Mumbai: Continued growth in consolidated revenues have been posted by Aditya Birla Nuvo at Rs3,661.6 crore. This is a substantial rise by 58% from Rs2,316.1 crore achieved during the corresponding quarter of FY 2007. Revenues from its subsidiaries and joint ventures, where the company has made substantial investments in the past, grew by 79% to Rs2564.2 crore from Rs1,435 crore. All the businesses are on the growth trajectory.
The Telecom business registered a 49% rise in revenues at Rs1708.1 crores vis-à-vis Rs1148.2 crore with a subscriber base of 21.05 millions as on 31December, 2007, growing at a higher clip than the industry. Idea has received Letter of Intent to operate in the remaining nine circles besides receiving spectrum allocation for Mumbai and Bihar circles. This is a significant move towards having a larger pan India presence.
The life insurance business soared by 185% in revenues to Rs1484.7 crores from Rs521.8 crore. New business premium is up by 163% to Rs498 crores. The business garnered 6.6% market share till Dec’07 up from 5.3% in FY2007, in terms of new business premium amongst private players. This was possible with the substantial investments that the company has made to strengthen the distribution reach. The business now has 339 branches and over 86,000 agents compared to 137 branches and over 57,000 agents in the beginning of the year.
In the garments business, revenues rose by 36% to Rs278.8 crores from Rs204.7 crore. Controlled retail space has been expanded to 4.7 lakh square feet across 235 exclusive brand outlets.
The BPO business reported revenues of Rs403.1 crore. Three new clients including two fortune 500 companies were added during the quarter besides launching one new site in India.
The standalone revenues grew by 25% from Rs881.1 crores to Rs1097.4 crore. The Carbon Black business posted the best ever quarterly revenues. Insulators and fertilizer business also contributed to the revenues growth. After the breakdown in the preceding quarter, the fertilizer plant is now stabilized and is running on full capacity.
Growth in standalone net profit by 59% while investment phase of growth businesses had gestating impact on consolidated profitability. The standalone net profit during the quarter was higher by 59% at Rs84 crore as against Rs52.7 crore attained in the corresponding quarter of last year. Insulators and Carbon Black businesses and income tax refunds contributed significantly to the earnings.
Despite higher standalone profitability, consolidated net profit at Rs30.2 crore is lower by 45% against Rs55.3 crores attained in the corresponding quarter of the preceding year.
The consolidated net profit for nine months ended 31December 2007 is Rs172.6 crore against Rs198.7 crores in corresponding period of previous year despite aggressive growth in telecom, life insurance, asset management and BPO businesses.
In the life insurance business, net loss increased during the quarter to Rs125.8 crore from Rs30.8 crore. This was largely due to rising share of new business premium and higher spends on expanding its distribution reach to regain the market share.
In the BPO business, net loss was higher at Rs38.2 crore, constrained by the weakening of US Dollar, besides ramping up and training costs for new sites. Pre-launch expenses of stores in apparel retail subsidiaries affected the profitability of the garments business. However, the Telecom business, which is now in the profit phase, has reported a substantial jump of 108% in net profit at Rs236.7 crore vis-à-vis Rs113.8 crore earned in the corresponding quarter of the last year.