A Birla Nuvo

Aditya Birla Nuvo is a well diversified company and it has posted a good performance for Q2FY15. Its consolidated net sales for the quarter rose 2% (YoY) at Rs.6494 crore and yet net profit was up 56% at Rs.452 crore. Thus huge surge in net profit despite the flat rise in topline was on account of a 3% decline in operating cost and a 46% jump in other income. EBITDA  for the quarter was up 26% at Rs.1516 crore and margins came in at 22.98% v/s 18.48% in previous Q2.

The biggest revenue contributors are telecom, which is essentially Idea Cellular at 27% and financial services (insurance included) at 26%. It Fashion & lifestyle business has three formats – Pantaloon, Madura and Jaya Shree and all three together  showed a 17% rise in revenue and 52% jump in EBITDA . Madura remains the biggest contributor here. Idea did very well, with a subscriber base of 144million active subscribers with a revenue market share of 17.1%. Its revenue rose 20% and EBITDA was up 29%. In manufacturing segment, which comprises of agri, rayon and insulators with a 17% rise in revenue and 30% jump in EBITDA.

For current fiscal, the company has earmarked capex of Rs.400 crore (Rs.350 crore for Financial services) and of this, Rs.101crore has already been spent in H1.