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Aditya Birla Nuvo reports results for the quarter ended 30 September 2013

13th November, 2013

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Click here to view the quarterly investor presentation

  • Revenue grew from Rs. 6,435 crore to Rs.6,493 crore
  • EBITDA rose by 16 per cent to Rs.1,203 crore
  • Net profit grew from Rs.284 crore to Rs.290 crore

Rs. crore
Quarter 2 Consolidated results Half year
  2012-13
(Previous Year)
2013-14
(Current Year)
  2012-13
(Previous Year)
2013-14
(Current Year)
 
1% 6,435 6,493
Revenue
11,757 12,237 4%
16% 1,039 1,203
EBITDA
1,955 2,377 22%
2% 284 275
Net profit
551 621 13%
Note: The financial results are not comparable with the previous year on account of slump sale of the Carbon Black business with effect from 1st April 2013 and consolidation of Pantaloons business with effect from 1st July 2012.

Given the testing macro-economic scenario, the company has posted strong earnings and is competitively well positioned in most of its businesses.

Quarterly business-wise review

Aditya Birla Financial Services
Aditya Birla Financial Services (ABFS) is one of the largest players in the non-banking financial services space. With funds under management of Rs.107,959 crore, ABFS ranks among the top 5 fund managers in India, excluding LIC. It posted a revenue of Rs.1,526 crore and earnings before tax of Rs.159 crore during the quarter. It is generating ROACE of 28 per cent per annum.

  • Birla Sun Life Insurance attained 13 per cent growth in new business premium. During the first half year, it has returned a surplus fund of about Rs.400 crore to the shareholders.
  • Birla Sun Life Asset Management is the 4th largest asset management company in India, with a market share of 9.6 per cent. Its average AUM is up by 9 per cent to Rs.84,400 crore.
  • The lending book of Aditya Birla Finance expanded by 61 per cent to Rs.8,300 crore as on 30th September 2013. To support its growth, a share capital of Rs.100 crore was infused, taking its net worth to Rs.1,381 crore. The business is growing its loan book cautiously keeping the risk under control.

Fashion & Lifestyle
Revenue of Fashion & Lifestyle business rose by 17 per cent to Rs.1,613 crore and EBITDA by 14 per cent to Rs.155 crore. It expanded its retail presence to 1,587 exclusive brand outlets / stores, spanning nationwide across 3.9 million square feet. It is generating an operating ROACE of 22 per cent per annum.

  • Madura's revenue grew by 30 per cent and EBITDA surged by 82 per cent, led by growth in wholesale channel, retail stores expansion and 7 per cent like-to-like retail stores sales growth. Madura added 89 stores during the quarter. It generated free cash flows of about Rs.150 crore during the first half year.
  • Pantaloons registered 9.5 per cent revenue growth. The business is in an investment phase and is strengthening its retail presence, brand positioning and merchandise to enhance sell through. It has launched three stores during the quarter.
  • To strengthen its market leadership, Jaya Shree has expanded linen yarn capacity from 2,300 to 3,400 tonnes per annum. It is targeting linen fabric capacity expansion from 7.3 to 10.1 million meters per annum by the end of calendar year 2013.

Telecom

  • Idea is consistently outperforming the industry. Its revenue market share surged from 14.9 per cent to 16.2 per cent.
  • It posted a strong growth in earnings and ROACE led by robust voice and data usage, improved voice realisation, scale benefit and cost efficiency.
  • Its revenue soared by 19 per cent to Rs.6,315 crore and EBITDA rose by 42 per cent to Rs.2,034 crore.
  • Idea is generating healthy cash profits and is strengthening its balance sheet quarter after quarter.

IT-ITeS

  • Revenue increased by 23 per cent to Rs.774 crore and EBITDA grew by 7 per cent to Rs.69 crore.
  • The business is posting steady cash profit to fund its capex and working capital requirements.

Manufacturing (Agri, Rayon and Insulators)

  • Revenue de-grew by 15 per cent to Rs.994 crore and EBITDA at Rs.119 crore is lower by 9 per cent mainly on account of discontinuance of trading in imported P&K fertilisers, which has also led to rationalisation of capital employed through reduction in the outstanding subsidy and receivables.
  • The new VFY capacity is expected to reach full capacity utilisation by the end of the current financial year. It will help in enhancing the product quality and range, especially in the superfine segment.

Balance sheet
The standalone net debt to annualised EBITDA improved to 2.1 and net debt to equity improved to 0.41 compared to 3.3 and 0.53 respectively in 2012-13. In November 2013, the promoters infused Rs.671 crore on conversion of remaining warrants.

The strengthening of the company's balance sheet will support its growth plans, going forward.

About Aditya Birla Nuvo Limited
Aditya Birla Nuvo is a US$4.75 billion conglomerate. Over the years, it has successfully ventured into the service sectors viz., Financial Services (Life Insurance, Asset Management, NBFC, Private Equity, Broking, Wealth Management and general insurance advisory), Fashion & Lifestyle, Telecom, and IT-ITeS. Its razor sharp focus on manufacturing businesses has made it a leading player in the Agri, Rayon and Insulators sectors.

Aditya Birla Nuvo is part of the Aditya Birla Group, a US$42 billion Indian multinational. The Group operates in 36 countries across the globe, is anchored by an extraordinary force of over 136,000 employees belonging to 42 nationalities and derives more than 50 per cent of its revenue from its overseas operations.

Disclaimer : Certain statements in this "Press Release" may not be based on historical information or facts and may be "forward looking statements" within the meaning of applicable securities laws and regulations, including, but not limited to, those relating to general business plans & strategy of the Company, its future outlook & growth prospects, future developments in its businesses, its competitive & regulatory environment and management's current views & assumptions which may not remain constant due to risks and uncertainties. Actual results could differ materially from those expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any statement, on the basis of any subsequent development, information or events, or otherwise. This "Press Release" does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of the Company's shares. The financial figures in this "Press Release" have been rounded off to the nearest Rs one Crore. The financial results are consolidated financials unless otherwise specified.