Aditya Birla Nuvo reports results for the quarter ended 30 June 2015

12 August 2015

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Consolidated results	Quarter 1
	2014-15 (Previous year)	2015-16 (Current year)
Revenue	6,207	6,820	10%
EBITDA	1,271	1,671	31%
Net Profit	264	397	50%
Note1: Pursuant to the demerger of Madura Fashion &Lifestyle into Pantaloons Fashion &Retail Ltd. (PFRL) through a composite scheme of arrangement, PFRL will cease to be a subsidiary of ABNL w.e.f. 1 April 2015. Pending the High Courts’ approval to the scheme, financial results of the Fashion &Lifestyle business have been consolidated in ABNL.

Aditya Birla Nuvo (ABNL) has reported strong earnings growth during the first quarter ended 30 June 2015. Its revenue grew year on year by 10 per cent, EBITDA surged by 31 per cent and net profit rose by 50 per cent.

Business-wise review

Aditya Birla Financial Services
Aditya Birla Financial Services (ABFS) ranks among the top five fund managers in India (excluding LIC). It has a diversified portfolio with 10 lines of businesses. Its assets under management (AUM) grew by 29 per cent to USD 28.9 billion (Rs.173,170 crore). Its consolidated revenue at Rs.2,022 crore registered a 22 per cent rise and earnings before tax is up by 18 per cent at Rs.260 crore.

The lending book of Aditya Birla Finance has expanded by 44 per cent to Rs.18,175 crore, ahead of the market growth. Its loan book continues to be well diversified and healthy with Gross NPA at 0.84 per cent and Net NPA at 0.22 per cent. Led by equity infusion and strong internal accruals, its net worth stands expanded by 47 per cent at Rs.2,679 crore. The Housing Finance business, which commenced operations in October 2014, has reported lending book at Rs.450 crore as on 30 June 2015.

Birla Sun Life Insurance (BSLI) improved its private sector ranking from fifth to fourth in India with new business premium market share at 8.6 per cent. It maintained its numero uno position in the group segment. Its AUM rose by 13 per cent to Rs.30,385 crore. BSLI reported its Embedded Value at Rs.3,260 crore (as on 31 March 2015) and the Value of New Business margin at 14.1 per cent for 2014-15.

The quarterly average AUM (AAUM) of Birla Sun Life Asset Management rose by 33 per cent to Rs.141,664 crore. It ranks as the fourth largest asset management company in India with an improved market share of 10.22 per cent up from 9.98 per cent attained in the previous year. Its equity AAUM nearly doubled to Rs.27,704 crore and Offshore AAUM more than doubled to Rs.14,280 crore.

The premium placement of Aditya Birla Insurance Brokers rose by 24 per cent, twice the industry growth rate, leading to a gain in the market share. MyUniverse, India’s No. 1 online personal finance management platform continues to grow. It enjoys the trust of 1.8 million registered users and is helping customers manage Rs.16,800 crore as on date. It ranks among the top 20 SIP distributors in India. ABFS signed a joint venture agreement with MMI Holdings Ltd. in June 2015 to foray into the Health Insurance and Wellness business in India. An application has been made to the regulator for obtaining the license.

Fashion &Lifestyle (Madura and Pantaloons)
ABNL’s Fashion &Lifestyle business is the largest branded menswear and womenswear player in India with over 10.8 million loyal customers. Its wide fashion retail presence stands increased to 1893 stores spanning 4.8 million square feet. During the quarter, its revenue rose by 14 per cent to Rs.1,321 crore and EBITDA by 37 per cent to Rs.79 crore despite lower customer footfalls and higher discounting witness across the industry.

Driven by retail store expansion and growth in the wholesale channel sales, Madura’s revenue extended by 12 per cent to Rs.884 crore and EBITDA by 10 per cent to Rs.68 crore. It launched 24 stores (net) during the quarter to reach 1,759 stores.

The revenue of Pantaloons Fashion &Retail Ltd. (PFRL) is up by 14 per cent at Rs.439 crore backed by stores expansion and like-to-like growth of 4.2 per cent. It posted an EBITDA of Rs.4 crore against a loss of Rs.4 crore reported last year. As a result of its continued focus on enriching product portfolio, the revenue share of its exclusive brands has increased from 52 per cent to 55 per cent.

Consolidation of Fashion &Lifestyle Businesses
The Scheme of Arrangement for consolidation of the branded apparel businesses under PFRL has been filed with the stock exchanges, SEBI and respective High Courts. The Court convened meetings for obtaining shareholders’ and creditors’ approval to the Scheme are scheduled on 7 September 2015 (for PFRL) in Mumbai and 8 September 2015 (for ABNL) in Veraval, Gujarat.

Telecom (Idea Cellular)
Idea ranks third in India with an improved revenue market share of 18.2 per cent up from 16.6 per cent a year ago. Having a base of 166 million subscribers, Idea is the sixth largest cellular operator in the world in terms of subscribers, based on operations in a single country. Idea’s consolidated revenue jumped by 16 per cent to Rs.8,795 crore and EBITDA is up by 32 per cent at Rs.3,351 crore on the back of rise in minutes of use and data volumes. Led by the post tax cash profit generation of Rs.2,553 crore during the quarter, standalone net debt to EBITDA remained comfortable at 1.49 times. Idea has a competitive spectrum profile with 87.6 per cent of total spectrum holding of 270.7 MHz being acquired through auctions. The spectrum acquired through auction provides the flexibility to offer any service, 2G, 3G or 4G based on consumer demand and development of the eco-system.

Divisions (Jaya Shree, Indo-Gulf Fertilisers, Indian Rayon and Aditya Birla Insulators)
ABNL’s divisions are India’s leading manufacturers of linen, urea, viscose filament yarn (VFY) and insulators. Combined together, their revenue at Rs.1,434 crore was up by 16 per cent and EBITDA at Rs.196 crore surged by 41 per cent.

Driven by a 19 per cent growth in urea volumes, improved energy efficiency and higher share of value added neem coated urea, EBITDA of Indo-Gulf has more than doubled to Rs.59 crore. In the first quarter of the previous year, urea volumes were impacted on account of a 15 day plant breakdown / shutdown. EBITDA of Indian Rayon grew by 10 per cent to Rs.60 crore spurred by growth in VFY volumes and a higher share of superfine yarn. Aditya Birla Insulators saw its EBITDA augmenting from Rs.8 crore to Rs.26 crore largely because of a 64 per cent rise in volumes and improved yield. In the first quarter of the previous year, operations in the Rishra plant were disrupted / suspended for 42 days due to labour unrest.

Balance sheet
The realisation of subsidy in the agribusiness and operating cash flows resulted in reduction of net debt from Rs.3,584 crore in March 2015 to Rs.3,202 crore in June 2015. The standalone balance sheet remains healthy with net debt to EBITDA at 3.1 times and net debt to equity at 0.37.

Going forward
For 2015-16, ABNL has earmarked a capital expenditure plan of about Rs.300 crore. The company also plans to fund the growth capital requirements of the Financial Services business to the tune of Rs.600 crore. ABNL has recently forayed in the Solar Power business which will also require equity funding to bid for upcoming projects.

About Aditya Birla Nuvo Ltd.
Aditya Birla Nuvo is a USD 4.4 billion conglomerate operating in the services and manufacturing sectors where it commands a leadership position. Its service sector businesses include Financial Services (Life Insurance, Asset Management, NBFC, Housing Finance, Private Equity, Broking, Wealth Management, online money management and general insurance advisory), Fashion &Lifestyle (Branded apparels and accessories) and Telecom. It is a leading player in the Linen, Agri, Rayon and Insulators businesses. ABNL is foraying into the health Insurance and the Solar Power businesses.

Aditya Birla Nuvo is part of the Aditya Birla Group, a USD 41 billion Indian multinational. The Group operates in 36 countries across the globe, is anchored by an extraordinary force of about 120,000 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 ®ulatory 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 ` one Crore. The financial results are consolidated financials unless otherwise specified.