Diversified business group Aditya Birla Nuvo’s fourth quarter consolidated net profit dropped 12 per cent as a weak business environment led to a muted revenue growth across its lines of business.
In the January to March period, Aditya Birla Nuvo posted a net profit of ₹176 crore against ₹199 crore, a year earlier.
The board recommended a dividend of ₹7 a share on face value of ₹10 a share.
The total revenue remained almost flat at ₹7,112 crore (₹7,016 crore, a year ago).
The consolidated results include the performance of all five business segments — financial services, telecom, fashion & lifestyle, IT-ITeS and manufacturing.
The Mumbai-based company said that its results are not “strictly comparable” with previous year on account of slump sale of its carbon black business with effect from April 1, 2013.
The company saw a marked decline in its manufacturing business segment due to lower profits in the company’s agri-business unit, which the company said was impacted by the discontinuance of trading in imported P&K fertilisers and the 41 days shutdown for the annual turnaround.
“The urea plant resumed operations on April 8, 2014.
The agri-business will benefit from higher fixed cost reimbursement as per the Government policy and energy savings project in fiscal 2014-15,” the company said.
The company has also divested its shares in the IT-ITeS business (Aditya Birla Minacs) and the proceeds of the disinvestment will get reflected in the first quarter results.
For the full financial year ended March 2014, the company's consolidated net profit grew 8 per cent to ₹1,143 crore.
Revenue for the full year almost remained flat at ₹25,893 crore (₹25,490 crore, a year ago).
For the current financial year, the company has earmarked a capital expenditure plan of about ₹460 crore, of which it plans to invest ₹350 crore in its financial services business.
It may be recalled that the company failed in its bid to become a full-fledged bank in the latest round of bank licensing.
The company’s shares closed at ₹1243.10 a share, up 0.89 per cent, on the BSE.