Aditya Birla Financial Services Group (ABFSG) registers robust growth in Q1 2010-2011

Profit Before Tax of Rs. 78 crores, as against a loss of Rs. 90 crores (y-o-y). End Quote

(1888PressRelease) August 08, 2010 - Highlights for the Quarter:
• Consolidated revenues for the financial services businesses was at Rs. 1,277 crores, registering growth of 22.5% (y-o-y)

• Profit Before Tax of Rs. 78 crores, as against a loss of Rs. 90 crores (y-o-y)

• Birla Sun Life Insurance registers profit for the first time, since inception

• The market share for Birla Sun Life Mutual Fund rose to 9.34% at the end of Q1 as against 8.34% at the end of March 2010

• Aditya Birla Money Mart ranked as the 2nd largest corporate distributor in terms of Assets under advice (AUA), as on 30th June, 2010 (CAMS report)

The Aditya Birla Financial Services Group (ABFSG) has built a significant presence across its verticals, viz., life insurance, asset management, private equity, NBFC, broking, insurance advisory and wealth management & distribution.

The consolidated revenues of ABFSG, for Q1 2010-11, crossed Rs. 1277 crores, registering a y-o-y growth of 22.5% over Rs. 1043 crores revenue attained in Q1 last year.

The consolidated Profit before Tax grew significantly to Rs. 78 crores as against a loss of Rs. 90 crores in Q1 last year.

Commenting on the performance, Ajay Srinivasan, Chief Executive - Financial Services, Aditya Birla Group said, "We are committed to being a leader and role model in a broad-based and integrated business and the customer will always be at the center of our strategy."

He further added, "We remain inspired by the India opportunity and the strong growth and savings pool that remains to be tapped to its full potential. All our business verticals entered the new year with their sights set on this potential and have delivered continued growth, in keeping with our momentum of recent years."

Here are some of the highlights by business for the quarter:
Birla Sun Life Insurance
• Achieved a major milestone this quarter recording a maiden profit of Rs. 9 crores, against a loss of Rs. 111 crores during the corresponding period last year.
• The total Life Insurance premium revenue of Rs. 1,143 crores reflected a growth of 18% over previous year
o The first year premium of Rs. 473 crores reflected a growth of 7%
o A strong growth in renewal premiums at 27% over the previous year
o Group Business had sales of Rs. 68 crores
• Ranked 5th among the private players, in terms of new business for Q1 FY11
• AUM grew by 44%, to Rs. 16,841 crores. All Birla Sun Life Insurance funds are consistently outperforming benchmarks and delivering superior investment performance
• Strengthened the share of non-unit linked portfolio in Q1, leading to a more balanced product mix

Birla Sun Life Mutual Fund
• Was the only AMC among the Top 5 to achieve a positive growth in average AUM during Q1, at a time when the industry as a whole lost over Rs. 70,000 crores AUM
• The market share rose to 9.34% at the end of Q1, as against 8.34% at the end of March 2010
• Profit before tax was Rs. 49 crores, as against Rs. 8 crores in Q1 of FY10; an increase of over 500%
• Equities net sales were Rs. 427 crores, against net redemptions in the Industry of Rs. 1,400 crores
• Total SIPs at the end of Q1 stood at Rs. 3,33,742, up from 3,04,993 at the end of March 2010

Birla Insurance Advisory and Broking Services
• Reinsurance broking revenue has grown by 268%
• Revenues for the company were at Rs. 10 crores reflecting a growth of 22%
• The PBT of Rs. 5crores demonstrates an increase of 12% over the corresponding period

Aditya Birla Finance (NBFC)
• Total book size of Rs. 1,205 crores reflecting an 18% quarter on quarter (q-o-q) growth
• The book size of the company's core lending business (CMG+CFD) itself crossed an important milestone by clocking Rs. 1,080 crores, a q-o-q growth of 42%
• Quarter revenues grew 29%, to Rs. 25 crores. The PBT stood at Rs. 11 crores

Aditya Birla Private Equity
• Mobilized Rs. 881 crores in its maiden fund and are now actively looking at multiple attractive deals across industries

Aditya Birla Money (Broking)
• Revenues increased to Rs. 28crores, an increase of 6% over the same period last year while industry equity volumes de-grew y-o-y by 26% during Q1
• During the quarter, 19 branches and 65 franchisees were added to the existing network
• Research Desk operational in Mumbai, comprising a team of 6 fundamental research members & 4 technical & derivative research members

Aditya Birla Money Mart (Wealth Management and Distribution)
• Total revenue increased from Rs. 7 crores to Rs. 17crores
• Assets under advice (AUA) increased from Rs. 11,700 crores in June 2009 to Rs. 16,500 crores in June 2010, an increase of 41%, of which the equity assets have grown from Rs. 1,500 crores to Rs. 1,800 crores
• Ranked as the 2nd largest corporate distributor in terms of AUA, as on 30th June, 2010 (CAMS report)
• Launched Real Estate advisory services
• Further strengthened spectrum of offerings with the launch of a new customer-convenience product, WRAP

About Aditya Birla Financial Services Group (ABFSG): The Aditya Birla Financial Services Group (ABFSG) has built a significant presence across its verticals viz., including life insurance, asset management, private equity, NBFC, broking, insurance advisory services and wealth management & distribution.

The seven companies representing Aditya Birla Financial Services Group are Birla Sun Life Insurance Company Ltd., Birla Sun Life Asset Management Company Ltd., Aditya Birla Capital Advisors Pvt. Ltd., Aditya Birla Money Ltd., Aditya Birla Money Mart Ltd ,Aditya Birla Finance Ltd. and Birla Insurance Advisory & Broking Services Ltd.

The ABFSG is committed to being a leader and role model in a broad based and integrated financial services business. Its 7 lines of businesses, with over 5.5 million customers manages assets worth USD 20 billion approximately and prides itself for having a talent pool of over 16,500 committed employees. ABFSG has its wings spread across more than 500 cities in India through more than 1650 branches and about 200,000 channel partners. This allows ABFSG to offer its customers virtually anything other than a savings or current account. With over one billion dollar revenue, ABFSG is a significant non bank player.

ABFSG is a part of Aditya Birla Nuvo Ltd (ABNL), a USD 3.5 billion conglomerate having leadership position across its manufacturing as well as services sector businesses. ABNL is a part of the Aditya Birla Group, a USD 29 billion Indian business house operating in 25 countries across the globe.

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