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Business conglomerate Aditya Birla Nuvo Ltd has reported an improved performance in the quarter ending September 30, 2011, on the back of strong segment-wise performance in the manufacturing, financial services and telecom sectors.
“In spite of the macro-economic conditions, we have been able to generate profits in some areas to make up for the losses in the other areas,” said Dr Rakesh Jain, Managing Director, Aditya Birla Nuvo.
Giving details, he said, the revenue generated from telecom grew 26 per cent, revenue from manufacturing grew 25 per cent and the revenue from fashion and lifestyle grew 24 per cent.
The company clocked a consolidated net profit of Rs 214 crore, for the period under review. In the corresponding period last year, it had registered a net profit of Rs 105 crore.
The company, however, added that the consolidated performance for the quarter and year to date under review were not comparable with that of the corresponding previous periods since there have been acquisitions, disposals, stake changes and other such transactions.
The previous year's and period figures were regrouped and rearranged wherever necessary, it added.
The company posted consolidated revenue of Rs 5,396 crore in the period under review. In the corresponding period last year, the company clocked revenues of Rs 4,584 crore.
The total expenditure incurred by AB Nuvo in the second quarter of 2011 was Rs 4,890 crore, as against the expenditure of Rs 4,194 crore in the same period last year.
In the fashion and lifestyle segment, AB Nuvo is looking at a 15 to 20 per cent long-term growth. “We are focusing on building and growing like-to-like store sales. Our brand outlets have also done well,” said Dr Jain. AB Nuvo launched 90 exclusive brand outlets during the quarter and have reached 1,021 outlets across 1.5 million square feet.
Commenting on the debt, Mr Agarwal said, “We have a long-term debt of Rs 1,800 crore. This has come down from Rs 2800 crore over the last two years. However, the loan which is a part of AB Nuvo's working capital has increased.”
The capital expenditure in the first half of the year was Rs 100 crore and the estimated capital requirement for the second half is Rs 650 crore. On the private equity front, AB Nuvo is looking at investing in the education and health care sectors
On the Bombay Stock Exchange (BSE), Aditya Birla Nuvo stock closed at Rs.947.20, up by 4.48 percent from the previous close.
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