Annual report 2012-2013 - Aditya Birla Nuvo, Ltd

Aditya Birla Nuvo Limited
MANAGEMENT DISCUSSION AND ANALYSIS
Consolidated Revenue of ABNL grew year-onyear
by 17% to ` 25,490 Crore supported by the
top-line growth across the businesses. This is
despite the fact that Life Insurance witnessed
challenging sector environment.
During the year, private sector’s total new
business premium de-grew y-o-y by 4%.
Growth was impacted by uncertain equity
markets and high interest rates coupled with
regulatory changes. Birla Sun Life Insurance
(BSLI) reported a lower de-growth at 2% and
maintained its 5 th rank among private sector
players. Its market share improved from 7.8%
to 8%. BSLI’s revenue de-grew year-on-year
by 11% to ` 5,037 Crore.
Revenue of other financial services surged
by 79% to ` 1,258 Crore led by the NBFC
business. The revenue of NBFC business
more than doubled to ` 713 Crore in line
with growth in its lending book.
Combined revenue of Fashion & Lifestyle
business rose by 50% to ` 4,930 Crore.
Madura Fashion & Lifestyle continued to
outperform the industry. Driven by stores
expansion and like-to-like stores sales growth,
its revenue grew by 15% to reach
` 2,500 Crore. Pantaloons Fashion & Retail
Ltd. reported revenue of ` 1,285 Crore.
Consolidated Revenue - Segmental
It includes nine months financials of
Pantaloons business acquired with effect
from the appointed date, i.e., 1st July, 2012.
Hence, to that extent, performance is not
comparable with that of the previous year.
Revenue in the Textiles business grew by
9% to ` 1,144 Crore led by the volume
growth and higher realisation in the linen
segment.
In the Telecom business, strong 17% growth
in total minutes on network led to 15%
growth in the top-line at ` 22,407 Crore
(ABNL’s share: ` 5,662 Crore).
IT-ITeS business posted 18% revenue growth
driven by both existing and new clients and
favourable currency movement.
Combined revenue of the manufacturing
businesses (Agri, Rayon and Insulators), grew
by 28%. Revenue growth was largely driven
by higher trading of imported P&K fertilisers
and rise in feed and fuel (natural gas) prices
in the Agri-business. Volume growth and
higher realisation in the Rayon business also
contributed.
Revenue in the Carbon Black business grew
by 5%. Lower sales volumes due to higher
imports were offset by increase in realisation
on account of higher raw material cost.
(` Crore)
2012-13 2011-12
Financial Services 6,295 6,392
Life Insurance 5,037 5,691
Other Financial Services 1 1,258 702
Fashion & Lifestyle 4,930 3,281
Branded Apparels and Accessories 2 3,802 2,243
Textiles 1,144 1,046
MANAGEMENT DISCUSSION AND ANALYSIS
Inter-segment Elimination (16) (8)
Telecom 3 5,662 4,933
IT-ITeS 2,466 2,082
Manufacturing 4 4,155 3,255
Carbon Black 2,036 1,943
Inter-segment Elimination (54) (46)
Consolidated Revenue 25,490 21,840
Note 1 :
Note 2 :
Note 3 :
Note 4 :
Other Financial Services include Asset Management (proportionately consolidated at 50%, being a 50:50 JV till 9 th October, 2012, and
thereafter consolidated as subsidiary since Aditya Birla Financial Services holds 51% w.e.f. 10 th October, 2012), NBFC, Private Equity,
Broking, Wealth Management & General Insurance Advisory.
Represents Madura Fashion & Lifestyle (division of ABNL) and Pantaloons Fashion & Retail Limited (subsidiary of ABNL). In 2012-13, nine
months financials of Pantaloons business are included pursuant to its acquisition with effect from the appointed date, i.e., 1 st July, 2012.
Represents ABNL’s share in Idea’s earnings. Being a joint venture, Idea is consolidated at ~25.3% as per AS-27.
Manufacturing includes Agri, Rayon and Insulators businesses.
Annual Report 2012-2013 23