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Aditya Birla Nuvo reports results for Q4

01 May '08
3 min read

During the fourth quarter, consolidated revenues jumped by 43 per cent to Rs. 3804.4 crore from Rs. 2652.2 crore achieving growth across the businesses despite economic slowdown.

Pre-launch expenses of stores in apparel retail subsidiaries and impact of weak dollar on contract exports business lowered the profitability of the garments business.

Promoters to fund growth of the company through preferential allotment:
The shareholders of the company have approved allotment of 2.05 crore warrants on preferential basis to the promoters at the EOGM held in February 2008. Till March 2008, a sum of Rs. 751.1 crore has been received as 10 per cent upfront payment and on conversion of 17 lakh warrants into equity shares.

Dividend
The board of directors has recommended a dividend of 57.5 per cent for the current year as against 55 per cent last year. The company will also pay a dividend tax (including surcharge and education cess) of 17 per cent. The dividend outgo will therefore be Rs. 63.9 crore.

Growth initiatives:
• Financial services businesses will continue to improve market positioning through scaling up of distribution reach, strengthening product portfolio through innovative launches, improving brand loyalty through transparent returns and deriving synergies through cross selling. It is also planned to explore and enter growth avenues in new business segments in the financial services space.
• Madura Garments will aggressively pursue apparel retailing with the launch of large format family stores for Peter England and men's exclusive lifestyle stores for fashion and international brands through two separate subsidiaries besides creating its own exclusive brand outlets.

Most of our businesses are progressing well on the designed path to leverage growth opportunities. Aditya Birla Nuvo is optimistic about meeting the challenges of strategic growth initiatives and enhancing its revenues and earnings.

The investments pumped, more specifically into the life insurance, BPO and garments businesses, which have created a stretch on profitability in the short term, will go a long way for value creation for shareholders.

Aditya Birla Nuvo

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