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

9th August, 2013

  • Revenue grew by 8 per cent from Rs. 5,745 crore
  • EBITDA surged 28 per cent Rs. 1,174 crore
  • Net profit is up by 24 per cent Rs. 331 crore

Rs. crore
Consolidated results Quarter 1
  2012-13 2013-14  
Revenue
5,323 5,745 8%
EBITDA
915 1,174 28%
Net profit
267 331 24%
Note: The financial results are not strictly 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.

Amidst the challenging macro-economic scenario, Aditya Birla Nuvo Limited (ABNL) has posted strong earnings growth. The company is competitively well positioned in most of its businesses.

Business-wise review

Aditya Birla Financial Services
Aditya Birla Financial Services (ABFS) is a large player in the non-banking financial services space. With funds under management of Rs.110,944 crore, ABFS ranks among the top 5 fund managers in India, excluding LIC. To expand its bouquet of financial services and products, the company has applied for banking license under the RBI guidelines. During the quarter, ABFS posted a revenue of Rs. 1,366 crore. Its earnings before tax grew by 12 per cent to Rs.229 crore. It is generating a return on average capital employed (ROACE) of 30 per cent per annum.

  • Assets under Management (AUM) of Birla Sun Life Insurance (BSLI) grew by 6 per cent to Rs.22,916 crore. Premium growth remained under pressure as experienced by the industry as well. BSLI is profitable and returning surplus funds to the shareholders.
  • Birla Sun Life Asset Management ranks as the 4th largest asset management company in India, with a market share of 9.4 per cent. Its total AUM is up by 21 per cent to Rs. 86,849 crore.
  • The lending book of Aditya Birla Finance doubled year on year to reach Rs.8,400 crore as on 30 June 2013. A share capital of Rs.125 crore was infused during the quarter to support its growth, taking its net worth to Rs. 1,242 crore.

Fashion & Lifestyle

  • Fashion and Lifestyle business recorded revenue of Rs. 1,294 crore and EBITDA of Rs.71 crore.
  • It expanded its retail presence to 1,518 exclusive brand outlets/stores, spanning nationwide across 3.8 million square feet.  It is also serving customers through more than 4,750 multi brand outlets.
  • Madura posted 25 per cent revenue growth, led by stores expansion and 14 per cent like-to-like stores sales growth. It is generating strong free cash flows, driven by improved earnings and working capital turns.
  • Pantaloons is investing in strengthening its retail presence, brand positioning and merchandise. It launched 2 new stores during the quarter.
  • To strengthen its domestic market leadership, Jaya Shree has expanded its linen yarn capacity from 2,300 tonnes per annum to 3,400 tonnes per annum. Linen fabric capacity expansion is targeted by the end of calendar year 2013.

Telecom

  • Idea Cellular is consistently outperforming the industry. Its Pan India revenue market share surged year on year from 15 per cent to 15.7 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. 6,534 crore and EBITDA rose by 47 per cent to Rs. 2,121 crore.
  • Idea is generating healthy cash profits and is strengthening its balance sheet quarter after quarter.

IT-ITeS

  • The revenue of Aditya Birla Minacs increased year on year by 10 per cent Rs. 658 crore. The Operating EBITDA grew by 8 per cent to Rs. 62 crore.
  • The business is posting steady cash profit to fund its capex and working capital requirements.

Manufacturing

  • Revenue of Agri, Rayon and Insulators businesses augmented year on year by 23 per cent to Rs. 787 crore.
  • EBITDA de-grew from Rs. 92 crore to Rs. 85 crore due to breakdown in the urea plant.
  • The new VFY capacity, which is being ramped up currently, will help in enhancing the product quality and range, especially in superfine segment.

Balance sheet
Standalone net debt to annualised EBITDA improved to 2.1 and net debt to equity improved to 0.38 compared to 3.3 and 0.53 respectively in the previous year.

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 50per 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 and strategy of the company, its future outlook and growth prospects, future developments in its businesses, its competitive and regulatory environment and management's current views and 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.