Aditya Birla Nuvo Q3 net up 7% at Rs386 crore

11 Feb 2015

Aditya Birla Nuvo has reported a net profit of Rs368 crore for the October-December quarter of the current financial year, a seven per cent year-on-year increase compared to a net profit of Rs345 crore for the corresponding quarter of the previous year.

Revenue for the quarter was marginally up at Rs6,640 crore compared to Rs6,545 crore for the corresponding quarter of the previous year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 14 per cent to Rs1,484 crore during the quarter from Rs1,296 crore during the year-ago quarter.

Net profit for the quarter (excluding IT-ITeS business, which was divested with effect from 9 May 2014, and before one-off items) increased by 20 per cent to Rs368 crore from Rs307 crore.
 
For the first nine months of the financial year 2014-14 ended 31 December 2014, Aditya Birla Nuvo reported a net profit of Rs1,084 crore against a net profit of Rs967 crore for the comparable period of the previous year. Net profit (excluding IT-ITeS business, which was divested with effect from 9 May 2014, and before one-off items) for the quarter stood at Rs1,120 crore against Rs802 crore during the first nine months of the previous financial year.

Revenue for the first nine months of the financial year 2014-14 ended 31 December 2014 stood at  Rs19,444 crore compared to  Rs18,781 crore for the corresponding quarter of the previous year, Earnings before interest, taxes, depreciation and amortization (EBITDA) during the period stood at Rs4,272 crore compared to Rs3,664 crore during the corresponding period of the previous year .

Aditya Birla Nuvo has applied for payments bank license in accordance with RBI guidelines. ABNL will be the promoter of the proposed payments bank, holding 51 per cent of its equity capital. Idea Cellular will hold the balance 49 per cent, which may be increased to 60 per cent if permitted from time to time with regulatory approval.

Total funds under management of Aditya Birla Financial Services (ABFS) grew 26 per cent year-on-year to $24.6 billion (Rs147,388 crore). Its quarterly consolidated revenue stood at Rs1,913 crore, posting a 30 per cent year-on-year growth while earnings before tax grew 10 per cent to Rs202 crore.

ABFS ranks among top five fund managers (excluding LIC) in India.

ABFS reported a 23 per cent return on average capital employed (ROACE) during these nine months. ABFS is ramping up its online and offline distribution reach and entering into strategic partnerships to tap sector growth opportunities.

The lending book of Aditya Birla Finance expanded 53 per cent year-on-year to Rs15,475 crore and continues to be healthy. Its gross NPA stands at 1.22 per cent and net NPA at 0.43 per cent.

The new business premium market share of Birla Sun Life Insurance, among the private life insurers, rose 6.6 per cent year-on-year from to 7.5 per cent during April-December 2014. Total AUM of Birla Sun Life Asset Management is up 27 per cent year-on-year at Rs117,489 crore led by 98 per cent growth in its domestic equity AUM.

Revenues of the fashion and lifestyle business extended by 8 per cent to Rs1,676 crore. EBITDA was down at Rs168 crore from Rs192 crore in the previous year quarter.

Madura Coat's revenue rose 7 per cent to Rs913 crore while EDITDA declined to Rs102 crore from Rs116 crore.

Pantaloons revenue increased year-on-year by 7 per cent to Rs450 crore while EBITDA declined to  Rs31 crore from Rs35 crore.

Jaya Shree reported a marginal uptick in revenues at Rs336 crore while EBIDTA declined from Rs50 crore to Rs35 crore constrained by lower linen fabric realisation and wool combing sales owing to weak demand.
 
With a base of 152 million active subscribers, Idea ranks as the sixth largest cellular operator in the world, in terms of subscribers, based on operations in a single country. In India, it ranks 3rd with an improved revenue market share at 17.2 per cent up from 15.8 per cent a year ago.

Its telecom business, Idea Cellular, reported a 21 per cent increase in consolidated revenue to Rs8,009 crore and a 36 per cent increase in EBITDA to Rs2,885 crore. With cash profit generation run rate of Rs2,000 crore per quarter and equity infusion of Rs3,750 crore, Idea's net debt reduced by more than Rs8,250 crore during the nine months and net debt to EBIDTA ratio improved to 1.12 times.
 
Revenue from the manufacturing businesses at Rs1,186 crore expanded by 7 per cent and EBITDA at Rs141 crore increased by 19 per cent.

In the rayon business, profitable growth in VFY segment was offset by lower caustic soda volumes owing to annual maintenance shutdown in power plant and softening of ECU realisation.

In the insulators business, a rise in volumes coupled with higher realisation, mainly to pass on the rise in operating costs, contributed to the earnings growth.
 
ABNL's standalone net debt reduced to Rs2,836 crore led by operating cash profit and lower net working capital. Net debt to annualised EBITDA improved from 2.6 times in March 2014 to 2.3 times in December 2014.
 
Going forward, for fiscal 2014-15, ABNL has plans a capital expenditure of about Rs900 crore, towards funding of growth capital requirement in financial services businesses and capex plan of standalone businesses. Of this, a sum of Rs327 crore has been incurred in the first nine months.