Aditya Birla Nuvo Ltd has reported a lower net profit of Rs 252 crore in the October-December 2011 period, against Rs 274 crore in the year-ago period.
Profitability in the reporting period was primarily affected by higher depreciation and interest costs relating to 3G investments in the telecom business, the company said in a statement.
The company has businesses ranging from textiles to financial services.
The consolidated financial results for the quarter and year to date under review are not comparable with that of the corresponding previous periods since there were “acquisitions/ disposals/ stake changes/ mergers/ de-merger in subsidiaries and joint ventures,” said the company.
“While some of the businesses did get affected due to sector specific challenges, other businesses supported the overall earnings growth of the company. This reflects the strength of its conglomerate model,” said Mr Rakesh Jain, Managing Director, Aditya Birla Nuvo.
Wireless broadband
Revenue generated from telecom grew 26 per cent, and from fashion and lifestyle, it was up 17 per cent. Combined revenue from manufacturing grew 45 per cent as the company commenced trading of imported fertilisers.
For the telecom business, Aditya Birla Nuvo plans to participate aggressively in the evolving wireless broadband business.
Going forward, Aditya Birla Financial Services plans to strengthen its distribution and augment its product offerings in the life insurance segment. This company also plans to scale up its book size cautiously and diversify the product portfolio of its NBFC arm.
The book size of Aditya Birla Finance (NBFC) grew by 86 per cent year-on-year to Rs 2,750 crore as on December 31. Aditya Birla Nuvo launched 69 exclusive brand outlets during the quarter, taking it to 1,082 outlets spread across 1.6 million square feet.