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- ADITYA BIRLA CAPITAL 2021-22 Annual Report Analysis
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ADITYA BIRLA CAPITAL has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during the year 2021-22.
ADITYA BIRLA CAPITAL Income Statement Analysis
- Interest income during the year rose 15.6% on a year-on-year (YoY) basis.
- Interest expenses were down by 11.1% YoY during the same period.
- Operating expenses increased by 20.0% YoY during the year.
- The company's net interest income (NII) increased by 22.3% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at 14.1% in FY22 as against 13.1% in FY21.
- Other income increased by 38.5% YoY during the year.
- Net profit for the year increased by 51.4% YoY.
- Net profit margins during the year increased to 7.5% in FY22 from 5.8% in FY21.
ADITYA BIRLA CAPITAL Income Statement – 2021-22
| No. of Mths Year Ending | 12 Mar-21* | 12 Mar-22* | % Change | |
|---|---|---|---|---|
| Interest Income | Rs m | 195,537 | 226,076 | 15.6% |
| Other Income | Rs m | 1,734 | 2,401 | 38.5% |
| Interest Expense | Rs m | 39,187 | 34,820 | -11.1% |
| Net Interest Income | Rs m | 156,350 | 191,256 | 22.3% |
| Operating Expense | Rs m | 143,817 | 172,597 | 20.0% |
| Pre-provision Operating Profit | Rs m | 14,267 | 21,060 | 47.6% |
| Provisions & Contingencies | Rs m | 316 | 349 | 10.3% |
| Profit before tax | Rs m | 12,773 | 19,458 | 52.3% |
| Tax | Rs m | 4,400 | 6,267 | 42.4% |
| Profit after tax | Rs m | 11,265 | 17,060 | 51.4% |
| Minority Interest | Rs m | 209 | 459 | 119.7% |
| Net Interest Margin | % | 13.1 | 14.1 | |
| Net profit margin | % | 5.8 | 7.5 | |
* Results Consolidated
Source: Accord Fintech, Equitymaster
Latest Report: 3 Value Rich Stocks
ADITYA BIRLA CAPITAL Balance Sheet Analysis
- The company's deposits during FY22 stood at Rs 0 m as compared to Rs 0 m in FY21, thereby witnessing an increase of 0.0%.
- Advances for the year stood at Rs 655.2 bn as compared to Rs 594.3 bn during FY21, a rise of 10.2%.
- Cost of deposits for ADITYA BIRLA CAPITAL rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
- The lender's investments rose to Rs 697.7 bn during the year from Rs 595.2 bn in FY21.
- Borrowing stood at Rs 97.3 bn, a growth of 56.1% as compared to previous year.
- Overall, the total assets and liabilities for FY22 stood at Rs 1,408.2 bn as against Rs 1,244.8 bn during FY21, thereby witnessing a rise of 13.1%.
ADITYA BIRLA CAPITAL Balance Sheet – as on March 2022
| No. of Mths Year Ending | 12 Mar-21* | 12 Mar-22* | % Change | |
|---|---|---|---|---|
| Networth | Rs m | 135,674 | 152,998 | 12.8% |
| Advances | Rs m | 594,332 | 655,236 | 10.2% |
| Deposits | Rs m | 0 | 0 | 0.0% |
| Yield on advances | % | 0.0 | 0.0 | |
| Cost of Deposits | % | 0.0 | 0.0 | |
| Investments | Rs m | 595,193 | 697,699 | 17.2% |
| Borrowings | Rs m | 62,327 | 97,281 | 56.1% |
| Total Assets | Rs m | 1,244,846 | 1,408,151 | 13.1% |
* Results Consolidated
Source: Accord Fintech, Equitymaster
Current Valuations for ADITYA BIRLA CAPITAL
- The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.1, an improvement from the EPS of Rs 4.7 recorded last year.
- The price to earnings (P/E) ratio, at the current price of Rs 107.7, stands at 16.7 times its trailing twelve months earnings.
- The price to adjusted book value (P/ABV) ratio at current price levels stands at 1.7 times, while the price to income ratio stands at 1.3 times.
Per Share Data/Valuations
| No. of Mths Year Ending | 12 Mar-21* | 12 Mar-22* | |
|---|---|---|---|
| Income per share (Unadj.) | Rs | 81.0 | 93.6 |
| Earnings per share (Unadj.) | Rs | 4.7 | 7.1 |
| Diluted earnings per share | Rs | 4.7 | 7.1 |
| Avg P/E ratio | Rs | 19.4 | 16.7 |
| Avg P/ABV ratio | Rs | 2.1 | 1.7 |
| Avg Market Cap | Rs | 218,281 | 284,521 |
| Dividends per share (Unadj.) | Rs | 0.00 | 0.00 |
* Results Consolidated
Source: Accord Fintech, Equitymaster
Ratio Analysis for ADITYA BIRLA CAPITAL
Efficiency Ratios
Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 65,523,590.0x during FY22, from 59,433,220.0x during FY21. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.
Debt to Equity Ratio: The company's debt to equity ratio increased and stood at 0.64x during FY22, from 0.46x during FY21. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.
Liquidity Ratios
Capital Adequacy Ratio (CAR): ADITYA BIRLA CAPITAL's capital adequacy ratio (CAR) was at 0.0% as on 31 March 2022 as compared to 0.0% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.
A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.
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So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.
Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.
Profitability Ratios
Return on Equity (ROE): The return on equity (ROE) ratio for the company improved and stood at 11.2% during FY22, from 8.3% during FY21. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.
Return on Assets (ROA): The return on asset (ROA) ratio of the company improved and stood at 1.21% during FY22, from 0.90% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.
Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 7.76% during FY22, from 7.72% during FY21. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.
NPA Ratios
Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. ADITYA BIRLA CAPITAL's gross NPA ratio stood at 0.0% as of 31 March 2022 compared to 0.0% in the same period a year ago.
A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.
Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.
The net NPA ratio of ADITYA BIRLA CAPITAL was 0.0% in financial year 2022. This compared with 0.0% a year ago.
Key Ratio Analysis
| No. of Mths Year Ending | 12 Mar-21* | 12 Mar-22* | |
|---|---|---|---|
| Credit/Deposit Ratio | x | 59,433,220.0 | 65,523,590.0 |
| Debt to Equity Ratio | x | 0.5 | 0.6 |
| Loans / Deposits | x | 0.0 | 0.0 |
| Capital Adequacy Ratio | % | 0.0 | 0.0 |
| Return on Equity | % | 8.3 | 11.2 |
| Return on Assets | % | 0.9 | 1.2 |
| Return on Capital Employed | % | 7.7 | 7.8 |
| % of Gross NPAs | % | 0.0 | 0.0 |
| % of Net NPAs | % | 0.0 | 0.0 |
| Yield on Advances | x | 0.0 | 0.0 |
| Yield on Investments | x | 0.0 | 0.0 |
* Results Consolidated
Source: Accord Fintech, Equitymaster
To see how ADITYA BIRLA CAPITAL has performed over the last 5 years, please visit here.
ADITYA BIRLA CAPITAL Share Price Performance
Over the last one year, ADITYA BIRLA CAPITAL share price has moved down from Rs 119.4 to Rs 107.7, registering a loss of Rs 11.7 or around 9.8%.
Overall, the S&P BSE SENSEX is up 16.8% over the year.
(To know more, you can check out historical annual results for ADITYA BIRLA CAPITAL here and quarterly results for ADITYA BIRLA CAPITAL here)
Annual Report FAQs
What is the current share price of ADITYA BIRLA CAPITAL?
ADITYA BIRLA CAPITAL currently trades at Rs 226.2 per share. You can check out the latest share price performance of ADITYA BIRLA CAPITAL here...
What was the net interest income of ADITYA BIRLA CAPITAL in FY22? How does it compare to earlier years?
The net interest income of ADITYA BIRLA CAPITAL stood at Rs 191,256 m in FY22, which was up 22.3% compared to Rs 156,350 m reported in FY21.
ADITYA BIRLA CAPITAL's net interest income has grown from Rs 87,055 m in FY18 to Rs 191,256 m in FY22.
Over the past 5 years, the net interest income of ADITYA BIRLA CAPITAL has grown at a CAGR of 21.7%.
What was the net profit of ADITYA BIRLA CAPITAL in FY22? How does it compare to earlier years?
The net profit of ADITYA BIRLA CAPITAL stood at Rs 17,060 m in FY22, which was up 51.4% compared to Rs 11,265 m reported in FY22.
This compares to a net profit of Rs 9,198 m in FY20 and a net profit of Rs 8,709 m in FY19.
Over the past 5 years, ADITYA BIRLA CAPITAL''s net profit has grown at a CAGR of 25.3%.
What does the Key Ratio analysis of ADITYA BIRLA CAPITAL reveal?
Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.
The ratio/financial analysis of ADITYA BIRLA CAPITAL reveals:
- Net interest margin increased from 13.1% in FY21 to 14.1% in FY22.
- Net profit margins grew from 5.8% in FY21 to 7.5% in FY22.
- Debt to Equity ratio for FY22 stood at 0.6 as compared to 0.5 in FY21.
Here's the ratio/financial analysis of ADITYA BIRLA CAPITAL for the past 5 years.
| FY18 | FY19 | FY20 | FY21 | FY22 | |
|---|---|---|---|---|---|
| Net Interest Margin (%) | 9.6 | 10.6 | 11.7 | 13.1 | 14.1 |
| Net Profit Margin (%) | 5.9 | 5.6 | 5.3 | 5.8 | 7.5 |
| Debt to Equity Ratio (x) | 1.9 | 1.4 | 0.5 | 0.5 | 0.6 |
Read: Latest Annual Report Analysis of ADITYA BIRLA CAPITAL
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