INR80.4b, up 3.1x YoY, with Retail, SME, and HNI constituting 73% of disbursements.
• NIM and fees improved to 6.5% (up 33bp YoY), aided by growth in Retail and SME. The cost of funds has reached yet another multi-quarter low of ~6.7%.
• GS3 grew 10bp QoQ to 3.2% under RBI's revised asset classification norms, with credit costs at 1.1%.

 

Housing Finance: Affordable segment continues to gain momentum

• Disbursements rose 170% YoY in 1QFY23, led by Affordable Housing Finance (constituting 48% of total disbursements)
• Loan book grew 7% YoY to INR120.5b, with 94% Retail in the mix. The proportion of Affordable Housing improved to 39% (PQ: 31%).
• NIM improved to ~4.6% (up 60bp YoY) in 1QFY23, with a CIR ratio of ~41%. GS3 increased to 2.2% (up ~15bp QoQ), with credit costs at 52bp. Restructured loan book under moratorium stood at 3%.
• Proportion of direct sourcing stood at 72%. The management targets to increase direct sourcing by 3x YoY. The management said ~80% of its presence will be in Tier III and IV cities.