ADITYA BIRLA NUOVO

Aditya Birla Nuovo Ltd (ABNL) posted very good numbers for Q2FY13. It showed a 42% jump in consolidated net profit at Rs.304 crore on a 12% rise in net revenue at Rs.5992 crore. EBIDTA jumped up by a smart 30% at Rs.1006 crore. The stock which has been up over the past few days on the back of insurance sector reforms, showed a 12% decline in revenue in this segment. Idea Cellular was the best contributor and its contribution to EBIT increased by 26.3%. The manufacturing segment contribution was flat and ITeS, due to timely execution of some orders and a forex gain, its contribution to EBIT rose more than one and half times. Higher urea sales volumes and growth in revenue from trading of imported fertilisers also helped. In carbon black and insulators businesses, cheaper imports continued to constrain sales volume and profitability.

The company is taking a controlling stake in Pantaloons Fashion Format of Future Group and this is expected to give it an entry into the womenswear and kidswear segments. Post-demerger, the holding of ABNL, through its subsidiary, in the resulting company, will be 50.09% and on getting the necessary approvals, the resulting company is to listed on the BSE and NSE. In the days to come, expectation of reforms in the insurance sector is expected to keep the price buoyant.