For the quarter ended 30th September 2012, Aditya Birla Nuvo Limited (ABNL) has posted a year-on-year growth of 12 per cent in revenue at Rs.5,992 crore. Its EBITDA crossed Rs.1,000 crore mark and net profit crossed Rs.300 crore mark - growing year-on-year by 30 per cent and 42 per cent respectively.
Commenting on the results, Dr. Rakesh Jain, Managing Director, said, "The challenging economic environment continues to affect growth in some of the sectors where ABNL operates. Despite this, the company has posted a strong growth in earnings."
Mr. Sushil Agarwal, Whole Time Director and CFO, said, "While some of the businesses are witnessing earnings pressure, most of the businesses are contributing to the profitable growth and are competitively well positioned."
Business-wise Review (year-on-year):
Aditya Birla Financial Services (ABFS):
The funds under management of ABFS crossed the Rs.100,000 crore mark - a rise of 14 per cent. ABFS attained revenue of Rs.1,489 crore. It has posted a strong growth in the profitability and the assets size across its businesses. Its earnings before tax at Rs.193 crore soared by 39 per cent.
Birla Sun Life Insurance ranked 5th among private players with a market share of 7.7 per cent in terms of year to date new business premium. Its Assets under Management (AUM) grew by 18 per cent to Rs.22,774 crore. Its 13th month premium persistency ratio is at 81 per cent as on 30th September 2012.
Birla Sun Life Asset Management posted 14 per cent growth in its Average AUM (AAUM) - the highest among the top five players. Its AAUM market share rose from 9 per cent to 9.8 per cent. It continues to be No.1 fixed income fund manager and overall the 4th largest player in India. ABFS has acquired an additional 1 per cent stake in Birla Sun Life Asset Management from Sun Life raising its holding to 51 per cent effective from 10th October 2012.
Aditya Birla Finance's lending book size more than doubled to reach Rs.5,150 crore. On quarter on quarter basis too, it has attained a strong 21 per cent growth in its book size. Share capital of Rs.100 crore was infused during the quarter. The business will require additional capital for future growth.
Aditya Birla Money's market share is up from 1 per cent to 1.5 per cent in retail cash equity broking segment, and from 0.67 per cent to 1 per cent in retail F&O segment, and from 0.35 per cent to 0.47 per cent in commodity broking segment.
Reflecting the strength of its brand and the quality of its services, Idea's revenue market share expanded from 13.9 per cent to 14.9 per cent.
As of 31st August 2012, Idea had 94.1 per cent of its reported subscribers as VLR (active) subscribers - the highest in the industry. Idea's total subscribers as on 30th September 2012 stood at over 115 million.
Led by a strong 18 per cent growth in minutes of use, Idea's revenue rose by 15 per cent to Rs.5,307 crore and EBITDA by 20 per cent to Rs.1,434 crore.
Net profit more than doubled from Rs.106 crore to Rs.240 crore.
Its strong balance sheet and free cash flow generation continues to support Idea's growth plans.
Fashion & Lifestyle:
Driven by continuous scaling up of exclusive brand outlets (EBOs) and supported by like-to-like stores sales growth, revenue from the retail channel grew by 21 per cent. Retail channel stands expanded at 1,197 EBOs spanning across 1.7 million square feet.
Total revenue of Madura Fashion & Lifestyle grew by 9 per cent to Rs.647 crore.
EBITDA rose by 13 per cent to Rs.65 crore driven by sales growth and improved gross margin.
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.
Post-approval by the stock exchanges, the demerger scheme has been filed with the Honourable Bombay High Court. In its hearing, the Honourable High Court has directed Pantaloon Retail India Limited (PRIL) to hold its shareholders' meeting on 6th December 2012.
An application has also been filed with the Competition Commission of India for its approval.
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 Ltd (the resulting company), a subsidiary of ABNL.
Post-demerger, the holding of ABNL, through its subsidiary, in the resulting company, will be 50.09 per cent.
On effectiveness of the Scheme and receipt of necessary approvals, the equity shares of the resulting company will be listed on the National Stock Exchange of India and The Stock Exchange, Bombay.
Supported by the conversion of order book, the revenue of Aditya Birla Minacs grew by 31 per cent to Rs.628 crore and operating EBITDA surged by 51 per cent to Rs.61 crore. Improved gross margin and favourable forex movement also contributed to the growth in profitability.
Net profit more than doubled from Rs.12 crore to Rs.31 crore.
Revenue rose by 33 per cent to Rs.1,947 crore while EBITDA grew by 4 per cent to Rs.195 crore.
Agri: Higher urea sales volume and growth in revenue from trading of imported fertilisers added to the top-line as well as the bottom-line.
Rayon: Improved VFY and ECU realisation and higher VFY sales volume augmented profitability.
VFY capacity expansion using spool technology from ENKA, Germany is expected to be completed in the fourth quarter of the current financial year.
Textiles: Volume growth and better realisation in the linen segment contributed.
Capacity expansion of linen yarn from 2,300 TPA to 3,400 TPA and linen fabric from 5.6 million meters to 8.3 million meters is planned at a capex of ` 100 Crore.
In the Carbon Black and Insulators businesses, cheaper imports continued to constrain 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 136,000 employees belonging to 42 nationalities and derives more than 53 per cent of its revenue from 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. 1 crore. The financial results are consolidated financials unless otherwise specified.