New Delhi: Aditya Birla group chief Kumar Mangalam Birla has said that the financial services sector will chart a robust growth path ahead and his business conglomerate is all set to make new records in this space.

"I believe that this (financial services) sector is bound to grow as we go forward, since much of its potential is still unlocked," Birla said.

"Backed by its strong customer base, nation-wide distribution footprint and brand salience, Aditya Birla Financial Services is all set to create a new record," he said.

Listing out the performance of various businesses in his annual message to the shareholders of Aditya Birla Nuvo Ltd, Birla said the financial services business has become the largest contributor to the company's profits.

Aditya Birla Nuvo Ltd (ABNL) is the group's holding company for financial services, telecom, fashion and lifestyle, IT-ITeS and manufacturing businesses.

"I am pleased to record that our financial services business continues to bolster its position as a significant Non-bank Financial Services player," Birla said.

"Despite the tectonic shifts in the environment, with volatile capital markets and regulatory changes, Aditya Birla Financial Services posted revenue of USD 1.3 billion (Rs 6,550 Crore) and a 27 percent bottom-line growth," he added.

Aditya Birla Financial Services (ABFS) recorded a net profit of Rs 539 crore in 2011-12, up from Rs 309 crore in the previous year.

The revenue rose from Rs 6,313 crore to Rs 6,550 crore, with significant contribution from Birla Sun Life Insurance and its non-deposit taking NBFC subsidiary Aditya Birla Finance Ltd.

Aditya Birla Nuvo said in its annual report for 2011-12 that it would continue to pursue strategic objectives, including growing assets size in the life insurance and the asset management businesses and scaling up of the lending book size in the NBFC business.

Birla further said the group's financial services business has been steadily expanding its market share across almost all verticals.

"On Sunday, it is managing assets of USD 17.5 billion and ranks among the top five fund managers in India, excluding banks and LIC, and is also the 5th largest private player in the life insurance sector.

"In the asset management sector, it is the 4th largest player in the country. Having turned profitable, the life insurance business has begun paying dividend," he said.

Talking about the entire group, Birla said that its 133,000-strong workforce across 36 countries helped it post a solid performance in FY 2011-12, despite a choppy global economy.

"Our consolidated revenues were a little over USD 40 billion, reflecting a 14 percent growth.

"We have through determined and deliberate effort come to be in this position of being the 'Last Man Standing', almost across each of our businesses. And when we do face a downturn on Sunday, from our position of strength, the message I want to convey is that, the last man standing has the best chance at being the first man forward.

"The first man forward to consolidate market positions, to show superior performance in each industry and get a few steps ahead of competition," Birla said.


Latest News from Business News Desk