Aditya Birla Nuvo Limited (ABNL), a USD 4 billion conglomerate, having leadership position across its businesses, reported highest ever earnings.
Management comments
Dr. Rakesh Jain, MD, Aditya Birla Nuvo said, "With a leadership position across its businesses that mirror the growing sectors of the Indian economy, ABNL is a uniquely positioned conglomerate. We remain focused to capture opportunities across the businesses to achieve the next level of growth".
Mr. Sushil Agarwal, CFO, Aditya Birla Nuvo emphasised, "ABNL's consistent improvement in operating and financial performance year after year is an outcome of enhanced focus on profitable growth across the businesses. We are committed to maintain this trend of superior performance while creating value for all the stakeholders."
Fashion & Lifestyle
Madura Fashion & Lifestyle sells one branded apparel every two seconds through its 900 exclusive brand outlets spanning across 1.3 million square feet besides more than 1,250 departmental stores and multi brand outlets.
Madura Fashion & Lifestyle has posted a robust 45% growth in revenue at Rs 1,809 crore. It continues to leverage its brand leadership and expanded retail presence to ride on the buoyant demand in the domestic market. Like to like stores sales from the major brands (Louis Philippe, Van Heusen, Allen Solly and Peter England) grew by more than 30%. EBITDA shot up to Rs. 137 crore vis-à-vis loss of Rs. 4 crore in the preceding year.
Manufacturing
Manufacturing businesses are well positioned to tap growth opportunities arising from investment and consumption across agriculture, power, automobiles and textiles sectors. The combined revenue grew by 26% to Rs. 4,689 crore, fuelled by expansion in the carbon black business and buoyant demand in the linen segment. EBITDA stood at Rs. 781 crore up from Rs. 748 crore earned in the last year. Expansion led 19% volume growth and higher power sales in the carbon black business was partly offset by stabilisation of the expanded capacity.
While a steep rise in the input and fuel costs strained profitability in the rayon business, volume growth in the textiles and insulators businesses contributed to the bottom-line. Higher agri-input sales also augmented profitability. Manufacturing businesses posted an operating margin of 16% and return on average capital employed (ROACE) of 26%.
Financial position
The company's standalone balance sheet has been strengthened with net debt to equity improving from 0.74 to 0.58 and net debt to EBITDA from 4.1 to 3.2. This is the outcome of consistent earnings growth, along with the promoter infusion of Rs. 426 crore in December 2010, on conversion of the remaining warrants.
ABNL's strategy going forward includes:
• Continuing to leverage brand leadership and expanded retail space in the Fashion & Lifestyle business
•Caustic soda capacity expansion by 125 TPD to 375 TPD by FY13.
ABNL's thrust is on capturing growth opportunities across the businesses to achieve the next level of growth, supported by its strong balance sheet.
Aditya Birla Nuvo is part of the Aditya Birla Group, India's first truly multinational group. The group operates in 31 countries across the globe, is anchored by an extraordinary force of 131,000 employees belonging to 42 nationalities and derives more than 60% of its revenue from its overseas operations.
Aditya Birla Nuvo Limited
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