Aditya Birla Nuvo Q3 consolidated net loss at Rs 156 cr

Aditya Birla Nuvo, a diversified company of the Aditya Birla group, has posted a consolidated net loss of Rs 156.40 crore for the quarter ended December, 2008 compared with the net profit of Rs 30.2 crore in the previous corresponding quarter.

The company's consolidated net sales grew 17 per cent to Rs 3,429 crore for the reporting quarter as against Rs 2,931.1 crore.

The company has its exposure in businesses like telecom, textiles, BPO, branded garments, carbon black and life insurance.

On the standalone basis, the company's net profit for the December quarter took a dip of 95.12 per cent at Rs 4.1 crore against Rs 84 crore in the previous corresponding quarter.

The life insurance and BPO segments of the company reported a net loss of Rs 165.8 crore and Rs 37.8 crore, respectively, which dented the company's overall quarterly performance. The loss in insurance business was largely due to the growing share of new business premium and higher spends on expansion of distribution network, said the company in a statement.

On the BPO front, company said: "Efforts are on to plough back profitability by enhancing operating efficiencies, increasing share of high paying KPO segment and migration to low cost locations."

The telecom business recorded a dip of 7.27 per cent in its net profit for the December quarter at Rs 219.5 crore against Rs 236.7 crore last year.

The decline in gains in telecom is attributed to start up costs in Mumbai and Bihar circles coupled with its share in losses of Spice.

In the garment segment, the company said that business was constrained due to the gestating impact of new store launches and higher discounting and profitability was constrained. The revenue in the garment business grew to Rs 293.3 crore from Rs 278.8 crore during the December quarter.

In its outlook, the company said, "The investments pumped, more specifically into the life insurance, BPO and garments business, which have created a stretch on profitability in the short term in line with the plan, will go a long way towards value creation."

The company's shares were closed at Rs 486.60, down 4.34 per cent on the Bombay Stock Exchange today.