Aditya Birla Nuvo Ltd. (ABNL)|Q2FY15 Result Update | Strong EBITDA performance across key verticals; Any news on corporate action will be key triggers: Maintain BUY :: IndiaNivesh

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->
Strong EBITDA performance across key verticals; Any news on
corporate action will be key triggers: Maintain BUY
 Aditya Birla Nuvo Ltd (ABNL) Q2FY15 revenue grew by 1.6% Y/Y to Rs.66 bn.
The revenue growth was driven by Financial Services (+16.1% Y/Y), Telecom
(+10.8% Y/Y), Fashion & Lifestyle (+17.4 Y/Y), and Manufacturing (+16.8% Y/Y).
Segment Revenue Q2FY15 Q1FY15 Q2FY14 Q/Q % Y/Y %
Financial Services 16,563 17,761 15,293 7.2 16.1
Telecom 18,795 17,687 15,958 ‐5.9 10.8
Fashion &Lifestyle 15,293 18,938 16,136 23.8 17.4
IT‐ITES 2,832 ‐ 7,738 ‐100.0 ‐100.0
Manufacturing 8,627 11,611 9,939 34.6 16.8
Total 65,996 62,109 65,065 6.3 1.4
Less: Inter Segment Revenue ‐23 ‐37 ‐139 ‐37.3 ‐83.1
Total 65,973 62,072 64,926 6.3 1.6
 Despite lower revenue base, EBITDA during the quarter went up 24.7% Y/Y to
Rs.14 bn due to turnaround in the fashion & retail business and exit from the
low margin business. EBITDA margin expanded 396 bps Y/Y to 21.4% (v/s 18.8%
in Q2FY14). The key booster for EBITDA margin was significant decline in
employee cost and reduction in other expenses.
 Depreciation expenditure and other income stood at Rs.3,818 mn/Rs.1,070
mn (v/s Rs.3,841 mn/Rs.732 mn in Q2FY14). During the quarter, other finance
cost /finance costs related to leading was Rs.1,598 mn/Rs.2,602 mn (v/s
Rs.1,808 mn/Rs.1,758 mn in Q2FY14).
 Tax outgo during the quarter was Rs.2,369 mn landing to the tax rate of 33.2%
(v/s 33.6% in Q2FY14). During the quarter, ABNL reported minority interest
of Rs.257 mn (v/s Rs.172 mn in Q2FY14).
 Reported Net Profit went up 55.8% Y/Y to Rs.4,521 mn (v/s Rs.2,902 mn in
Q2FY14).
 In FY15, management guided total capex of Rs.4,550 mn [Jaya Shree Rs.800
mn, Agri-Segment Rs.750 mn, Madura Rs.1600 mn, Rayon Rs.1100 mn,
Insulators Rs.300 mn]. Along with this management intend to invest Rs.1500
mn and Rs.3500 mn in Pantaloons and NBFC business.
Key Result Takeaways
Financial Services business update…
 Aditya Birla Financial Services (ABFS) revenue increased 16.1% Y/Y to Rs.11.5
bn. As a result, Earnings Before Tax (EBT) went up 48.4% Y/Y to Rs.2.3 bn (v/s
Rs.1.6 bn in Q2FY14). EBT margin expanded 290 bps Y/Y to 13.3% (v/s 10.4%
in Q2FY14).
 Birla Sun Life Insurance (BSLI) ranked 5th with a market share of 8.0% among
private players. New business premium during the quarter went up 44.8%
Y/Y to Rs.3,650 mn (v/s Rs.2,520 mn in Q2FY14). As a result, Life Insurance
business witnessed growth in revenue (Up 6.2% Y/Y to Rs.11.5 bn v/s Rs.10.8
bn in Q2FY14). Additionally, EBT in Life Insurance business went up 29.3% Y/Y
to Rs.970 mn.
 In its Asset Management business, average AUM grew 30.6% Y/Y to Rs.1,102
bn. NBFC business continues its strong performance - book size increased

LINK
http://www.indianivesh.in/Admin/Upload/635515528350286250_Aditya%20Birla%20Nuvo_Q2FY15%20Result%20Update.pdf