Aditya Birla Sun Life AMC Limited , one of India's leading asset management companies, has reported robust financial results for the first quarter, showcasing significant growth across key metrics.

Strong Financial Performance

The company's profit after tax (PAT) surged by 18% year-on-year to ₹277.10 crore in Q1, up from ₹235.70 crore in the same quarter last year. This impressive growth was accompanied by a 22% increase in profit before tax (PBT), which reached ₹372.30 crore, compared to ₹304.50 crore in the corresponding quarter of the previous fiscal year.

Revenue from operations saw a substantial rise of 16% year-on-year, climbing to ₹447.40 crore from ₹386.60 crore in the corresponding quarter of the previous fiscal year. The company's total revenue, including other income, stood at ₹565.30 crore, marking a 17.43% increase from ₹481.40 crore in the same period last year.

Asset Under Management (AUM) Growth

Aditya Birla Sun Life AMC achieved a significant milestone by crossing ₹4 lakh crore in mutual fund AUM. The company's overall average AUM, including alternate assets, reached ₹4.43 lakh crore, representing a robust 21% year-on-year growth. The mutual fund quarterly average AUM stood at ₹4.03 lakh crore, growing by 14% compared to the same period last year.

Equity and SIP Performance

The quarterly equity average AUM increased by 11% year-on-year to ₹1.80 lakh crore. The company's SIP (Systematic Investment Plan) book showed strong traction, with SIP contributions reaching ₹1,140 crore across 38 lakh accounts. SIP AUM now contributes approximately 45% of the total AUM, indicating a high level of sticky assets.

Operational Highlights

• The company's operating profit rose by 20.74% year-on-year to ₹266.00 crore.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 21.83% to ₹383.90 crore.
• The operating profit margin (OPM) improved to 59.45% from 56.97% in the same quarter last year.

Alternate Business Growth

Aditya Birla Sun Life AMC witnessed impressive growth in its PMS (Portfolio Management Services) and AIF (Alternative Investment Fund) assets. These assets grew 8-fold year-on-year, primarily driven by the ESIC (Employees' State Insurance Corporation) mandate, reaching ₹28,657 crore from ₹3,368 crore in the same quarter of the previous year.

Management Commentary

Mr. A. Balasubramanian, Managing Director and CEO of Aditya Birla Sun Life AMC, commented on the results, stating, "We have witnessed a healthy business momentum in Q1. The net sales for Q1 delivered strong growth, exceeding the net sales of the entire previous fiscal year, reflecting a strong overall positive business momentum driven by improved fund performance across all categories and various ongoing initiatives."

He further added, "We are expanding our product offering with innovative launches to better serve the diverse needs of our growing investor base. We are also hosting regional growth summits for deeper engagement with our distribution partners, empowering them to amplify our market reach and strengthen our positioning for sustained growth ahead."

Future Outlook

The company is focusing on expanding its alternate business offerings, including PMS and AIF products, to cater to the evolving needs of HNIs and family offices. Aditya Birla Sun Life AMC is also preparing to launch new funds under its GIFT City platform, aiming to tap into both inward and outward remittance opportunities.

With its strong financial performance, growing AUM, and strategic initiatives in place, Aditya Birla Sun Life AMC appears well-positioned to capitalize on the growth opportunities in India's asset management industry.

Aditya Birla Sun Life AMC Limited (ABSLAMC), one of India's leading asset management companies, has reported a robust financial performance for the first quarter. The company's consolidated net profit jumped 17% year-on-year to ₹2.77 billion, up from ₹2.36 billion in the same period last year.

Strong Revenue Growth

The asset management company's revenue from operations witnessed a significant increase, rising to ₹4.47 billion in Q1, compared to ₹3.90 billion in the same quarter of the previous year. This represents a solid 14.6% year-on-year growth, reflecting the company's continued business expansion across its operations.

Assets Under Management

ABSLAMC's overall Quarterly Average Assets Under Management (QAAUM), including alternate assets, grew by an impressive 21% year-on-year to ₹4,433.00 billion for the quarter. The Mutual Fund QAAUM also saw a healthy increase of 14% year-on-year, reaching ₹4,035.00 billion.

Equity and Individual AUM Growth

The company's Equity Mutual Fund QAAUM increased by 11% year-on-year to ₹1,802.00 billion for the quarter. Notably, the Equity Mutual Fund mix stood at 44.7% of the total AUM.

Individual Monthly Average AUM (MAAUM) has shown a 10% year-on-year growth, reaching ₹2,038.00 billion. The Individual mix now represents 49% of the Mutual Fund AUM, indicating strong retail investor participation.

Expansion in B-30 Cities

ABSLAMC has made significant strides in expanding its presence beyond the top 30 cities (B-30). The B-30 Monthly AAUM increased by 12% year-on-year to ₹722.00 billion, now accounting for 17.4% of the Mutual Fund AUM.

SIP and Investor Base

The company's Systematic Investment Plan (SIP) book continues to show strength. The monthly SIP contribution (including Systematic Transfer Plans) stood at ₹11.40 billion, with 3.86 million active SIP accounts. During the quarter, ABSLAMC registered approximately 583,000 new SIPs.

ABSLAMC's investor base has also expanded, with the company now servicing 10.7 million folios, representing a 14% year-on-year increase.

Management Commentary

A. Balasubramanian, Managing Director and CEO of Aditya Birla Sun Life AMC Limited, commented on the results: "Our strong Q1 performance reflects the resilience of our business model and the trust our investors place in us. The significant growth in our AUM, particularly in the equity and individual investor segments, underscores our commitment to delivering value to our customers. We remain focused on expanding our reach, especially in B-30 cities, and enhancing our product offerings to meet diverse investor needs."

Future Outlook

With a robust distribution network of over 89,000 empaneled Mutual Fund Distributors across more than 300 locations, ABSLAMC is well-positioned to capitalize on the growing investor interest in mutual funds. The company's strong performance in Q1 sets a positive tone for the rest of the fiscal year, as it continues to focus on scaling its retail franchise and diversifying its product offerings.

As the Indian mutual fund industry continues to evolve, Aditya Birla Sun Life AMC's strategic focus on expanding its reach, particularly in B-30 cities, and its emphasis on digital initiatives are likely to play crucial roles in sustaining its growth momentum in the coming quarters.