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| Garments division reports revenue growth at Aditya Birla Nuvo | | October 31, 2009 (India) |  |
 Aditya Birla Nuvo continues to pursue distinct strategic objectives across its businesses.
Quarter 2 – Year on Year performance review
- EBITDA grew by 78% driven by improved profitability in the BPO,
Rayon and Carbon Black businesses coupled with reduced losses in the Life Insurance and Garments businesses.
- As a result, net profit improved considerably even after absorbing higher depreciation consequent to expansion in the Telecom business.
To strengthen balance sheet, promoters have further infused Rs. 325 Crores on conversion of warrants in addition to Rs. 250 Crores received earlier as 25% application money.
All the businesses are progressing on the designed path of achieving profitable growth.
Garments: Revenues grew year on year by 5% to Rs. 341.6 Crores. Business has turned EBITDA positive during the quarter.It
posted EBITDA at Rs. 8 Crores compared to loss of Rs. 15.1 Crores
incurred in corresponding quarter last year and loss of Rs. 24.9 Crores in the previous quarter. Continuous focus on costs rationalisation and working capital management supported the turnaround.
Rayon: Indian Rayon posted considerable growth in earnings
driven by higher VFY realisation and lower input costs. This is despite lower profitability in the chemical segment due to lower caustic soda realisation.
Commenting on the results Dr. Rakesh Jain, MD, Aditya Birla Nuvo said, “Aditya Birla Nuvo is well positioned to emerge stronger with the continuous pursuit of strategic initiatives and is looking beyond immediate challenges”.
Mr. Sushil Agarwal, CFO, Aditya Birla Nuvo emphasised that,
“Aditya Birla Nuvo is moving closer to achieving ‘path to profitability’ in the ‘Growth’ businesses. The investments made, specifically in the Financial Services, BPO and Garments businesses, are geared towards building businesses with long term goals while creating value for the shareholders”. | | | | Aditya Birla Nuvo Limited | |
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