Aditya Birla Nuvo Garments biz revenues rise by 36%

30 Jan '08

4 min read

Insulators and Fertilisers business also contributed to the revenues growth. After the breakdown in the preceding quarter, the fertiliser plant is now stabilised and is running on full capacity.

Growth in standalone net profit by 59% while investment phase of growth businesses had gestating impact on consolidated profitability

The standalone net profit during the quarter was higher by 59% at Rs. 84 Crores as against Rs 52.7 Crores attained in the corresponding quarter of last year. Insulators and Carbon Black businesses and income tax refunds contributed significantly to the earnings.

Despite higher standalone profitability, consolidated net profit at Rs. 30.2 Crores is lower by 45% against Rs. 55.3 Crores attained in the corresponding quarter of the preceding year.

The consolidated net profit for nine months ended 31st December 2007 is Rs. 172.6 Crores against Rs. 198.7 Crores in corresponding period of previous year despite aggressive growth in Telecom, Life Insurance, Asset Management and BPO businesses.

• In the Life insurance business, net loss increased during the quarter to Rs. 125.8 Crores from Rs. 30.8 Crores. This was largely due to rising share of new business premium and higher spends on expanding its distribution reach to regain the market share.

• In the BPO business, net loss was higher at Rs. 38.2 Crores, constrained by the weakening of US Dollar, besides ramping up and training costs for new sites.

• Pre-launch expenses of stores in apparel retail subsidiaries affected the profitability of the Garments business. However, the Telecom business, which is now in the profit phase, has reported a substantial jump of 108% in net profit at Rs. 236.7 Crores vis-à-vis Rs. 113.8 Crores earned in the corresponding quarter of the last year.

In most of our businesses, we are moving ahead with our investment plans to leverage growth opportunities. Aditya Birla Nuvo is very optimistic about meeting the challenges of strategic growth initiatives and enhancing its revenues and earnings.

The investments pumped into the Life Insurance, BPO and Garments businesses, which have created a stretch on profitability in the short term, will go long way for value creation for the shareholders.

Aditya Birla Nuvo Ltd

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