Aditya Birla Nuvo posts strong results in last quarter

15 May '12

4 min read

During 2011-12, Aditya Birla Nuvo Limited (ABNL) has posted a strong 20% growth in revenue at 21,840 Crore. EBITDA at 3,259 Crore reflects a 21% growth. Net profit at 890 Crore is up by 8%.

During the fourth quarter, revenue rose by 15% and EBITDA grew by 11%. Earnings before Tax (before exceptional items) at 326 Crore de-grew by 15%.

The rise in depreciation and interest costs primarily relating to 3G investments in the Telecom business has constrained net profit.

Management Comments
Commenting on the results, Dr. Rakesh Jain, Managing Director said, “Aditya Birla Nuvo, as a conglomerate, is progressing well on the growth path to tap sector opportunities. ABNL has made this evident by outperforming the industry across most of its businesses. ABNL is committed to keep up this trend.”

Mr. Sushil Agarwal, Whole Time Director and CFO remarked that, “ABNL has posted strong results considering the testing macro-economic scenario and earnings pressure in some of its businesses. ABNL will continue to pursue its growth journey. The Promoter infusion will further strengthen the Company's balance sheet to support the future growth”.

Fashion & Lifestyle:
Madura Fashion & Lifestyle crossed the 2,200 Crore revenue mark – almost doubling its revenue size in just two years.

Its key brands viz., Louis Philippe, Van Heusen, Allen Solly and Peter England continued to outperform the industry.

Led by strong sales growth and improved product mix, EBITDA shot up by 46% to ` 198 Crore.

Its retail channel achieved double digit like to like stores sales growth. The retail channel stands expanded to 1,129 EBOs across 1.6 million square feet.

ABNL aims to fortify its leadership position in the Fashion & Lifestyle business by entering into the value segment including kidswear and womenswear. In this direction, ABNL's Board has approved the proposed acquisition of a controlling stake in Future Group's 'Pantaloons Format Business' post its demerger from Pantaloon Retail (India) Ltd (PRIL), subject to requisite approvals. First PRIL will issue Optionally Fully Convertible Debentures worth ` 800 Crore to ABNL or its subsidiary.

Then PRIL will demerge the Pantaloon Format (resulting entity) through court scheme of arrangement. ABNL's stake in the resulting entity will be 45% triggering open offer.

ABNL's holding in the resulting entity post open offer shall be a minimum of 50.01%. The resulting entity will become a listed subsidiary of ABNL. The transaction is likely to be completed in the next 8 to 10 months.

Manufacturing
Combined revenue soared by 33% to 6,244 Crore. Agri business crossed 2,000 Crore revenue mark supported by commencement of trading in imported fertilizers. Textiles business crossed 1,000 Crore revenue mark.

EBITDA was maintained at 752 Crore. Higher trading of imported fertilisers in the Agri-business has augmented profitability, including pricing gain due to favourable forex movement. Improved realisation in the Rayon and the Textiles businesses also contributed. However, dumping from China and rise in production costs strained profitability in the Carbon Black and Insulators businesses.

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