AB Nuvo net down 12% in September quarter

Our Bureau Mumbai | Updated on January 15, 2018

Aditya Birla Nuvo has reported 12 per cent fall in September quarter net profit at ₹283 crore (₹322 crore) on the back of lower contribution by its subsidiary Idea Cellular.

Revenue was up nine per cent at ₹3,594 crore (₹3,284 crore).

Earnings before interest, depreciation, tax and amortisation surged 47 per cent to ₹1,049 crore driven by financial services business.

The Aditya Birla Group is in the process of merging Aditya Birla Nuvo with Grasim and list the financial services business separately. The process of seeking requisite regulatory approvals is in progress and the transaction is expected to be completed in the first half of the calendar year 2017, said the company.

Meanwhile, the board has accepted the resignation of Lalit Naik, Managing Director, and he will be relieved from duty by this month end.

Asset under management of Aditya Birla Financial Services rose 20 per cent to ₹2.18 lakh crore. Its quarterly revenue grew by 29 per cent to ₹2,535 crore and earnings before tax expanded by 66 per cent to ₹348 crore.

ABNL has managed to bring down its net debt to ₹2,199 crore in the September quarter from ₹3,935 crore as of March after realising ₹1,664 crore from the sale of 23 per cent stake in Birla Sun Life Insurance and recovery of government subsidy in fertiliser business. It realised another ₹480 crore as fertiliser subsidy in the last two months.

The combined revenue from linen, urea, viscose filament yarn and insulators business was down 14 per cent at ₹1,300 crore due to higher cost in the agriculture business coupled with lower volumes in textiles and insulators businesses. Ebitda was down nine per cent at ₹188 crore. The company expects to start the payment bank business by first half of next year. The senior management team is in place and the team is working on selecting the right IT system and defining innovative products and cost efficient processes, it said.

Published on November 10, 2016

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