Global slowdown hitting businesses: Aditya Birla Group

Global slowdown hitting businesses: Aditya Birla Group
PTI
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First Published: Mon, Feb 02 2009. 07 09 PM IST
Updated: Mon, Feb 02 2009. 07 09 PM IST
Mumbai: Diversified conglomerate Aditya Birla Group has said that its various businesses, including mutual fund, life insurance, garments and BPO operations, have been impacted by the global slowdown in the third quarter of current fiscal.
According to an investor presentation by Aditya Birla Group on its third quarter performance, some of the Group’s businesses have been impacted by the global slowdown and it is taking various initiatives, including cost control measures, to face the challenges.
Along with the entire mutual fund industry reeling under impact of volatile stock market and large redemption pressures seen mainly in October, Birla Sun Life AMC saw a plunge of 3% in its average assets under management in the reviewed period against second quarter this fiscal.
“Industry’s average AUM de-grew quarter-on-quarter by 20%, while Birla Sun Life AMC could hold its de-growth to 3%, the lowest quarter-on-quarter fall rate in the industry,” the presentation filed to the stock exchanges today stated.
Meanwhile, the bottomline of the business was impacted by interest costs on temporary borrowings to meet redemptions, it added.
The group’s Business Process Outsourcing operations suffered a hit on its revenue growth due to the downturn worldwide. The presentation said that the group is trying to improve operating efficiency through seats or sites rationalisation and cost control measures.
The group is taking several initiatives to face challenges, including cost control measures, working capital monitoring, raised long term funds of Rs500 crore through issue of Non-Convertible Debentures (NCDs) and capital expenditure plans are being re-aligned to match growth outlook.
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First Published: Mon, Feb 02 2009. 07 09 PM IST