Home / Knowledge / News / Textiles / Textiles biz of Aditya Birla Nuvo posts satisfactory results
Textiles biz of Aditya Birla Nuvo posts satisfactory results
29
Apr '09
Aditya Birla Nuvo continued to pursue distinct strategic initiatives across its businesses to achieve growth.

• Adding new circles to achieve pan India presence and improving network quality to ensure growth in existing circles in the telecom business
• Expanding customer reach and augmenting portfolio in the financial services business
• Transformation from a wholesale “garment” company to a “high-end apparel retailing” company through expansion of retail space
• Site rationalisation to support business from cost effective sites in the BPO business
• Expanding capacities to tap sector growth in the manufacturing businesses

As a result, while the company grew in revenues, profitability was strained due to:
• The gestating impact of the aggressive growth initiatives bunched together
• The wide-spread slowdown which has affected a few of our businesses as well:
- Carbon black industry was impacted by the sharp volatility in crude oil prices and slowdown in demand from the auto / tyre sector. Peak crude oil prices built steadily over last 10 years crashed in less than a three months span
- Garments industry witnessed weak consumer demand and prolonged discounting
- BPO, IT and garments exports businesses faced forex losses resulting from weak order flow due to the unprecedented economic slowdown

The company has initiated aggressive cost control measures and tighter working capital management besides re-aligning its capital expenditure across the businesses to reduce the strain. As a result, consolidated losses in the fourth quarter are lower than that of third quarter.

The company's consolidated net sales during the fourth quarter rose by 11 per cent to Rs. 4,096.9 crore from Rs. 3,683.3 crore; the telecom and the life insurance businesses being the major growth drivers.

• Bucking the slowdown and intense competition, the telecom business registered a 48 per cent rise in revenues, during the quarter, from Rs. 1,972.4 crore to Rs. 2,924 crore. Idea operates in 16 service areas with over 43 million subscribers. Idea ranked fifth with 11 per cent all India market share as on 31 March 2009.

In line with its plan, Tamil Nadu circle (incl. Chennai) should be operational in the current quarter, while the remaining five circles will be operational by the end of the calendar year. Cash inflows from TMI and providence deals will act as cushion to finance capex plans and bidding for 3G. The debt-equity ratio (net of cash and cash equivalents of Rs. 5,131.6 crore) stood at 0.27 as on 31 March 2009.

• During the quarter, the life insurance business recorded a 19 per cent growth in new business premium income at Rs. 1,035.1 crore, supported by an expanded distribution reach and strengthened product portfolio. During April 2008-February 2009, Birla Sun Life Insurance achieved a 54 per cent growth in first year premium compared to 12 per cent growth attained by private players and ranked fifth with a market share of 8.5 per cent amongst private players up from 6.6 per cent achieved last year. It has launched 261 new branches during the year to reach a total of 600 branches. During the year, its direct sales force grew from about 115,000 agents to over 165,000 agents. The company has delivered better returns than market to its policyholders and therefore more than 85 per cent of its assets under management are in the top quartile of performance.
• During the year market share in the asset management business has grown to 9.5 per cent from 6.8 per cent. It also won coveted “Mutual Fund House of the Year” award by 'CNBC TV 18 – Crisil' for second year in a row.
• The BPO business revenues de-grew by 10 per cent, during the quarter, from Rs. 428.4 crore to Rs. 387.1 crore consequent to the global slowdown. The business has expanded about 600 seats in India to serve the needs of telecom sector. The growth in business from the telecom sector will continue this year too.


Must ReadView All

Pakistan’s FBR imposes 5% sales tax on cotton import

Textiles | On 21st Jul 2018

Pakistan’s FBR imposes 5% sales tax on cotton import

Pakistan’s Federal Board of Revenue recently withdrew sales tax...

Bangladesh drafts policy for Tk1,000 cr govt jute fund

Textiles | On 21st Jul 2018

Bangladesh drafts policy for Tk1,000 cr govt jute fund

Bangladesh will set up a Tk10,000-crore Jute Sector Development Fund...

Ahmad A. Al Sa’adi and Kwon Pyung-Oh display a comprehensive Memorandum of Understanding; Courtesy: Saudi Aramco

Textiles | On 21st Jul 2018

Saudi Aramco, KOTRA sign MoU for business cooperation

Saudi Aramco has signed an MoU with the Korea Trade-Investment...

Interviews View All

Top executives
Textile industry, India

The event should be organised every year

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search