Aditya Birla Capital Ltd

The provided pages of the ABCL Q4 FY25 Earnings Call transcript do not contain specific information about the current or expected order book or pending orders for Aditya Birla Capital Limited. The discussion focuses primarily on financial performance, loan portfolios, insurance business metrics, digital initiatives, asset management, and risk management. If you need detailed information on order book or pending orders, you may need to refer to other sections of the earnings report or company filings specifically addressing project statuses or order books.

- The company currently has a Capital Adequacy Ratio (CRAR) of 16.54%, above the regulatory requirement of 15%. - Internal target for CRAR is between 16.5% to 17%, indicating no immediate pressure to raise additional capital. - INR 1,200 crores have already been infused recently. - Tier 1 ratio stands at 14.3%, with sufficient headroom to raise subordinated debt if required. - For growth capital needs, especially for the Housing Finance Company (HFC) segment, support will be provided by the holding company (ABC). - There is no immediate indication of plans for large-scale new fundraising through equity or debt; however, the company retains the flexibility to raise capital as needed for growth or regulatory compliance. - The company also has the option to raise sub-debt from the market if required.

- Significant investments have been made in digital assets and platforms, including personal, consumer, and MSME segments (e.g., Udyog Plus) to enhance productivity and growth. - Capacity building in the housing finance business has involved increased branch network and operational capability, reflected in a 47% opex increase indicating front-loaded expense for future efficiency. - Capital infusion of INR 1,200 crores has been done in FY25; internal capital adequacy target ranges between 16.5% to 17% CRAR for the housing finance company (HFC). - Further growth capital for HFC will be supported by the operating and holding company, with ability to raise sub-debt from the market if required. - Continual investments in AI and analytics in insurance for sales training and customer experience improvement. - Focus on expanding digital infrastructure across onboarding, underwriting, customer service, and claims. - New product launches in insurance (4 in FY25) and planned channel enhancements to drive growth. Overall, the company is strategically investing in digital transformation, capacity expansion, and capital adequacy to support a doubling of loan book and increased productivity over the next 3 years.

- Life Insurance Business aims for 20-25% CAGR over next 3 years in business growth. - Intends to double the value of Net VNB in next 3 years while expanding VNB margins beyond 18%. - Health Insurance sector optimistic on long-term growth; aims to maintain <100 CoR under new standards. - Asset Management AUM crossed ₹100,000 crore in April 2025, with steady 15% YoY growth. - Housing Finance to leverage increased capacity and productivity, aiming at robust growth supported by ecosystem channels. - NBFC loan book targeting to double in 3 years with focus on improving mix and product suite. - Personal & Consumer loan share to increase from 12% towards 20% over 3 years, improving yields and margins. - Digital adoption and new product launches across segments expected to drive further volume and revenue growth.

- ABSLI expects a CAGR of 20-25% in business growth over the next 3 years with expansion in VNB margins and doubling of Net VNB value. (Page 11) - Health Insurance business achieved breakeven with a profit of Rs. 6 crores in FY25 and aims to maintain profitability under new accounting standards. (Page 11) - ROA targeted to improve from 1.46% to between 2.00-2.20% over the next 8-10 quarters driven mainly by operating leverage, reduction in opex to average loan book by 100-130 bps, stable credit costs, despite slight margin compression. (Page 16) - Operating leverage aided by front-loading of expenses and productivity gains expected for HFC business. (Page 16) - Life insurance operating margin expansions are supported by better lapse experience, persistency, and mortality improvements. (Page 23) - Overall, earnings growth driven by capacity addition, productivity improvement, and efficient cost management across businesses. (Pages 16, 23)