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ABNL turns positive at consolidated net profit level
12 May '10
2 min read
Aditya Birla Nuvo Ltd (ABNL), part of the Aditya Birla Group, India's first truly multinational group released financial result for the year ended 31 March 2010.
• Consolidated net sales crossed Rs. 15,000 crore mark (approx. USD 3.5 billion)
• Achieved highest ever consolidated EBITDA and cash profit
• Turned positive at consolidated net profit level
Aditya Birla Nuvo's earnings growth was driven by improved profitability in the manufacturing businesses coupled with reduced losses in the life insurance, IT- ITeS and garments businesses. Led by improved earnings and equity infusion by promoters, the balance sheet has been strengthened.
Garments: Revenues grew by 12% to Rs. 1,251 crore spurred by a 15% growth in sales from the retail channel. EBITDA stood at Rs. 7 crore compared to a loss of Rs. 154 crore in the previous year. Higher sales along with cost optimisation and rightsizing measures supported the turnaround.
Manufacturing businesses have collectively posted their highest ever EBITDA at Rs. 748 crore vis-à-vis Rs. 578 crore in the previous year. The operating margin at 20.1% and return on average capital employed at 27.1% has been encouraging. The carbon black, rayon and textiles businesses were the major contributors to the earnings growth.
The greenfield carbon black capacity expansion at Patalganga is targeted to commence production by the end of May 2010. This will increase the total carbon black manufacturing capacity to 3,15,000 metric tonnes per annum (MTPA). The company is planning to augment its capacity further by 85,000 MTPA each at Patalganga in second phase as well as in southern India.
To sum up, financial services business not only piloted the revenues growth but also led the year-on-year profit walk. The garments and IT- ITeS businesses moved closer towards profitability while the manufacturing businesses achieved highest ever earnings.
Management Comments
Commenting on the results, Dr. Rakesh Jain, MD, Aditya Birla Nuvo, said, “ABNL is uniquely positioned to incubate grow th businesses profitably and adding significant value to the customers through diversified services and products.”
Mr. Sushil Agarwal, CFO, Aditya Birla Nuvo, emphasised , “Our thrust on profitable growth across the businesses has led to a turnaround of about Rs. 600 crore at the bottom-line. We remain confident of creating value for all the stakeholders by capturing growth potential in all our businesses.”
Vision
To become a premium conglomerate with market leadership across businesses, delivering superior value to shareholders on a sustained basis.
• Consolidated net sales crossed Rs. 15,000 crore mark (approx. USD 3.5 billion)
• Achieved highest ever consolidated EBITDA and cash profit
• Turned positive at consolidated net profit level
Aditya Birla Nuvo's earnings growth was driven by improved profitability in the manufacturing businesses coupled with reduced losses in the life insurance, IT- ITeS and garments businesses. Led by improved earnings and equity infusion by promoters, the balance sheet has been strengthened.
Garments: Revenues grew by 12% to Rs. 1,251 crore spurred by a 15% growth in sales from the retail channel. EBITDA stood at Rs. 7 crore compared to a loss of Rs. 154 crore in the previous year. Higher sales along with cost optimisation and rightsizing measures supported the turnaround.
Manufacturing businesses have collectively posted their highest ever EBITDA at Rs. 748 crore vis-à-vis Rs. 578 crore in the previous year. The operating margin at 20.1% and return on average capital employed at 27.1% has been encouraging. The carbon black, rayon and textiles businesses were the major contributors to the earnings growth.
The greenfield carbon black capacity expansion at Patalganga is targeted to commence production by the end of May 2010. This will increase the total carbon black manufacturing capacity to 3,15,000 metric tonnes per annum (MTPA). The company is planning to augment its capacity further by 85,000 MTPA each at Patalganga in second phase as well as in southern India.
To sum up, financial services business not only piloted the revenues growth but also led the year-on-year profit walk. The garments and IT- ITeS businesses moved closer towards profitability while the manufacturing businesses achieved highest ever earnings.
Management Comments
Commenting on the results, Dr. Rakesh Jain, MD, Aditya Birla Nuvo, said, “ABNL is uniquely positioned to incubate grow th businesses profitably and adding significant value to the customers through diversified services and products.”
Mr. Sushil Agarwal, CFO, Aditya Birla Nuvo, emphasised , “Our thrust on profitable growth across the businesses has led to a turnaround of about Rs. 600 crore at the bottom-line. We remain confident of creating value for all the stakeholders by capturing growth potential in all our businesses.”
Vision
To become a premium conglomerate with market leadership across businesses, delivering superior value to shareholders on a sustained basis.
Aditya Birla Nuvo Ltd
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