For the quarter ended September 30, 2012, Aditya Birla Nuvo Ltd. (ABNL) has posted a year-on-year growth of 12 per cent in revenue at Rs. 5,992 crores. Its EBITDA crossed the Rs. 1,000-crore mark and net profit the Rs. 300-crore mark, growing by 30 per cent and 42 per cent respectively.
In the rayon business improved VFY and ECU realisation and higher VFY sales volume augmented profitability. VFY capacity expansion using spool technology from ENKA, Germany, is expected to be completed in the fourth quarter of the current financial year. Volume growth and better realisation in the linen segment contributed to the growth in overall business.
The company is planning capacity expansion of linen yarn from 2,300 TPA to 3,400 TPA and linen fabric from 5.6 million meters to 8.3 million meters at a capex of Rs. 100 crores.
Driven by continuous scaling up of exclusive brand outlets (EBOs) and supported by like-to-like stores sales growth, revenue from the retail channel grew by 21 per cent. Retail channel stands expanded at 1,197 EBOs spanning across 1.7 million sq. ft. Total revenue of Madura Fashion & Lifestyle grew by nine per cent to Rs. 647 crores. EBITDA rose by 13 per cent to Rs. 65 crores driven by sales growth and improved gross margin.
Pantaloons
The proposed acquisition of a controlling stake in Pantaloons Fashion Format of the Future Group will give ABNL’s Fashion & Lifestyle business an entry into the womenswear and kidswear segments. Post-approval by the stock exchanges, the demerger scheme has been filed with the Bombay High Court. In its hearing, the court has directed Pantaloon Retail India Ltd. (PRIL) to hold its shareholders’ meeting on December 6 next. An application has also been filed with the Competition Commission of India for its approval.
PRIL, through a court scheme of arrangement, will transfer all undertakings, business activities and operations pertaining to the “Pantaloons Fashion Format” to Peter England Fashions & Retail Ltd. (the resulting company), a subsidiary of ABNL. Post-demerger, the holding of ABNL, through its subsidiary, in the resulting company will be 50.09 per cent.