Aditya Birla Nuvo rose 0.28% to Rs 1,100.45 at 14:11 IST on BSE, with the stock reversing intraday fall after the company declared good Q3 results during market hours today, 11 February 2014.
Meanwhile, the BSE Sensex was up 50.41 points, or 0.25%, to 20,384.68
On BSE, so far 14,180 shares were traded in the counter, compared with an average volume of 11,886 shares in the past one quarter.
The stock was volatile. The stock fell as much as 3.4% at the day's low of Rs 1,060 so far during the day. The stock rose as much as 0.83% at the day's high of Rs 1,106.55 so far during the day. The stock hit a 52-week high of Rs 1,290.10 on 4 October 2013. The stock hit a 52-week low of Rs 930 on 8 April 2013.
The stock had underperformed the market over the past one month till 10 February 2014, falling 3.92% compared with the Sensex's 2.04% fall. The scrip had also underperformed the market in past one quarter, declining 10.86% as against Sensex's 1.61% fall.
The large-cap company has an equity capital of Rs 130.08 crore. Face value per share is Rs 10.
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On a consolidated basis, Aditya Birla Nuvo's net profit rose 11.65% to Rs 345 crore on 2.85% fall in revenue to Rs 6545 crore in Q3 December 2013 over Q3 December 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 14.27% to Rs 1297 crore in Q3 December 2013 over Q3 December 2012. The company said that 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 Pantaloons business with effect from 1 July 2012.
Business-wise, Aditya Birla Financial Services (ABFS) posted a revenue of Rs 1475 crore and earnings before tax of Rs 184 crore during Q3 December 2013. It generated Return on average capital employed (ROACE) of 27% per annum. Birla Sun Life Asset Management is the fourth largest asset management company in India, with a market share of 9.7%. Its average AUM is up by 12% to Rs 92611 crore. The lending book of Aditya Birla Finance expanded by 56% to about Rs 10100 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 1448 crore. ABFS is a large player in the non banking financial services space with funds under management of Rs 117278 crore. ABFS ranks among the top 5 fund managers in India, excluding LIC.
Revenue of fashion & lifestyle business rose by 12% to Rs 1558 crore and EBITDA by 41% to Rs 192 crore in Q3 December 2013. 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 annum.
Madura posted all round growth in top-line, margins and free cash flows. Revenue rose by 23% to Rs 855 crore and EBITDA doubled to Rs 116 crore in Q3 December 2013, led by growth in wholesale channel, retail stores expansion and 4% 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 9 new Pantaloons stores and 1 factory outlet during nine months. To strengthen its market leadership, Jaya Shree has expanded Linen Yarn capacity from 2,300 to 3,400 tons per annum and Linen Fabric capacity from 7.3 to 10.1 million metres per annum, Aditya Birla Nuvo said in a statement.
Idea Cellular is consistently outperforming the industry. Its revenue market share surged from 14.3% to 15.8%. 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 annum to 13% per annum. Its revenue soared by 19% to Rs 6,608 crore and EBITDA rose by 42% to Rs 2,130 crore in Q3 December 2013. Idea is generating healthy cash profits and is strengthening its balance sheet quarter after quarter, Aditya Birla Nuvo said.
In IT-ITeS segment, revenue of Aditya Birla Minacs increased by 19% to Rs 742 crore and EBITDA grew by 5% to Rs 73 crore in Q3 December 2013. The business is posting steady cash profits.
Aditya Birla Nuvo said that ABNL IT & ITeS, a wholly owned subsidiary of ABNL, has entered into an agreement to divest Minacs at an Enterprise Value of $260 million subject to working capital and other adjustments. The transaction is expected to be completed in the next 2 to 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.
In manufacturing (agri, rayon and insulators) segment, revenue from the manufacturing businesses at Rs 1,109 crore and EBITDA at Rs 118 crore in Q3 December 2013 are lower by 19% 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.
Aditya Birla Nuvo said that 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, Aditya Birla Nuvo added.
Aditya Birla Nuvo is a $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 locus on manufacturing businesses has made it a leading player in the agri, rayon and insulators sectors.
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