Aditya Birla Nuvo, which has interests in fashion to financial services, saw a 42 per cent fall in net profit in the March quarter, thanks to a rise in depreciation and interest costs relating to its 3G investments in the telecom business.
The company’s net profit stood at Rs 170 crore in the quarter, down from Rs 294 crore in the corresponding period the year before. Its revenue, however, saw a rise of 15 per cent to Rs 5,994 crore from Rs 5,215 crore in the year-ago period.
Net profit for the entire year stood at Rs 890 crore, compared with Rs 822 crore in 2010-11 — a rise of eight per cent. It posted a strong revenue growth of 20 per cent in the financial year at Rs 21,840 crore against Rs 18,188 crore the previous year.
The company saw rise in interest costs and depreciation of Rs 170 crore in its telecom business alone. “Aditya Birla Nuvo, as a conglomerate, is progressing well on the growth path to tap sector opportunities. It has made this evident by outperforming the industry across most of its businesses. It is committed to keeping this trend,” said Rajesh Jain, managing director, Aditya Birla Nuvo.
Madura Fashion and Lifestyle, a division of Aditya Birla Nuvo, crossed the Rs 2,200 crore revenue mark in 2011-12. The retail channel achieved double digit sales growth. The company’s carbon black and insulators business were adversely impacted due to dumping by China.
Consolidated net sales of the company rose by 38% to Rs 2,465.9 cr