Annual report 2012-2013 - Aditya Birla Nuvo, Ltd

Aditya Birla Nuvo Limited
MANAGEMENT DISCUSSION AND ANALYSIS
combined together, expanded to 1,443
exclusive brand outlets/stores spanning
across 3.7 million square feet besides
more than 4,750 departmental stores and
multi-brand outlets.
The business generated return on
operating capital employed of 25%
driven by strong earnings and working
capital management.
Telecom
Idea has been the biggest revenue market
share gainer since past four years.
It ranks among the top 10 cellular
operators in the world with 1.6 billion
minutes of voice usage per day.
It ranks 3 rd in India in terms of revenue
market share, which grew from 14.4%
to 14.8% 1 in past one year.
It was serving a large customer base of
about 122 million subscribers as on
31st March, 2013.
Idea is a USD 8 billion company by
market cap (as on 29th May, 2013) and
USD 4 billion company by revenue size.
Idea is generating strong cash profit and
has a sound balance sheet to support
its growth plans.
The Board of Directors of Idea proposed
a maiden dividend.
for net working capital. Having received the
shareholders’ approval, the Company is in
the process of divesting the Carbon Black
business, effective from 1st April, 2013. The
cash inflow from the divestment will
strengthen the Company’s balance sheet.
Manufacturing Businesses:
The combined revenue of Agri, Rayon
and Insulators businesses rose by 28%
to ` 4,155 Crore. EBITDA is up by 10%
to ` 446 Crore despite lower profitability
in the Agri business on account of
planned maintenance shutdown. Rayon
business contributed strongly to the
earnings led by higher volumes and
improved realisation in both the VFY and
Chemicals segments.
Rayon business has commissioned an
additional unit of VFY using Spool
Technology imported from ENKA,
Germany, at a capex of about ` 270
Crore. This will help business to
manufacture premium quality yarn
especially in the superfine segment. The
new VFY plant has been commissioned
and is currently under ramp up.
Capital Infusion:
Aditya Birla Nuvo, as a premium
conglomerate, is progressing well on the
growth path to tap sector opportunities. To
meet its growth capital requirements, the
Company had issued 16.5 million warrants in
May 2012 to Promoters/Promoter Group on
a preferential basis after being approved by
the shareholders. Of the planned equity
infusion of about ` 1,500 Crore, a sum of
` 376 Crore has already been received as
25% application money in May 2012 itself. A
sum of ` 456 Crore was received towards
the balance 75% amount payable on
conversion of 6,680,000 warrants, in March
2013. In terms of the Issue, the balance
9,820,000 warrants are to be converted for
` 671 Crore on or before 9th November,
2013. The equity infusion will not only
strengthen the financial position of the
Company but also act as a seed capital for
capturing the next level of growth.
MANAGEMENT DISCUSSION AND ANALYSIS
IT-ITeS:
Aditya Birla Minacs ranks among the top
six Indian BPO companies by revenue
size (Source: NASSCOM).
During 2012-13, its revenue reached near
to ` 2,500 Crore mark (USD 457 million).
It is generating steady cash profit to fund
its capex and working capital
requirements.
Considering the Carbon Black Business
scenario, both in the Indian and the global
context, ABNL has decided to divest its
Carbon Black Business, subject to the
requisite approvals, on a going-concern basis,
by way of slump sale for a lump sum
consideration of ` 1,451 Crore as an
enterprise value, subject to the adjustment
Note 1 : Based on gross revenue for UAS & Mobile licenses only, for October 2012 - December 2012 quarter, as released by Telecom Regulatory
Authority of India (“TRAI”)
Annual Report 2012-2013 21