Aditya Birla Nuvo Ltd., a diversified conglomerate, reported a lower net profit for the fourth-quarter, both on consolidated and stand-alone basis, impacted by higher depreciation and interest costs, primarily relating to 3G investments in the telecom business, and higher provision for entry tax.
Consolidated Results
The Gujarat-based company posted a fourth-quarter consolidated net profit, after minority interest and share of profit of associates, of Rs.170.27 crore or Rs.14.99 per share, lower by 42 percent than the Rs.293.56 crore or Rs.25.85 per share in the year-ago quarter.
Consolidated results for the quarter included a one-time charge of Rs.103.88 crore, under exceptional item, towards provision for entry tax up to the end of March this year.
Its quarterly net income from operations totaled Rs.5,921.99 crore, compared with Rs.5,156.73 crore in the corresponding quarter a year ago, an increase of 15 percent. Other operating income for the quarter stood at Rs.71.93 crore, compared with Rs.58.44 crore in the year-ago quarter.
During the quarter, income from 'Garments' segment was Rs.575.52 crore, and that from 'Manufacturing Business' (comprising Carbon Black, Fertilizers, Rayon, Insulators and Textiles) amounted to Rs.1,591.62 crore.
Income for the quarter from 'Financial Services' segment was Rs.204.13 crore, whereas that from 'Life Insurance (premium income)' segment amounted to Rs.1,717.15 crore. Aditya Birla Nuvo reported 'IT/ITES' segment income of Rs.573.64 crore, while that from 'Telecom' segment stood at Rs.1,346.79 crore.
For the full year, the company posted consolidated net profit, after minority interest and share of profit of associates, of Rs.890.13 crore, up by eight percent from the Rs.822.10 crore last year. Total income from operations, including other operating income, was Rs.21,840.29 crore, higher by 20 percent than the Rs.18,187.77 crore in 2011.
Stand-alone Results
On a stand-alone basis, the company's net profit for the quarter fell by 33 percent to Rs.63.61 crore or Rs.5.60 per share from the Rs.94.89 crore or Rs.8.35 per share in the previous year quarter.
Stand-alone results for the quarter included a one-time charge of Rs.103.88 crore, under exceptional item, towards provision for entry tax up to the end of March this year.
Total income from operations, including other operating income, stood at Rs.2,153.35 crore, compare with Rs.1,779.79 crore, reflecting a 21 percent growth.
For the full year, the company reported a stand-alone net profit of Rs.345.39 crore, down by nine percent from the Rs.379.69 crore last year. Total income from operations, including other operating income, amounted to Rs.8,433.48 crore, compared with Rs.6,447.24 crore in 2011, an increase of 31 percent.
The company's Board has recommended a dividend of 60 percent or Rs.6.00 per equity share of Rs.10 each and Rs.6.00 per preference share of Rs.100 each for the fiscal year 2012.
Going forward, ABNL's thrust is on capturing growth opportunities across its businesses to achieve the next higher level of growth, the company said.
The company said the Whole-time Director Pranab Barua had tendered his resignation from directorship of the company due to reshuffle in portfolios at the senior most level in Aditya Birla Group and the Board has accepted the same with immediate effect. However, he will continue to be Business Head for Apparel Business of the company.
Managing Director Rakesh Jain said, "Aditya Birla Nuvo, as a conglomerate, is progressing well on the growth path to tap sector opportunities. ABNL has made this evident by outperforming the industry across most of its businesses. ABNL is committed to keep us this trend."
Whole-time Director and CFO Sushil Agarwal commented, "ABNL has posted strong results considering the testing macro-economic scenario and earnings pressure in some of its businesses. ABNL will continue to pursue its growth journey. The promoter infusion will further strengthen the company's balance sheet to support the future growth."
At the BSE, Aditya Birla Nuvo closed Tuesday's trading at Rs.807.30, down Rs.21.55 or 2.60 percent on a volume of 36,000 shares.
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