Aditya Birla Nuvo posts net loss of Rs 104.6 cr

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Aditya Birla Nuvo
Mumbai, Oct 25: Aditya Birla Nuvo has posted a net loss of Rs 104.6 crore in the second quarter ended September 30, 2008 against the profit of Rs 47.8 crore in the corresponding period last fiscal. On standalone basis, Company's net profit was Rs 65.3 crore up by 19 per cent against last year's corresponding quarter.

Speaking to mediapersons here on Friday, Oct 24, Company Director Adesh Gupta said, ''Idea (Company's telecom business) has registered a 47 per cent rise in its revenues at Rs 2,299.2 crore against last fiscal's corresponding figure of Rs 1,562.2 crore. However, net profit went down to Rs 144.1 crore against Rs 220.3 crore of Q2 FY 2007-08. EBITA has gone up, but we have incurred increase capex due to rapid expansion of our business. All segments have reported growth and we expect the same amount of profitability.'' The Company's Birla Sun life Insurance grew by 121 per cent with a market share of 8.15 per cent as revenues during the quarter grew from Rs 869.7 crores to Rs 999.4 crore.

BPO business revenues grew by 15 per cent from Rs 393.7 crore to Rs 453 crores. Garments reported revenues of Rs 270.1 crore, an increase of 20 per cent with 24 new Exclusive Brand Outlets (EBOs) launched to take its retail space to 5.7 lakh sq ft across 279 EBOs.

Commenting on the Company's plan on how to face prevailing economic scenario, Mr Gupta said although the global economic downturn had affected exports with demand falling off from the US market, especially in the insulator segment, outlook was optimistic and the Company would grow faster than the market. He, however, added that the Company would rework its plans as per the market's absorption capacity with expansion plans in the service sector moderated.

''This is the time when the right companies will come out in front. The government has pumped in enough liquidity in the market, but there is no faith in the global banking system,'' he added.


UNI

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