Aditya Birla Nuvo Q2 net declines 12 pc to Rs 283 cr

Aditya Birla Nuvo Ltd (ABNL) has reported a decline of 12.1 per cent in its consolidated net profit at Rs 283 crore for second quarter ended September 30, 2016.
The company had reported a net profit of Rs 322 crore during the July-September quarter of 2015-16.
"Net profit at Rs 283 crore de-grew year-on-year due to reduction of ABNL's share in Idea's net profit by Rs 156 crore," the company said in a statement.
The net profit of company's telecom arm Idea Cellular had declined from Rs 762 crore to Rs 91 crore mainly on account of higher interest and amortisation costs pertaining to the spectrum acquired in the earlier year, it said.

Revenue (consolidated) increased by 9 per cent during September quarter of 2016-17 at Rs 3,594 crore against Rs 3,284 crore in the corresponding period a year ago.
Going forward, ABNL said it has planned a capex of about Rs 325 crore for its divisions, including Rs 191 crore and Rs 40 crore towards the expansion of linen yarn and VFY capacities, respectively.

Besides, there will be a capital requirement to the tune of about Rs 900 crore in the financial services businesses, including new ventures Payments Bank and health insurance, it said.
About the amalgamation of ABNL with Grasim, it said: "The process of seeking requisite regulatory approvals for the scheme of amalgamation of ABNL with Grasim and the subsequent demerger and listing of the financial services business is in progress."

The transaction is expected to be completed in the first half of the calender year 2017, it added.
The USD 3.6 billion conglomerate is present in financial business, telecom, linen, agriculture and insulators sectors.
ABNL has recently ventured into the solar power business and has also received in-principle approval from RBI to set up a Payments Bank in joint-venture with Idea Cellular.
Stock of the company closed 2.39 per cent higher at Rs 1,324.15 on BSE.