Aditya Birla Nuvo on Wednesday reported a 56% increase in consolidated net profit for the September quarter, led by strong operational performance across major verticals and lower employee expenses.
Consolidated net profit rose to Rs 452.05 crore from Rs 290.15 crore in the corresponding period last fiscal. The company benefited from lower employee expenses, which fell 46% to Rs 554 crore. As a result, operating profit or earnings before interest taxes depreciation and amortisation (Ebitda) increased 25% to Rs 1,410 crore.
The company reported 52% y-o-y growth in Ebitda in the fashion and lifestyle business segments even as Ebitda at Idea Cellular, where it owns a little over 23%, rose 29% y-o-y.
The manufacturing segment, which constitutes the agriculture, rayon and insulator business, reported 30% growth in Ebitda.
Other income, which rose 47% to Rs 107 crore, helped to partly negate the effect of higher tax expenses, which went up 52.65% to Rs 237 crore.
Net sales for the quarter, however, rose just 2% to Rs 6,429 crore due to divestment of its IT-ITeS business with effect from May 9, 2014.
Excluding the IT-ITeS business, net sales stood higher by 15%. Aditya Birla Financial Services, which contributes nearly a fourth to topline, reported a 16% rise in revenue to Rs 1,775 crore while revenues from telecom services stood at Rs 1,769 crore, an increase of 11% y-o-y.
The company, which added 108 stores in the September quarter to take the tally to 1,852 stores, spanning 4.5 million square feet (fashion and lifestyle vertical) reported 17% segmental revenue growth to Rs 1,892 crore. Revenue growth in the fashion segment was led by 25% and 14% growth at Madura and Pantaloons, respectively.