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Aditya Birla Nuvo reports results for the year ended 31 March 2012

15th May, 2013

Click here to view the results

Click here to view the quarterly investor presentation

  • Revenue rose by 20 per cent to cross Rs. 21,000 crore mark
  • EBITDA up by 21 per cent to Rs. 3,259 crore
  • Net profit up by 8 per cent to Rs. 890 crore

Rs. crore
Quarter 4 Consolidated results Full year
  2011-12 2010-11   2011-12 2010-11  
15% 5,994 5,215
Revenue
21,840 18,188 20%
11% 862 778
EBITDA
3,259 2,685 21%
  326 382
Earnings before Tax (EBT)
1,330 1,195  
  (104) - Exceptional gain / (Loss)* (104) (104)  
  222 382 EBT after Exceptional Gain / (Loss) 1,226 1,091  
  170 294 Net profit after minority interest 890 822  

*A provision of Rs.104 crore has been made during 2011-12 towards entry tax liability (largely related to previous years, earlier recognised as contingent liability) w.r.t. Renukoot (U.P.) plant of the Carbon Black business; the matter is sub-judice. In 2010-11, Aditya Birla Money and Aditya Birla Money Mart, subsidiaries of ABNL, had borne a one-time exception loss of Rs.104 crore.


During 2011-12, Aditya Birla Nuvo Limited (ABNL) has posted a strong 20 per cent growth in revenue at  Rs.21,840 crore. EBITDA at Rs.3,259 crore reflects a 21 per cent growth. Net profit at Rs.890 crore is up by 8 per cent.

During the fourth quarter, revenue rose by 15 per cent and EBITDA grew by 11 per cent. Earnings before tax (before exceptional items) at Rs.326 crore de-grew by 15 per cent.

The rise in depreciation and interest costs primarily relating to 3G investments in the telecom business has constrained net profit.

Commenting on the results, Dr. Rakesh Jain, Managing Director, ABNL, said, "Aditya Birla Nuvo, as a conglomerate, is progressing well on the growth path to tap sector opportunities. ABNL has made this evident by outperforming the industry across most of its businesses. ABNL is committed to keep up this trend."

Mr. Sushil Agarwal, Whole Time Director and CFO, ABNL, remarked, "ABNL has posted strong results considering the testing macro-economic scenario and earnings pressure in some of its businesses. ABNL will continue to pursue its growth journey. The promoter infusion will further strengthen the company's balance sheet to support the future growth."

Business-wise review

Aditya Birla Financial Services (ABFS)
With funds under management worth US$17.5 billion, Aditya Birla Financial Services (ABFS) ranks among the top five private fund managers (excluding banks) in India. Anchored by about 17,000 employees, and trusted by approximately 5.5 million customers, ABFS has a nationwide presence through more than 1,775 points of presence and around 200,000 channel partners.

During 2011-12, ABFS strengthened its foothold amidst growth challenges faced by the sector. It gained market share in the life insurance, asset management, NBFC and broking businesses. Aditya Birla Private Equity launched second fund, taking the total funds under its management to Rs.1,179 crore.

ABFS posted a consolidated revenue of Rs.6,550 crore while its EBT surged by 27 per cent to Rs.600 crore. The business-wise highlights follow:

  • Birla Sun Life Insurance (BSLI)

    • BSLI improved its ranking to fifth in the private sector. Its market share rose from 7 per cent to 7.8 per cent.
      • Its gross premium income grew by 4 per cent to Rs. 5,885 crore. While the first year premium de-grew by 7 per cent to Rs.1,926 crore, renewal premium extended by 10 per cent to Rs. 3,959 crore.
      • Its conservation ratio at 76 per cent and 13th month premium persistency at 82 per cent continue to be one of the best in the industry. 
      • Earnings before tax surged by 51 per cent to Rs.461 crore led by expanded in-force book.
    • Having attained a strong growth in profitability, BSLI has declared its maiden dividend of Rs.98.5 crore @ 5 per cent of paid up capital. ABNL received Rs.73 crore for its 74 per cent shareholding.
  • Birla Sun Life Asset Management (BSAMC)
    •  BSAMC improved its ranking to fourth position and enhanced its market share to 9.2 per cent. 
    • Its total average AUM stood at Rs.64,460 crore.
  • Aditya Birla Finance (ABFL)
    • The book size of ABFL soared year-on-year by 84 per cent to reach Rs.3,425 crore.
    • This was supported by growth in the existing book as well as commencement of infra financing and mortgage financing.
    • A capital of Rs.75 crore was infused to support growth, taking ABFL's net worth to Rs.628 crore.
Telecom
  • With a strong customer base of 113 million subscribers and 1.4 billion minutes per day, Idea is among the top 10 global cellular operators.
  • Idea continued to expand its revenue market share, which stands enhanced to 14.4 per cent (Q3FY12) up from 13.6 per cent (Q4FY11).
  • While Idea ranks third on a pan-India basis, it ranks first with about 24.4 per cent revenue share in eight service areas where it has 900 or 2100 MHz spectrum.
  • Reflecting the strength of its brand and quality of its services, Idea continues to lead the industry as an MNP provider and enjoys the highest active subscribers' ratio in the industry.
  • Its revenue rose by 26 per cent to Rs.19,489 crore and EBITDA by 32 per cent to Rs.5,135 crore.
  • Net profit is lower at Rs.723 crore vis-a-vis Rs.899 crore due to higher depreciation/amortisation and interest costs relating to 3G investments coupled with higher deferred tax. 

Fashion and Lifestyle

  • Madura Fashion & Lifestyle crossed the Rs.2,200 crore revenue mark - almost doubling its revenue size in just two years.
  • Its key brands viz., Louis Philippe, Van Heusen, Allen Solly and Peter England continued to outperform the industry.
  • Led by strong sales growth and improved product mix, EBITDA shot up by 46 per cent to Rs.198 crore.
  • Its retail channel achieved double digit like to like stores sales growth. The retail channel stands expanded to 1,129 EBOs across 1.6 million square feet.
ABNL aims to fortify its leadership position in the fashion and lifestyle business by entering into the value segment including kidswear and womenswear. In this direction, ABNL's board has approved the proposed acquisition of a controlling stake in Future Group's 'Pantaloons Format Business' post its demerger from Pantaloon Retail (India) Limited (PRIL), subject to requisite approvals. First PRIL will issue Optionally Fully Convertible Debentures worth Rs. 800 crore to ABNL or its subsidiary. Then PRIL will demerge the Pantaloon Format (resulting entity) through court scheme of arrangement. ABNL's stake in the resulting entity will be approximately 45 per cent triggering open offer. ABNL's holding in the resulting entity post open offer shall be a minimum of 50.01 per cent. The resulting entity will become a listed subsidiary of ABNL. The transaction is likely to be completed in the next 8 to 10 months.

IT-ITeS

  • Aditya Birla Minacs sold Total Contract Value of US$730 million and won 16 new clients.
  • Its revenue surged year-on-year by 23 per cent to Rs.2,082 crore and operating EBITDA grew by 16 per cent.
  • It posted a net profit of Rs.70 crore.
Manufacturing
  • Combined revenue soared by 33 per cent to Rs.6,244 crore. Agri business crossed Rs.2,000 crore revenue mark supported by commencement of trading in imported fertilisers. Textiles business crossed Rs.1,000 crore revenue mark.
  • EBITDA was maintained at Rs.752 crore. Higher trading of imported fertilisers in the agri-business has augmented profitability, including pricing gain due to favourable forex movement. Improved realisation in the Rayon and the textiles businesses also contributed. However, dumping from China and rise in production costs strained profitability in the Carbon Black and insulator businesses.
Equity infusion
  • To strengthen its balance sheet and to meet future growth capital requirements, ABNL has issued 16.5 million warrants to its promoters after getting approval from the shareholders.
  • Out of the total equity infusion of about Rs.1,500 crore, a sum of Rs.375 crore has already been received as 25 per cent application money.
Dividend
  • The Board of Directors has recommended an equity dividend of 60 per cent for 2011-12 entailing a total outgo of  Rs.68 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 sunrise sectors viz., financial services (life insurance, asset management, NBFC, private equity, broking, wealth management and general insurance advisory), telecom, fashion and 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$35 billion Indian multinational. The Group operates in 36 countries across the globe, is anchored by an extraordinary force of 133,000 employees belonging to 42 nationalities and derives more than 60 per cent of its revenue from its overseas operations.

Vision
To become a premium conglomerate with market leadership across businesses, delivering superior value to shareholders on a sustained basis.

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.