Aditya Birla Nuvo reports results for the quarter ended 31 December 2013

• Posted revenue at Rs. 6,545 crore
• EBITDA rose by 14 per cent to Rs. 1,297 crore
• Net profit grew by 12 per cent to Rs. 345 crore

Rs. crore

Rs. crore
Quarter 3			Consolidated Results	Nine Months
	2012-13 (Previous Year)	2013-14 (Current Year)		2012-13 (Previous Year)	2013-14 (Current Year)
3%	6,737	6,545	Revenue	18,495	18,782	2%
14%	1,135	1,297	EBITDA	3,090	3,674	19%
12%	309	345	Net Profit	860	967	12%
Note: The financial results are not strictly comparable with the previous year on account of slump sale of the Carbon Black Business, with effect from 1 April 2013 and consolidation of the Pantaloons business, with effect from 1 July 2012.

Mumbai: The company has posted strong earnings and is competitively well positioned in most of its businesses.

Quarterly business-wise review

Aditya Birla Financial Services

Aditya Birla Financial Services (ABFS) is a large player in the non-banking financial services space. With funds under management of Rs.117,278 crore, ABFS ranks among the top five fund managers in India, excluding LIC. It posted a revenue of Rs.1,475 crore and earnings before tax of Rs.184 crore during the quarter. It generated ROACE of 27 per cent per annum. Birla Sun Life Asset Management is the fourth largest asset management company in India, with a market share of 9.7 per cent. Its average AUM is up by 12 per cent to Rs.92,611 crore. The lending book of Aditya Birla Finance expanded by 56 per cent to about Rs.10,100 crore as on 31 December 2013. To support its growth, a share capital of Rs.250 crore was infused during nine months, taking its net worth to Rs.1,448 crore.

Fashion & Lifestyle

The quarterly revenue of Fashion & Lifestyle business rose by 12 per cent to Rs.1,558 crore and EBITDA by 41 per cent to Rs.192 crore. It expanded its retail presence to 1,670 exclusive brand outlets/stores, spanning nationwide across 4.11 million square feet. It is generating an operating ROACE of 31 per cent per annum.

Madura posted all round growth in top line, margins and free cash flows. During the quarter, its revenue grew by 23 per cent to Rs.855 crore and EBITDA doubled to Rs.116 crore, led by growth in wholesale channel, retail stores expansion and 4 per cent like-to-like retail stores sales growth. Madura added 276 stores and generated free cash flows of about Rs.250 crore during nine months.

Pantaloons is in the investment phase and is strengthening its retail presence, brand positioning and merchandise to enhance sell through. It has launched nine new Pantaloons stores and one factory outlet during nine months.

To strengthen its market leadership, Jaya Shree has expanded linen yarn capacity from 2,300 to 3,400 tonnes per annum and linen fabric capacity from 7.3 to 10.1 million meters per annum.

Telecom

Idea Cellular is consistently outperforming the industry. Its revenue market share surged from 14.3 per cent to 15.8 per cent. It posted a strong growth in earnings led by robust voice and data usage, improved voice realisation, scale benefit and cost efficiency. ROACE improved from 9 per cent per annum to 13 per cent per annum. Its revenue soared by 19 per cent to Rs.6,608 crore and EBITDA rose by 42 per cent to Rs.2,130 crore. Idea is generating healthy cash profits and is strengthening its balance sheet quarter after quarter.

IT-ITeS

Revenue of Aditya Birla Minacs increased by 19 per cent to Rs.742 crore and EBITDA grew by 5 per cent to Rs.73 crore. The business is posting steady cash profits.

Divestment of Aditya Birla Minacs

ABNL IT &; ITeS Limited, a wholly owned subsidiary of ABNL, has entered into an agreement to divest Minacs at an Enterprise Value of US$260 million subject to working capital and other adjustments. The transaction is expected to be completed in the next 2-3 months, subject to the requisite customary and regulatory approvals. The divestment proceeds will support growth plans of ABNL and ensure its greater focus in the other businesses.

Manufacturing (Agri, Rayon and Insulators)

The revenue from the manufacturing businesses at Rs.1,109 crore and EBITDA at Rs.118 crore are lower by 19 per cent mainly on account of the discontinuance of trading in imported P&;K fertilisers, which has also led to rationalisation of capital employed through reduction in the outstanding subsidy. The Rayon Business recorded its highest ever quarterly earnings. The new superfine yarn unit, currently operating at full capacity, will help in enhancing product quality and range.

Balance sheet

The standalone net debt to annualised EBITDA improved to 2.1 and net debt to equity improved to 0.33 compared to 3.3 and 0.53 respectively in March 2013. In November 2013, the promoters infused Rs.671 crore on conversion of remaining warrants.

The strengthening of the company’s balance sheet will support its growth plans, going forward.

About Aditya Birla Nuvo Ltd

Aditya Birla Nuvo is a US$4.75 billion conglomerate. Over the years, it has successfully ventured into the service sectors viz., Financial Services (Life Insurance, Asset Management, NBFC, Private Equity, Broking, Wealth Management and general insurance advisory), Fashion & Lifestyle, Telecom, and IT-ITeS. Its razor sharp focus on Manufacturing Businesses has made it a leading player in the Agri, Rayon and Insulators sectors.

Aditya Birla Nuvo is part of the Aditya Birla Group, a US$42 billion Indian multinational. The Group operates in 36 countries across the globe, is anchored by an extraordinary force of over 136,000 employees belonging to 42 nationalities and derives more than 50 per cent of its revenue from its overseas operations.

Disclaimer : Certain statements in this "Press Release" may not be based on historical information or facts and may be "forward looking statements" within the meaning of applicable securities laws and regulations, including, but not limited to, those relating to general business plans &; strategy of the company, its future outlook &; growth prospects, future developments in its businesses, its competitive &; regulatory environment and management's current views &; assumptions which may not remain constant due to risks and uncertainties. Actual results could differ materially from those expressed or implied. The company assumes no responsibility to publicly amend, modify or revise any statement, on the basis of any subsequent development, information or events, or otherwise. This "Press Release" does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of the company's shares. The financial figures in this "Press Release" have been rounded off to the nearest Rs. one crore. The financial results are consolidated financials unless otherwise specified.