Aditya Birla Nuvo on Thursday reported 8% increase in its net profit in the December quarter to Rs 398 crore, not comparable with previous year due to the demerger of its fashion business.
Net sales in the quarter fell 16% to R5,584 crore in the third quarter.
“The scheme of arrangement for the consolidation of the branded apparel businesses under Pantaloons fashion & Retail has been sanction by the Gujarat and Bombay High Court. Pursuant to demerger of Madura into Pantaloons Fashion and Retail, Madura and Pantaloons business ceased to be division and subsidiary of Aditya Birla Nuvo and hence excluded from consolidated financials. Hence, previous year’s reported financials are not comparable,” the company said in a statement.
The company’s earnings before interest, taxes, depreciation and amortization for the quarter was up 7.7% from a year ago to R1,484 crore.
For FY16, the company is planning to invest R150 crore as capital expenditure for its divisions.
It is also planning to fund R800 crore for the growth capital requirements of the financial services business. Out of these capital commitments, capital expenditure of R88 crore and investment of R392 crore has already been done during the nine months period ending December.
The company expects that its books will be strengthened with R1,664 crore from the sale of 23% stake in Birla Sun Life Insurance.
Shares of Aditya Birla Nuvo on Thursday closed at R758.50 per share down 7.75% on the Bombay Stock Exchange from its previous close.