Aditya Birla Sun Life AMC (ABSLAMC) Q1 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly profit in Q1 FY25, driven by improved asset mix, cost management, and strong AUM growth, with overall average AUM at ₹3,625 bn, up 19% year-over-year.

• Expanded retail franchise to 9.4 million folios, outpacing industry growth, and broadened distribution to over 83,000 distributors and 300+ locations, focusing on B-30 cities.

• Accelerated growth in passive and alternative investments, with passive AUM rising 14x since June 2021 to ₹299 bn.

• Leveraged digital platforms and robust risk management to enhance customer experience and operational efficiency.

• Standalone and consolidated financial results for the quarter ended June 30, 2024, were reviewed and approved by the Board on July 24, 2024.

Financial highlights

• Total revenue rose 24% year-over-year to ₹418 crore (standalone: ₹380.47 crore; consolidated: ₹386.62 crore); profit after tax up 28% to ₹235.71 crore (consolidated).

• Quarterly average AUM (including alternatives) reached ₹3,620 bn, up 19% year-over-year; mutual fund quarterly average AUM at ₹3,470 bn; equity AUM at ₹1,670 bn.

• SIP flows for the quarter were ₹3,700 crore; SIP AUM as of June end was ₹77,000 crore.

• Operating profit for Q1 FY25 was ₹2,097 mn, up 29% year-over-year; profit before tax was ₹3,045 mn, up 27%.

• Standalone basic EPS for the quarter was ₹8.11; consolidated basic EPS was ₹8.18.

Outlook and guidance

• Expense growth guided at 10%-12% for both employee and administrative costs.

• Continued focus on brand expansion, digital, and alternative business verticals, with plans to launch new funds and expand GIFT City offerings.

• Ongoing initiatives to deepen penetration in emerging and rural markets and enhance digital engagement.

• Emphasis on sustainable SIP growth and broadening passive and alternative investment products.

• A final dividend of ₹13.50 per equity share for FY24 has been proposed, pending shareholder approval.