Aditya Birla Nuvo reports results for quarter ended 31st December 2012

14th February, 2014

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  • Revenue grew by 10 per cent to Rs.6,305 crore
  • EBITDA rose by 29 per cent to Rs.1,090 crore
  • Net profit surged by 28 per cent to Rs.323 crore
Rs. crore
Quarter - 3 Consolidated results Nine months
  2012-13 2011-12 2012-13 2011-12  
10% 6,305 5,720 Revenue 17,619 15,846 11%
29% 1,090 842 EBITDA 3,012 2,419 25%
28% 323 252 Net profit 894 720 24%

For the quarter ended 31st December 2012, Aditya Birla Nuvo Limited (ABNL) has posted a year-on-year growth of 10 per cent in revenue at Rs.6,305 crore. Its EBITDA rose by 29 per cent to Rs.1,090 crore and net profit surged by 28 per cent to Rs.323 crore.

Management comments
Commenting on the results, Dr. Rakesh Jain, Managing Director, said, "Given the current economic environment, which is marked with moderation in GDP growth, high interest rates and inflation, Aditya Birla Nuvo has registered strong earnings."

Mr. Sushil Agarwal, Whole Time Director and CFO, said, "Most of the businesses of Aditya Birla Nuvo are competitively well positioned. The company continues to scale up and has plans to expand the businesses with long-term growth potential."

Business-wise review (year-on-year)

Aditya Birla Financial Services (ABFS)

ABFS posted strong growth in its profitability and assets size during the quarter. The funds under management of ABFS expanded by 26 per cent to Rs.106,950 crore. ABFS attained revenue of Rs.1,500 crore. Contributed by all the businesses, earnings before tax soared by 57 per cent to Rs.215 crore.

  • Birla Sun Life Insurance ranked 5th among the private life insurers with a market share of 8 per cent in terms of year to date new business premium. Its Assets under Management (AUM) grew by 22 per cent to Rs.23,351 crore.
  • Birla Sun Life Asset Management achieved its highest-ever average AUM (AAUM) at Rs.82,420 crore. It posted highest growth rate in the domestic AAUM among the top 5 players and improved its market share from 8.9 per cent to 9.8 per cent. It continues to be the number 1 fixed income fund manager in India.
  • Aditya Birla Finance's lending book size more than doubled to reach Rs.6,500 crore. On quarter on quarter basis too, it has attained a strong 26 per cent growth in its book size.
  • As of 31st December 2012, out of its total 114 million subscribers, Idea reported 98.2 per cent as VLR (active) subscribers, which is the highest in the industry.
  • Led by a strong 16 per cent growth in total minutes, despite regulations impacting subscribers acquisition, Idea's revenue and EBITDA grew by 11 per cent to Rs.5,572 crore and Rs.1,501 crore respectively.
  • Its strong balance sheet and free cash flow generation continues to support Idea's growth plans.
Fashion & Lifestyle
  • Driven by scaling up of exclusive brand outlets (EBOs) and 9 per cent like-to-like stores sales growth, revenue from the retail channel surged by 27 per cent. Retail channel stands expanded to a total of 1,233 EBOs spanning 1.8 million square feet.
  • Madura has exited its distribution tie-up with Esprit and closed all Esprit stores.
  • Excluding Esprit, revenue of Madura Fashion & Lifestyle grew by 19 per cent to Rs.681 crore, EBITDA rose by 32 per cent to Rs.76 crore and EBITDA margin of branded apparels segment improved from 11.6 per cent to 12.1 per cent.
  • Madura is generating sound ROACE led by profitable growth and working capital management.

Pantaloons Transaction Update

  • The proposed acquisition of a controlling stake in Pantaloons Fashion Format of Future Group will give ABNL's Fashion & Lifestyle business an entry into the womenswear and kidswear segments.
  • Pantaloon Retail India Limited (PRIL), through a court scheme of arrangement, will transfer all undertakings, business activities and operations pertaining to the 'Pantaloons Fashion Format' to Peter England Fashions & Retail Limited (the resulting company), a subsidiary of ABNL.
  • The appointed date of the transfer is 1st July 2012.
  • As part of the Scheme of Arrangement, ABNL and/or its affiliates intend making a voluntary open offer to the other shareholders of the resulting company.
  • On the effectiveness of the scheme and receipt of requisite approvals, equity shares of the resulting company will be listed on the National Stock Exchange of India and The Bombay Stock Exchange.
  • Supported by the conversion of its order book, the revenue of Aditya Birla Minacs grew by 12 per cent to Rs.624 crore. Operating EBITDA at Rs.69 crore is up by 29 per cent. Favourable forex movement also contributed to the growth in profitability.
  • Revenue rose by 17 per cent to Rs.2,098 crore and EBITDA grew from Rs.198 crore to Rs.204 crore. Revenue growth was largely driven by higher trading of imported fertilisers. While earnings in the Carbon Black business remained under pressure due to cheaper imports and lower off-take from tyre manufacturers, the Rayon and the Insulators businesses contributed to growth in the profitability.
  • The Capex plans in the manufacturing businesses includes:
    • Agri: The Board of Directors of the company has approved a proposal for urea brownfield expansion by 3,850 tonnes per day (about 1.3 million tonnes per annum) at the existing Indo-Gulf fertilisers complex in Jagdishpur (UP), at a capex of around Rs.4,000 crore, under the New Investment Policy and subject to the requisite government approvals.
    • Rayon: Commissioning of the new VFY capacity using spool technology from ENKA, Germany is targeted by the end of the current financial year.
    • Textiles: Capacity expansion of linen yarn from 2,300 tonnes per annum to 3,400 tonnes per annum and of linen fabric from 7.3 million meters to 10.1 million meters is targeted to be completed in the next financial year at a capex of Rs.100 crore.

Going forward, ABNL's thrust is on capturing growth opportunities across its businesses to achieve the next higher level of growth.

About Aditya Birla Nuvo Limited
Aditya Birla Nuvo is a US$4.5 billion conglomerate. Over the years, it has made successful ventures into the service sectors viz., Financial Services (Life Insurance, Asset Management, NBFC, Private Equity, Broking, Wealth Management and general insurance advisory), Telecom, Fashion & Lifestyle and IT-ITeS. Its razor sharp focus on manufacturing businesses has made it a leading player in Agri-business, Carbon Black, Insulators, Rayon and Textiles sectors.

Aditya Birla Nuvo is part of the Aditya Birla Group, a US$40 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 53 per cent of its revenue from overseas operations.

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