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195	195	= Business Segments =
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197		-Aditya Birla Finance Limited (NBFC)
	197	+== Aditya Birla Finance Limited (NBFC) ==
198	198
199		-Aditya Birla Finance Limited (ABFL) is among India’s leading private and diversified non-banking financial services (NBFC) companies, offering end-to-end financing and wealth management solutions to a wide range of customers across the country. ABFL caters to varied financial requirements of a wide range of customers across retail, High Networth Individual (HNI), ultra HNI, micro enterprises, Small and medium enterprise (SME), large and mid-corporates.{{footnote}}https://www.adityabirlacapital.com/about-us{{/footnote}}
	199	+Aditya Birla Finance Limited (ABFL) is among India’s leading private and diversified non-banking financial services (NBFC) companies, offering end-to-end financing and wealth management solutions to a wide range of customers across the country. ABFL caters to varied financial requirements of a wide range of customers across retail, High Networth Individual (HNI), ultra HNI, micro enterprises, Small and medium enterprise (SME), large and mid-corporates.{{footnote}}https://www.bseindia.com/bseplus/AnnualReport/540691/5406910320.pdf{{/footnote}}
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201		-[[https:~~/~~/www.bseindia.com/bseplus/AnnualReport/540691/5406910320.pdf>>url:https://www.bseindia.com/bseplus/AnnualReport/540691/5406910320.pdf]]
	201	+**Industry Overview**
202	202
203		-
204		-Industry Overview
205		-
206	206	NBFCs play an important role in the Indian financial system by complementing the banking sector and leveraging on their efficient and nimble operations, to promote their tailor-made products. Their role in promoting financial inclusion and catering to the needs of small businesses and specialised segments give an additional dimension to their importance.
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208	208	Although the NBFC sector grew by 18% year-on-year in FY 19, the pace of expansion was lower in FY 19, mainly due to credit downgrades and liquidity squeeze within the sector. NBFC growth in H1 FY 20 moderated to 6% due to lower credit demand.
209	209
210		-Performance Review
	207	+**Performance Review**
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212	212	The overall lending book was at Rs 47,057 Crore as on 31st March, 2020, due to systematically reduced exposure/disbursement to the large and mid-corporate segment. The Retail, SME and Ultra HNI segments continue to constitute ~~50% of the portfolio from 47% in FY 18. ABFL has continued to focus on new disbursement in select growth segments. The retail and SME segments continue to grow, reiterating the successful strategy of diversifying the loan book as well as maintaining its focus on the high-margin retail segment.
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218	218	During FY 20, ABFL’s revenue grew by 11% from Rs 5,607 Crore to Rs 6,202 Crore. Net Profit After Tax de-grew marginally from Rs 869 Crore to `821 Crore. Net worth expanded by 9% year-on - year from Rs 7,417 Crore to `8,078 Crore, led by internal accruals.
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	217	+**Outlook**
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221		-Outlook
222		-
223	223	With the uncertain growth and a slowdown in credit demand, NBFCs are expected to turn cautious, going forward. The sector faced liquidity pressure with higher funding cost and is expected to face headwinds for asset quality. The profitability of NBFCs is expected to be under pressure, with lower credit growth and higher credit cost. Business models of NBFCs will be tested for resilience as the economy gradually recovers from the pandemic. The players with their strong liability profiles and strong risk controls in the assets size, are expected to be better positioned.
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225	225	ABFL, with its strong parentage and liquidity, is well-equipped to build future growth. ABFL foresees opportunity across the spectrum of its customers, out of which the SME and retail opportunity is estimated to be the largest. Besides the asset quality, effective implementation of technology and cost optimisation would remain the company’s key focus areas for achieving profitable and sustainable growth.
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	223	+== Aditya Birla Housing Finance Limited ==
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228		-Aditya Birla Housing Finance Limited
229		-
230		-
231	231	Aditya Birla Housing Finance Limited (ABHFL) is registered with the National Housing Bank as a housing finance company under the National Housing Bank (NHB) Act, 1987. ABHFL offers a comprehensive range of housing finance solutions such as Home loans, Home Extension Loans, Plot & Home Construction Loans, Home Improvement Loans, Loans Against Property, Construction Financing, Commercial Property Purchase Loan and Property Advisory Services.
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233		-Industry Overview
	227	+**Industry Overview**
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235	235	HFCs were undergoing a challenging period on the back of muted demand and emerging asset quality concerns. This was aggravated by the near halt in economic activities following the COVID-19 outbreak. The total housing credit outstanding stood at Rs 20.7 Lakh Crore, as on December 31, 2019. The pressure on asset quality is expected to mount due to the lockdown and the consequent impact on borrower cash flows and viability. The overall gross non-performing assets or GNPAs increased to 2.2% as on December 31, 2019 vs. 1.6% as on March 31, 2019 due to a deterioration across HFCs in the wholesale loan construction finance segment, given the tight liquidity faced by some developers with delayed projects and the reduced fund availability for the developers.
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237		-Performance Review
	231	+**Performance Review**
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239	239	ABHFL continues to grow its loan book with an increasing focus on its retail mix. The Company's loan book grew 22% CAGR over the last two years from Rs 8,137 Crore in FY 18 to Rs 12,102 Crore in FY 20. The affordable housing loan book grew six times over last two years to ~~`2,250 Crore as on March 2020. The retail mix has improved from 89% to 95% over the last two years. The company's approach during FY 20 was to increase retailisation, achieve greater granularity and reduce construction finance exposure.
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243	243	Revenue grew 27% year-on-year to Rs 1,298 Crore, in line with an increase in its book size, while the net interest margin has been maintained at 3.04%. ABHFL reported Earnings Before Tax at Rs136 Crore against Rs 107 Crore in FY 19. The net worth has expanded from Rs1,190 Crore in FY 19 to Rs1,383 Crore in FY 20. A sum of Rs100 Crore was infused during the year to fund the loan book growth.
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245		-Outlook
	239	+**Outlook**
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247	247	Long-term growth outlook for the housing finance sector remains favourable owing to the Government of India’s focus on ‘Housing for All’ initiative, improved affordability and favourable demographics. These factors, coupled with the current low penetration levels, are likely to boost growth in the housing segment.
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249	249	ABHFL is aiming to build a scalable and profitable book through the optimal product-sourcing-customer mix. The Company’s thrust is on building a robust technology platform for customer acquisition, offering quality customer service for better retention and creating operating efficiencies.
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	245	+== Aditya Birla Sun Life AMC Limited (AMC) ==
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252		-Aditya Birla Sun Life AMC Limited (AMC)
253		-
254	254	Since 1994, Aditya Birla Sun Life AMC Limited (ABSLAMC) has been one of India’s leading fund managers. It caters to a diverse customer cross-section through a wide variety of investment solutions focused on regular income, wealth creation and tax savings, among others. ABSLAMC is India’s fourth largest mutual fund (excluding ETF), based on domestic Average Assets Under Management (AAUM) as published by Association of Mutual Fund Industry (AMFI) for the quarter ended March 2020.
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256		-Industry Overview
	249	+**Industry Overview**
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258	258	India’s mutual fund industry comprises 44 asset management companies. The top 5 asset management companies, contribute to 57% of industry’s AAUM (Source: Association of Mutual Funds in India.
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