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Aditya Birla Nuvo reports results for the quarter ended 30 June 2012

6th August, 2012

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Click here to view the quarterly investor presentation

  • Revenue grew by 11 per cent from Rs. 5,323 crore
  • EBITDA rose 14 per cent Rs. 915 crore
  • Net profit is up by 5 per cent Rs. 267 crore

Rs. crore
Consolidated results Quarter 1
  2012-13 2011-12  
Revenue
5,323 4,777 11%
EBITDA
915 802 14%
Net profit
267 253 5%

For the quarter ended 30 June 2012, Aditya Birla Nuvo Limited (ABNL) has posted a year on year growth of 11 per cent in revenue at Rs.5,323 crore. EBITDA rose by 14 per cent to Rs. 915 crore and net profit is up by 5 per cent at Rs. 267 crore.

Management Comments
Commenting on the results, Dr. Rakesh Jain, Managing Director said, "While industry growth has moderated in few of the sectors where ABNL operates, the Company continues to outperform in most of its businesses."

Mr. Sushil Agarwal, Whole Time Director and CFO emphasized that, "Despite the planned maintenance shutdown in the agri-business and the impact of dumping from China in the Carbon Black and Insulators businesses, ABNL has achieved sound growth in the consolidated earnings."

Business-wise Review:

Aditya Birla Financial Services:
With funds under management in excess of Rs.94,600 crore, Aditya Birla Financial Services (ABFS) continued to strengthen its market positioning across key parameters. ABFS posted consolidated revenue at Rs.1,364 crore. Its earnings before tax at Rs.204 crore surged quarter on quarter by 38 per cent and year on year by 15 per cent.

Birla Sun Life Insurance improved its private sector ranking in the group business to the 2nd position while maintaining individual business ranking at 5th. Its new business market share, among private sector players, rose quarter on quarter from 6.6 per cent to 8.8 per cent.

Birla Sun Life Asset Management became the largest fixed income manager in India and cemented its overall 4th position. Its AUM market share grew quarter on quarter from 9.2 per cent to 9.7 per cent.

Aditya Birla Money's market share rose year on year from 1per cent to 1.5 per cent in the retail cash equity broking segment and from 0.28 per cent to 0.44 per cent in the commodity broking segment.

Aditya Birla Finance's lending book size more than doubled year on year to about Rs.4,250 crore. On a quarter on quarter basis too, it has attained a strong 25 per cent growth in its book size.

Telecom:

  • Reflecting the strength of its brand and the quality of its services, Idea Cellular leads the industry as the biggest revenue market share gainer since the past 4 years.
  • Idea has a strong customer base of more than 117 million subscribers.
  • Its revenue rose year on year by 22 per cent to Rs.5,501 crore and EBITDA by 17 per cent to Rs. 1,446 crore.
  • Idea's net profit surged by 32 per cent from Rs.177crore to Rs. 234 crore.
  • A strong balance sheet and free cash flow generation continued to support Idea's growth plans.

Fashion & Lifestyle:

  • Revenue of Madura Fashion & Lifestyle grew by 8 per cent to Rs.524 crore. Expansion of stores led to 18 per cent sales growth in the retail channel which stands expanded to 1,167 EBOs across 1.7 million square feet.
  • EBITDA at Rs.22 crore was flat year on year. Moderation in sales growth, during the seasonally subdued first quarter, led to lower absorption of rentals and other fixed costs.

ABNL, through its subsidiary Peter England Fashions & Retail Ltd., has invested Rs.800 crore through Optionally Fully Convertible Debentures in Pantaloon Retail India Ltd. (PRIL) during June 2012. The due diligence is in progress and the demerger scheme will be filed by ABNL and PRIL shortly.

IT-ITeS:

  • The revenue of Aditya Birla Minacs grew year on year by 27 per cent to Rs.599 crore and operating EBITDA surged by 50 per cent to Rs.57 crore. Higher revenue on account of ramp up and favourable forex movement contributed to the earnings growth. Net profit more than doubled from Rs.8 Crore to Rs.19 Crore.

Manufacturing:

  • The revenue is up year on year by 8 per cent at Rs.1,503 crore while EBITDA is lower by 8 per cent at Rs.190 crore. Textiles and Rayon businesses posted their highest ever quarterly earnings. Sales volume and profitability in the Carbon Black and Insulators businesses were affected year on year due to dumping from China. Maintenance shutdown in the Agri-business for 20 days, planned during the quarter, constrained urea sales volume and profitability.

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 Ltd.
Aditya Birla Nuvo is a USD 4.5 billion conglomerate. Over the years, it has made successful ventures into the sunrise 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 USD 40 billion Indian multinational. The Group operates in 36 countries across the globe, is anchored by an extraordinary force of over 133,000 employees belonging to 42 nationalities and derives more than 60% 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 one crore. The financial results are consolidated financials unless otherwise specified.