MIRA
INFORM REPORT
|
Report Date : |
11.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
ADITYA
BIRLA NUVO LIMITED (w.e.f.27.10.2005) |
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Formerly Known
As : |
INDIAN
RAYON AND INDUSTRIES LIMITED (w.e.f.23.01.1987) INDIAN
RAYON CORPORATION LIMITED |
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Registered
Office : |
Indian Rayon Compound, Veraval - 362 266, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of Incorporation
: |
26.09.1956 |
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Com. Reg. No.: |
04-1107 |
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Capital
Investment / Paid-up Capital : |
Rs.1136.100 millions |
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CIN No.: [Company Identification
No.] |
L17199GJ1956PLC001107 |
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TAN No.: [Tax Deduction & Collection
Account No.] |
BRD100317C |
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PAN No.: [Permanent Account No.] |
AAACI1747H |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business
: |
Manufacturing and Marketing of Viscose Filament
Yarn, Sulphuric Acid, Carbon-di-sulphide, Anhydrous Sodium Sulphide, Yarn,
Cloth, Reinforced Rubberlined Hosepipes, other Hosepipes, High and Low
Tension Insulators and Bushings, Portland Black and Liquid Argon. |
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No. of Employees
: |
14724 Approximately |
RATING & COMMENTS
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MIRA’s Rating : |
A (67) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD
220000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company
having fine track. Financial position of the company appears to be sound.
Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered normal for business
dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
Indian Rayon Compound, Veraval - 362 266, |
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Tel. No.: |
91-2876-245711
/ 245735 / 245758 / 248401 |
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Fax No.: |
91-2876-243220 |
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E-Mail : |
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Website : |
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Corporate Office 1 : |
A-4, Aditya
Birla Centre, S K Ahire Marg, Worli, Mumbai – 400 030, |
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Tel. No.: |
91-22-66525585 |
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Fax No.: |
91-22-66525821
/ 24995821 |
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Corporate Office 2 : |
Survey
No. 62/2A, 62/2B, Parappana Agrahara, off Hosur Road, Vegur Hobli, Bangalore
– 560068, Karnataka, India |
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Tel. No.: |
91-2876-245711 |
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Fax No.: |
91-2876-243220 |
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Head Office : |
91
Sakhar Bhawan, 9th Floor, 230 Nariman Point, Mumbai – 400 021, |
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Tel. No.: |
91-22-2204
5004 |
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Fax No.: |
91-22-2204
3686 |
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E-Mail : |
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Factory 1: |
GARMENTS DIVISION: Madura
Garments M G
House, Plot No. 5B, Doddanekkundi Industrial Area, 1 Stage, Krishnaraja Puram
Hobli, Brookefields, Bangalore-560048, |
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Tel No. |
91-80-67271600 |
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Fax No.: |
91-80-67272626 |
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E mail: |
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Factory 2: |
RAYON DIVISION Indian
Rayon Division Veraval
362 266, Gujarat, |
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Tel No. |
91-2876-245711 /
248401 |
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Fax No.: |
91-2876-243220 |
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E mail: |
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Factory 3: |
Carbon Black Plants: Hi-Tech
Carbon Murdhwa
Industrial Area, P. O. Renukoot 231 217, District Sonbhadra, |
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Tel No. |
91-5446-252387
to 391 |
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Fax No.: |
91-5446-252502
/ 252858 |
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E mail: |
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Factory 4: |
Argon Gas Plant: Rajashree
Gases IGFL
Complex, P. O. Jagdishpur Industrial Area - 227 817, District Sultanpur, |
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Tel No. |
91-5361-270032
to 38 |
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Fax No.: |
91-5361-270595
/ 270165 / 270172 |
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E mail: |
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Factory 5: |
HITECH CARBON, GUMMIDIPOONDI K-16,
Phase II, SIPCOT Industrial Complex, Gummidipoondi - 601 201District
Tiruvallur - Tamil |
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Tel No. |
91-4119-223233
to 36 |
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Fax No.: |
91-4119-223129/223116 |
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E mail: |
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Factory 6: |
Textile Plants: Jaya Shree Textiles P.
O. Prabhasnagar - 712 249, District Hooghly, West |
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Tel No. |
91-33-26721146
/ 26001200 |
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Fax No.: |
91-33-26721683
/ 26722626 |
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E mail: |
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Factory 7: |
Rajashree
Syntex P.
O. Tantigaria, District Midnapur Paschim, PIN: 721 102, (West Bengal), |
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Tel No. |
91-3222-263131
/ 275820 / 263964 |
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Fax No.: |
91-3222-275528 |
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E mail: |
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Factory 8: |
Other Division: Aditya Birla Insulator (Domestic
Marketing) P.
O. Meghasar Taluka Halol, District Panchmahal, Gujarat - 389 330, |
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Tel No. |
91-2676-221002 |
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Fax No.: |
91-2676-223375 |
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E mail: |
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Factory 9: |
Fertilizer Plant : P.O.
Jagdishpur Industrial Area, District Sultanpur - 227 817, |
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Tel No. |
91-5361-270032-38 |
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Fax No.: |
91-5361-270165
and 270595 |
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E mail: |
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Factory 10 : |
Financial Services Division Appejay,
2nd Floor, |
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Tel No. |
91-22-22880660 |
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Fax No.: |
91-22-22881088 |
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E mail: |
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Factory 11: |
Insulator Plants P.O.
Meghasar, Taluka: Halol, District Panchmahal-389330, |
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Tel No. |
91-2676-221002 |
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Fax No.: |
91-2676-223375 |
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E mail: |
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Factory 12: |
Aditya Birla Insulators, Rishra P.O.
Prabhas Nagarl, Rishra, District Hoogly-712249, West |
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Tel No. |
91-33-26723535 |
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Fax No.: |
91-33-26722705 |
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E mail: |
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Factory 13 : |
Hi-Tech Carbon, Patalganga Village: Lohop,
Talavali, Patalganga, Taluka: Khalapur, Dist. Raigad - 410 207, |
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Website : |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Kumar Mangalam Birla |
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Designation : |
Chairman |
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Name : |
Mrs. Rajashree Birla |
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Designation : |
Director |
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Name : |
Mr. B. L. Shah |
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Designation : |
Director |
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Name : |
Mr. P. Murari |
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Designation : |
Director |
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Name : |
Mr. B. R. Gupta |
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Designation : |
Director |
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Name : |
Ms. Tarjani Vakil |
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Designation : |
Director |
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Name : |
Mr. G. P. Gupta |
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Designation : |
Director |
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Name : |
Mr. S. C. Bhargava |
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Designation : |
Director |
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Name : |
Mr. Pranab Barua |
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Designation : |
Director |
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Name : |
Dr. Rakesh Jain |
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Designation : |
Managing Director |
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Name : |
Mr. Tapasendra Chattopadhyay |
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Designation : |
Director |
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Name : |
Mr. Sushil Agarwal |
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Designation : |
Whole-Time Director |
KEY EXECUTIVES
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Name : |
Mr. Sushil Agarwal |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. Manoj Kedia |
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Designation : |
Deputy Chief Financial Officer |
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Name : |
Mr. Devendra Bhandari |
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Designation : |
Company Secretary |
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Executives/ Senior Management Aditya Birla Financial Services : |
Mr. Ajay
Srinivasan (Chief Executive Officer) Mr. Pankaj
Razdan (Deputy Chief Executive Officer) |
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Telecom : |
Mr. Himanshu
Kapania (Managing Director) |
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IT-ITeS : |
Dr. Rakesh Jain
(Business Director) Mr. Deepak Patel (Chief Executive Officer) |
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Fashion and Lifestyle And Textiles : |
Mr. Pranab Barua
(Chief Executive Officer) Mr. S.
Krishnamurthy (President - Jaya Shree Textiles) Mr. Ashish Dikshit (President - Madura Garments) |
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Carbon Black : |
Dr. Santrupt
Misra (Business Head) Mr. S. S. Rathi (President) |
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Agri- Business : |
Dr. Rakesh Jain
(Business Director) Mr. J. C Laddha (Chief Executive Officer) |
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Rayon : |
Mr. Lalit Naik
(Business Head) Dr. Bir kapoor (President) |
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Insulators : |
Dr. Rakesh Jain
(Business Director) Mr. J. C Laddha
(Chief Executive Officer) Mr. Ravi Sinha
(President) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Names of Shareholders |
No.
of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
136203 |
0.12 |
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|
57808494 |
52.42 |
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|
57944697 |
52.54 |
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Total shareholding of Promoter and Promoter Group (A) |
57944697 |
52.54 |
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(B) Public Shareholding |
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|
1680455 |
1.52 |
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9375264 |
8.50 |
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|
224760 |
2.02 |
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|
21531469 |
19.52 |
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|
6286 |
0.01 |
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|
34818234 |
0.01 |
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|
34818234 |
31.57 |
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|
3205322 |
2.91 |
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|
12371036 |
11.22 |
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|
706004 |
0.64 |
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|
1241776 |
1.13 |
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|
164799 |
0.15 |
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|
1068210 |
0.97 |
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|
8767 |
0.01 |
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17524138 |
15.89 |
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Total Public shareholding (B) |
52342372 |
47.46 |
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Total (A)+(B) |
110287069 |
100.00 |
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(C) Shares held by Custodians and against which Depository
Receipts have been issued |
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(1) Promoter and Promoter Group |
1425000 |
-- |
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(2) Public |
1797660 |
-- |
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Total (A)+(B)+(C) |
113509729 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Foreign BankBUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of
Viscose Filament Yarn, Sulphuric Acid, Carbon-di-sulphide, Anhydrous Sodium
Sulphide, Yarn, Cloth, Reinforced Rubberlined Hosepipes, other Hosepipes,
High and Low Tension Insulators and Bushings, Portland Black and Liquid
Argon. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Garments
* |
Nos/000 |
-- |
12957 |
|
Viscose Filament Rayon Yarn |
MT |
17520 |
15389 |
|
Sulphuric Acid and Allied Chemicals |
MT |
57680 |
51214 |
|
Caustic Soda |
MT |
91250 |
87932 |
|
Chlorine |
MT |
80665 |
73985 |
|
Hydro Chloric Acid |
MT |
11115 |
11372 |
|
Spun Yarn |
MT |
44024
spdls |
10769 |
|
Cloth |
000Mtr. |
106
looms |
6614 |
|
Carbon Black |
MT |
314000 |
275560 |
|
High and Low Tension Insulators and Bushings |
MT |
45260 |
43498 |
|
Liquid
Argon |
‘000 SM3 |
3000 |
1277 |
|
Urea |
MT |
2620
per day |
1100111 |
Notes:
The Installed
Capacity is as Certified by the Management and licensed capacity is not given
as licensing has been abolished.
@ Turnover quantity
includes captive consumption, damages, sample sales and shortages and value
includes Export benefits.
* Garment
production includes items produced on job work basis by outside parties and
purchases.
GENERAL INFORMATION
|
No. of Employees : |
14724 Approximately |
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Bankers : |
·
State Bank
of ·
Corporation
Bank ·
Standard
Chartered Grindlays Bank Limited ·
United
Bank of ·
UCO Bank ·
Canara
Bank ·
Punjab
National Bank ·
Bank of ·
HDFC Bank
Limited ·
Citibank
NIA. ·
American Express
Bank Limited ·
Central
Bank of ·
The
Hongkong and Shanghai Banking Corporation Limited ·
Allahabad
Bank ·
State Bank
of Saurashtra ·
Standard
Chartered Bank |
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Facilities : |
* Includes amounts repayable within one year |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
·
Khimji Kunverji and Company Chartered Accountants Address : Mumbai, ·
S.R. Batliboi and Company Chartered Accountants |
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Branch Auditors: |
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Name : |
·
K. S. Aiyar and
Company Chartered
Accountants Address : Mumbai, ·
Deloitte Haskins and Sells Chartered
Accountants |
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Solicitors : |
·
Amarchand and Mangaldas and Suresh A. Shroff and
Company ·
Mulla and Mulla and Craigie, Blunt and Caroe |
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Subsidiaries : |
Aditya Birla Financial Services Private Limited
(ABFSPL) ·
Aditya Birla Capital Advisors Private Limited
(ABCAPL) ·
Aditya Birla Customer Services Private Limited
(ABCSPL) ·
Aditya Birla Trustee Company Private Limited
(ABTCPL) ·
Aditya Birla Financial Shared Services Limited
(ABFSSL) ·
Aditya Birla Money Limited (ABML) o
Aditya Birla Commodities Broking Limited (ABCBL) ·
Aditya Birla Insurance Brokers Limited (ABIBL) ·
Aditya Birla Finance Limited (ABFL) o
Aditya Birla Securities Private Limited (ABSPL)(
w.e.f. 31st July, 2010) ·
Aditya Birla Money Mart Limited (ABMML) o
Aditya Birla Money Insurance Advisory Services
Limited (ABMIASL) Aditya Birla
Minacs Worldwide Limited (ABMWL) ·
Transworks Inc. (TW Inc.) ·
Aditya Birla Minacs Philippines Inc. (ABMPI) ·
AV TransWorks Limited (AVTL) o
Aditya Birla Minacs Worldwide Inc. (ABMWI) Ø
Aditya Birla Minacs BPO Limited (formerly known
as Compass BPO Limited, Ø
Ø
Compass BPO, Inc. (w.e.f. 9th March, 2010) Ø
Aditya Birla Minacs BPO Private Limited (formerly
known as Compass Business Process Outsourcing Limited) (w.e.f. 9th March,
2010) Ø
Compass BPO FZe (w.e.f. 9th March, 2010 upto 24th
February, 2011) o
Minacs Worldwide SA de CV o
The Minacs Group ( o
Bureau of Collection Recovery, LLC (w.e.f. 2nd
June, 2010) o
Minacs Limited o
Minacs Worldwide GmbH o
Minacs Kft. o
Bureau of Collections Recovery (BCR) Inc. (w.e.f.
4th March, 2011) ·
Aditya Vikram Global
Trading House Limited (AVGTHL) ·
Birla Sun Life
Insurance Company Limited (BSLICL) ·
ABNL Investment Limited
(ABNLIL) ·
Madura Garments
Lifestyle Retail Company Limited (MGLRCL) ·
Peter England Fashions
and Retail Company Limited (PEFRL) ·
Indigold Trade and
Services Limited (ITSL) (formerly known as Madura Garments International Brand
Company Limited) (on becoming Associate, ceased to be an subsidiary w.e.f.
27th November, 2009 and again become subsidiary w.e.f. 30th June, 2010) o
LIL Investment Limited (LIL) (w.e.f. 27th July,
2009 and on becoming Associate, ceased to be an subsidiary w.e.f. 27th
November, 2009 and again became subsidiary w.e.f. 30th June, 2010) ·
Aditya Birla Minacs IT
Services Limited (ABMITS) (formerly known as PSI Data Systems Limited) o
Aditya Birla Minacs Technologies Limited (ABMTL)
(formerly known as Birla Technologies Limited) ·
Shaktiman Mega Food
Park Private Limited (w.e.f. 2nd December, 2010) ·
Madura Garments Exports
Limited (MGEL) (merged with the Company w.e.f. 1st January, 2010) ·
Madura Garments Exports
US, Inc. (ceased to be a Subsidiary from 9th February, 2010) ·
MG Lifestyle Clothing
Company Private Limited (MGCCPL) (merged with the Company w.e.f. 1st January,
2010) |
|
|
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|
Joint Ventures : |
·
Birla Sun Life Asset Management Company Limited
(BSAMC) (Directly held by the Company till 22nd March, 2010,
thereafter Joint Venture of ABFSPL) ·
Birla Sun Life Trustee Company Private Limited
(BSTPL) (Directly held by the Company till 22nd March, 2010
thereafter Joint Venture of ABFSPL) ·
IDEA Cellular Limited |
|
|
|
|
Associates : |
·
Birla Securities Limited ·
Indigold Trade and Services Limited (formerly
known as Madura Garments International Brand Company Limited) (w.e.f. 27th
November, 2009, upto 29th June, 2010) ·
LIL Investment Limited (w.e.f. 27th November,
2009, upto 29th June, 2010) |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
175000000 |
Equity Shares |
Rs.10/- each |
Rs.1750.000 millions |
|
500000 |
Redeemable Preference Shares |
Rs.100/- each |
Rs.50.000 millions |
|
|
Total |
|
Rs.1800.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
113509729 |
Equity Shares |
Rs.10/- each |
Rs.1135.100
millions |
|
10000 |
6% Redeemable Cumulative Preference Shares |
Rs.100/-
each |
Rs.1.000
million |
|
|
Total |
|
Rs.1136.100 millions |
Notes:
·
Includes:
o
24989914 equity shares allotted as fully paid-up pursuant
to contracts for consideration other than cash.
o
23375235 equity shares issued as bonus shares by
Capitalisation of Reserves and Securities Premium.
o
3222993 equity shares represented by Global
Depository Receipts.
·
Outstanding Warrants exercisable into Equity Shares
NIL
·
Pursuant to the provisions of Section 206A of the
Companies Act, 1956, the issue of following equity shares are kept in abeyance:
|
Particulars |
No of shares |
|
|
|
31.03.2011 |
31.03.2010 |
|
Right Issue (1994) |
12635 |
12635 |
|
Bonus Shares on above |
6318 |
6318 |
|
Right Issue (2007) |
23972 |
24159 |
|
|
42925 |
43112 |
·
Employee Stock Options exercisable into 195426
Equity Shares of Rs.10/- each are outstanding
·
In Accordance with the Composite Scheme of
Arrangement, 10,000 6% Redeemable Cumulative Preference Share of Rs.100/- each
fully paid-up were issued to preference shareholders (other than the Company)
of Peter England Fashions and Retail Limited. These preference shares are
redeemable by the Company at any time after
·
completion of one year and on or before completion
of five years from the 1st January, 2010, at the face value
·
Figures in brackets represent corresponding number
of shares for Previous Year.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1136.100 |
1031.100 |
950.100 |
|
|
2] Share Warrants |
0.000 |
1420.700 |
3774.100 |
|
|
3] Employee Stock Option Outstanding |
41.400 |
21.300 |
20.200 |
|
|
4] Reserves & Surplus |
52830.000 |
44142.000 |
36472.200 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
54007.500 |
46615.100 |
41216.600 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
13806.100 |
20748.500 |
22170.700 |
|
|
2] Unsecured Loans |
19065.900 |
15651.700 |
22821.400 |
|
|
TOTAL BORROWING |
32872.000 |
36400.200 |
44992.100 |
|
|
DEFERRED TAX LIABILITIES |
1736.100 |
1784.700 |
1802.400 |
|
|
|
|
|
|
|
|
TOTAL |
88615.600 |
84800.000 |
88011.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
17700.400 |
15522.200 |
14762.100 |
|
|
Capital work-in-progress |
879.600 |
2630.600 |
1287.800 |
|
|
|
|
|
|
|
|
INVESTMENT |
54774.000 |
54358.500 |
57123.900 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
12032.400
|
8763.400
|
7476.000
|
|
|
Sundry Debtors |
11562.500
|
6933.300
|
8872.300
|
|
|
Cash & Bank Balances |
213.100
|
143.100
|
898.100
|
|
|
Other Current Assets |
203.000
|
293.300
|
374.500
|
|
|
Loans & Advances |
4974.700
|
6228.500
|
4951.200
|
|
Total
Current Assets |
28985.700
|
22361.600
|
22572.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
8181.700
|
6339.400
|
4508.200 |
|
|
Other Current Liabilities |
4157.500
|
2550.900
|
2262.200
|
|
|
Provisions |
1384.900
|
1182.600
|
964.400
|
|
Total
Current Liabilities |
13724.100
|
10072.900
|
7734.800 |
|
|
Net Current Assets |
15261.600
|
12288.700
|
14837.300
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
88615.600 |
84800.000 |
88011.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Income from Operations |
64445.300 |
48274.700 |
47861.800 |
|
|
|
Other Income |
580.100 |
707.900 |
652.500 |
|
|
|
TOTAL (A) |
65025.400 |
48982.600 |
48514.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
(Increase) / Decrease in Stocks |
(1632.800) |
50.600 |
(216.700) |
|
|
|
Cost of Material |
35492.100 |
23912.000 |
25646.900 |
|
|
|
Salaries, Wages and Employees benefits |
4806.600 |
3483.300 |
2944.200 |
|
|
|
Manufacturing, Selling and Other Expenses |
16658.400 |
13191.700 |
13950.900 |
|
|
|
TOTAL (B) |
55324.300 |
40637.600 |
42325.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
9701.100 |
8345.000 |
6189.000 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST AND
FINANCE EXPENSES (D) |
2810.800 |
3341.000 |
2906.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
6890.300 |
5004.000 |
3282.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1939.500 |
1801.000 |
1659.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
4950.800 |
3203.000 |
1623.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
1153.900 |
369.000 |
248.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
3796.900 |
2834.000 |
1374.300 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
171.800 |
860.300 |
210.600 |
|
|
|
|
|
|
|
|
|
|
Amount
Transferred on account of Scheme of Arrangement |
0.000 |
(1396.000) |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
2500.000 |
1000.000 |
137.500 |
|
|
|
Debenture Redemption Reserve |
461.100 |
531.900 |
162.800 |
|
|
|
Proposed Dividend on Preference Shares |
0.100 |
0.000 |
0.000 |
|
|
|
Proposed Dividend on Equity Shares |
624.300 |
515.100 |
380.000 |
|
|
|
Corporate Tax on Dividend |
101.300 |
79.500 |
44.300 |
|
|
BALANCE CARRIED
TO THE B/S |
281.900 |
171.800 |
860.300 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Foreign Currency |
8364.000 |
6060.800 |
6362.400 |
|
|
|
Rupee Payments |
34.400 |
147.100 |
434.100 |
|
|
|
Export through Merchant Exporters |
61.400 |
17.000 |
10.000 |
|
|
TOTAL EARNINGS |
8459.800 |
6224.900 |
6806.500 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
18275.200 |
11496.900 |
12899.000 |
|
|
|
Stores & Spares |
226.800 |
184.100 |
236.600 |
|
|
|
Capital Goods |
109.400 |
622.000 |
902.000 |
|
|
|
Purchase of Finished Goods |
451.100 |
304.900 |
406.000 |
|
|
TOTAL IMPORTS |
19062.500 |
12607.900 |
14443.600 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) Basic Diluted |
35.84 34.98 |
28.81 27.62 |
14.46 14.46 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 Unaudited |
30.09.2011 unaudited |
|
|
1st
quarter |
2nd
quarter |
|
Net Sales |
18639.300 |
20522.700 |
|
Total Expenditure |
16337.000 |
18081.200 |
|
PBIDT (Excl OI) |
2302.300 |
2441.500 |
|
Other Income |
167.200 |
151.600 |
|
Operating Profit |
2469.500 |
2593.100 |
|
Interest |
711.000 |
815.500 |
|
Exceptional Items |
0.000 |
0.000 |
|
PBDT |
1758.500 |
1777.600 |
|
Depreciation |
497.900 |
512.700 |
|
Profit Before Tax |
1260.600 |
1264.900 |
|
Tax |
318.900 |
345.500 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
941.700 |
919.400 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
941.700 |
919.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
5.84
|
5.79
|
2.83
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.68
|
6.63
|
3.39
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.60
|
8.45
|
4.35
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.07
|
0.04
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.86
|
0.99
|
1.28
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.11
|
2.22
|
2.92
|
LOCAL AGENCY FURTHER INFORMATION
STANDALONE
FINANCIAL PERFORMANCE
Standalone revenue soared by 33% to Rs.64450.000 millions. Revenue growth
was driven by expansion in the Carbon Black business and strong volume growth
in Textiles business. The Company posted its highest ever Standalone EBITDA which grew by 16%
from Rs.8350.000 millions to Rs.9700.000 millions and highest ever Standalone Net profit which grew by
34% from Rs.2830.000 millions to Rs.3800.000 millions. Growth in profitability
was contributed by strong volume growth in the Fashion and Lifestyle, Textiles
and Insulators businesses, higher agri-input sales in the agri-business and
higher power sales in the Carbon Black business. Profitability in the Rayon
business was strained by a steep rise in the input and fuel cost.
FINANCE
During the year,
the Company raised long-term loans aggregating to Rs.940.000 millions by way of
foreign currency borrowings and Rs.2000.000 millions by way of Non-Convertible
Debentures (‘‘NCDs’’). During the year, term loans aggregating to Rs.6980.000
millions and NCDs of Rs.1100.000 millions were repaid during the year.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDIAN ECONOMY:
GROWTH OUTLOOK MODERATED AMIDST INFLATION
Indian economy has
recorded a strong growth in the financial year 2010-11, with GDP growing by
8.5% (year on year) compared to 8.0% in 2009-10. Agriculture sector grew by a
strong 6.6%, aided by the low base in 2009-10 due to poor monsoons. Industrial
sector growth at 7.9% was healthy and almost the same as the previous
year, while
services sector growth moderated to 9.4% from 10.1%. However, the GDP growth
had slowed down in the fourth quarter of 2010-11. GDP grew by 7.8% in the
fourth quarter compared to 8.3% in the preceding quarter.
The major theme in
the Indian economy currently is taming the high inflationary pressure.
Wholesale Price Index ("WPI") averaged 9.6% (year on year) in 2010-11.
In the first three months of 2011-12, inflationary pressures still remain
strong, averaging 9.4%. While food inflation has come down from the highs of
2010, inflation has been facing demand-side pressure. Non-food manufacturing
price (also called core inflation) is at almost record
highs. High global
crude oil prices, as well as government's decision to further deregulate
domestic retail prices of fuel, are keeping fuel inflation up.
The RBI has been
tightening its monetary policy consistently in order to control inflationary
pressure. The RBI's policy rate (repo rate) has been increased by 275 bps since
April 2010, in an effort to rein inflation. High inflation, coupled with high
interest rates owing to RBI's monetary tightening, has adversely affected growth,
especially investment. Lead indicators are pointing towards moderation of growth in the financial
year 2011-12.
Globally, there
are concerns in the form of high government debt and high unemployment in the
developed economies. However, during the year, global environment remained more
or less supportive of
Though growth
outlook for Indian Economy has been moderated,
Savings
Consumption
Domestic private
consumption is a significant component of
Infrastructure
Infrastructure is known
to be a key enabler for sustainable development of any economy. Government of
Outsourcing
IT-ITeS industry
continues to grow as the depth and breadth of services being outsourced
expands. Equipped with skilled human capital and being a low cost destination,
STRONG FOUNDATION
ENERGISED GROWTH
Subject is a USD 4
billion conglomerate having leadership position across its Financial Services,
Telecom, Fashion and Lifestyle, IT-ITeS and Manufacturing businesses. Each of
these businesses represents growing sectors of the Indian Economy which are
driven by the strong fundamentals of the Indian Economy, namely, Savings,
Consumption, Infrastructure Development, Agriculture and Outsourcing.
Equipped with a
pedigree of resources viz., Aditya Birla Group's ecosystem, strong brands,
large customer base, nationwide reach, committed human resource and strong
balance sheet, Subject is well positioned to capitalise on growth opportunities
available across the wide spectrum of the Indian economy.
LEADERSHIP BUILT
BY CONTINUOUS PURSUIT OF STRATEGIC OBJECTIVES
In line with its
vision 'to become a premium conglomerate with market leadership across
businesses delivering superior value to shareholders on sustainable basis',
Subject has built and strengthened leadership position across its businesses.
The business-wise strategic objectives and resulting key achievements are
stated as under:
Aditya Birla
Financial Services ("ABFS") — Be a leader and role model with a broad
based and integrated business:
·
ABFS is a large non bank player with funds under
management of ~USD 20.5 billion (as on 30th June, 2011) and revenue size of USD
1.4 billion having presence across seven verticals.
·
Trusted by ~5.5 million customers and anchored by
~15,000 employees, ABFS has a nationwide presence through more than 1,700
points of presence and about 200,000 agents / channel partners.
·
With entry in two new lines of businesses in past
three years, ABFS has expanded its presence to Life Insurance, Asset
Management, NBFC, Private Equity, Broking, Wealth Management and General
Insurance Advisory.
Telecom (Idea
Cellular) — Building sustainable competitiveness while maintaining growth momentum:
·
Idea Cellular, one of the fastest growing Indian
telecom majors, ranks among the top 10 cellular operators in the world with
more than 1 billion minutes of usage ("MoU") per day.
·
Idea is the third largest cellular operator in
·
Idea is serving a large customer base of more than
95 million subscribers as on 30th June, 2011.
·
Idea is a ~USD 6 billion company by market cap (as
on 30th June, 2011) and ~USD 3.5 billion company by revenue size.
·
Idea holds 16% in
Madura Fashion and
Lifestyle — Capitalising on brand leadership and expanded retail space to
achieve profitable growth:
·
Madura Fashion and Lifestyle is the largest premium
branded apparel player in
·
It sells one branded apparel every two seconds
serving varied fashion and lifestyle needs of customers through about 950
exclusive brand outlets (“EBOs”) spanning across ~1.4 million square feet
besides more than 1,250 departmental stores and multi-brand outlets.
IT-ITeS (Aditya
Birla Minacs) — Diversifying capabilities and building strong order book with
focus on bottom-line:
·
Aditya Birla Minacs is among the top ten BPO
companies in
·
Minacs has global delivery capacities serving more
than 100 clients (including several Fortune - 500 clients) through 35 centers
and about 20,000 employees.
·
It has been named among 'top five emerging
outsourcers to watch for in
Manufacturing
Businesses — Capturing sector growth and realising full potential:
·
Having a combined revenue size of over USD 1
billion, manufacturing businesses yielded ROACE of 26% and EBITDA margin of 16%
in 2010-11.
·
These businesses are well positioned to tap growth
opportunities arising from investment and consumption across Agriculture,
Power, Automobiles and Textiles sectors.
·
Each of these businesses enjoys top position in the
respective industry, as mentioned below:
o
Second largest carbon black manufacturer in
o
Among the best energy efficient fertiliser plants
in
o
Second largest manufacturer of viscose filament
yarn in
o
o
Largest manufacturer of linen fabric in
FINANCIAL
SERVICES (ADITYA BIRLA FINANCIAL SERVICES)
In line with its vision to become a leader and role model in
the financial services sector with a broad based and integrated business,
Aditya Birla Financial Services ("ABFS") is today a large non bank
player having funds under management of more than Rs.922500.000 millions (about
USD 20.5 billion) as on 30th June 2011. It is present across seven business
verticals, viz., Life Insurance, Asset Management, NBFC, Private Equity,
Broking, Wealth Management and General Insurance Advisory. Anchored by about
15,000 employees and trusted by about 5.5 million customers, ABFS has a
nationwide reach through more than 1,700 branches and about 200,000 agents/channel partners. The combined revenue
of ABFS grew from Rs.58710.000 millions to Rs.62960.000 millions (about USD 1.4 billion). ABFS posted
earnings before tax of Rs.4720.00 millions vis-à-vis loss of Rs.3090.000 millions in the
preceding year. Net profit at Rs.3090.000 millions vis-à-vis net loss of Rs.3590.000 millions in the
previous year reflects strong turnaround at the bottom-line.
The key enablers essential
for a successful and sustainable financial services business model are:
a) Strong distribution
b) Talented and skilled
people
c) Product innovation
d) Customer service and investment
performance
e) Trusted brand
f) Scalability and
operational efficiencies
g) Robust risk management
and compliance
Besides being equipped with a nation-wide distribution network,
a large customer base, a talented human
resource pool, proven track record of product innovation, customer
centric approach and superior investment performance, Aditya Birla Financial
Services has a strong parent brand. With entry in two new lines of businesses
in past three years, ABFS has not only diversified its product offerings but
has also scaled its operations to become a large non-bank player with a strong
financial performance.
Aditya Birla Financial Services is well positioned to tap the
immense growth opportunity offered by the Indian financial services sector.
LIFE INSURANCE
(BIRLA SUN LIFE INSURANCE COMPANY LIMITED)
Industry Overview
The Indian Life
Insurance industry currently comprises 22 private life insurers and one public
sector insurer – Life Insurance Corporation of
Having more than
11,500 branches and approximately 2.7 million agents, the life insurance
industry witnessed major regulatory changes during 2010-11. The Insurance
Regulatory and Development Authority ("IRDA") issued new guidelines
for Unit Linked Insurance Products (ULIP) effective from 1st September 2010.
The major provisions in the new guidelines included the capping of difference
between gross yield and net yield, capping of surrender charges, increasing
minimum lock in period and minimum premium payment term from three years to
five years, even distribution of charges over lock-in period, etc. IRDA also
issued distribution related regulations through tightening of licensing norms
for corporate agency and prescribing minimum persistency requirements for
individual life insurance agents.
While the life
insurance industry experienced strong growth before new guidelines became
effective, it witnessed a sharp reduction in new business premium post
September 2010. This was primarily on account of:
·
Withdrawal of all previous ULIPs by life insurers
to comply with the new regulatory framework and transitioning to new ULIPs.
Notably, the guidelines were not only unprecedented but were implemented in a
short time frame.
·
Rationalization of distributors’ compensation in
line with ULIP guidelines.
·
Sales mix of several players shifting in the favour
of Non-ULIPs.
·
Several players shifting towards single premium.
Hence, the industry had reported relatively higher de-growth on the basis of
weighted new business premium.
The new ULIP
regulations brought a paradigm shift across the life insurance sector. Industry
is moving towards a more balanced product mix thereby increasing share of
traditional plans. Other shifts include increased focus on cost
rationalization, productivity metrics and profitability. Several of the top
private life insurers have reported statutory profits in 2010-11. Rising
in-force business, better expense efficiency and a better product mix has led
to profits.
Though ULIP sales
were affected across the industry post new guidelines, these changes are
expected to have a positive impact on the industry in the long run, in terms of
quality of business, long-term orientation, efficiencies in distribution,
operations and customer service, etc.
Performance Review
Birla Sun Life
Insurance ("BSLI") completed its 11th year of successful operations
amidst challenging environment. BSLI ranked among top 6 private life insurers
in
In 2010-11, new
business premium income of BSLI at Rs.20800.000 millions de-grew year on year
by 30%. ULIP sales were impacted across the industry post-new guidelines, which
became effective from 1st September, 2010. However, non-ULIP sales gained
traction. For BSLI, non-ULIPs contributed 25% of its individual new business
vis-à-vis 1% in the previous year
Driven by strong
persistency, the renewal premium of BSLI surged by 41% to Rs.35970.000
millions. The total premium income grew by 3% to Rs.56770.000 millions. AUM
rose by 23% to Rs.197600.000 millions (about USD 4.4 billion). As a life
insurer with a longestablished track record, a significant portion of BSLI's
business (about 95%) is on regular premium basis, which drives a regular stream
of renewal premiums. The 13th month persistency at 83% signifies customer
stickiness and is one of the best in the industry.
Various cost
rationalization initiatives were undertaken during the year. As a result, BSLI
achieved savings of more than Rs.1200.000 millions in operating expenses. The
operating expenses to gross premium ratio improved from 24.1% in 2009-10 to
21.2% in 2010-11. Commission ratio reduced from 9.4% in 2009-10 to 6.7% in
2010-11.
Driven by growing
in-force book, balanced product mix, lower new business strain and better
expense management, BSLI posted its maiden profit in 2010-11. It posted
earnings before tax at Rs.3040.000 millions vis-à-vis loss of Rs.4350.000
millions in the preceding year. No capital infusion was required during
2010-11.
The profitability
of a life insurance company, given the Indian accounting and reserving
standards and regulations, is better reflected by the Embedded Value
("EV") and Value of New Business ("VNB") generated by the
Company. The EV of BSLI has increased from Rs.38160.000 millions as at 31st
March, 2010 to Rs.41080.000 millions as at 31st March, 2011. EV reflects the
value of future profits embedded in the in-force policies written by the life
insurance company. The VNB margin, a measure used for gauging profitability of
new business has increased to 27.5% for the financial year 2010-11 up from
22.5% reported for previous financial year. Shift towards a balanced product
mix and innovative product structure helped BSLI in achieving strong VNB
margin.
Birla Sun Life
Insurance has achieved robust growth across the parameters.
In the direction
of achieving a balanced product portfolio, BSLI launched five traditional plans
and eight ULIPs (as per new guidelines) during the year.
Direct Selling
Agents channel continues to be the largest distribution channel for BSLI
contributing 71% of its individual new business sales during the year.
Bancassurance channel contributed 16% and Corporate Agents and Brokers
contributed 13% of its individual new business sales. BSLI has taken several
initiatives to improve productivity of agency force and enhance distributor
engagement across the channels.
BSLI continued to
deliver superior investment returns to its policyholders with every fund
beating the benchmark. BSLI achieved the distinction of attaining 'zero per
cent' claims outstanding ratio for the second year, meaning, 100% of all the
claims intimated during the year have been processed. This is a live example of
its 'Customer First' approach and clearly speaks of the strong system and
processes it has set in.
Outlook
The financial year
2010-11 was challenging for the life insurance industry. However, the long term
growth potential of the life insurance sector remains strong on the back of
favorable demographics such as high economic growth, rising income levels and
domestic savings, increasing mind-share of life insurance within the
financial savings
component, etc. The total penetration of insurance (denoted by premium as
percentage of GDP) has increased from 2.3% in 2001 to 4.4% in 2010. The level
of penetration, particularly in life insurance, tends to rise as the income
levels increase. Rising awareness towards the need of life insurance is also a
key enabler. In
addition to this,
the recent regulatory changes, viz., capping of charges, etc., have only made
ULIPs more cost competitive for the customers. Tightening of regulations has
forced and will continue to drive life insurers towards better expense
management, writing long term quality business, enhancing standards of customer
retention and service.
With a strong
focus on improving persistency, expanding in-force book, driving cost
efficiencies, superior investment performance and customer service, BSLI is
well positioned to meet the challenges and also tap into the opportunities of
the life insurance industry. It is expected to emerge stronger on the back of
its wide distribution franchisee, a successful multi-channel strategy,
experienced team, a proven track record in product innovation, superior
investment performance and a strong brand name.
ASSET MANAGEMENT
(BIRLA SUN LIFE ASSET MANAGEMENT COMPANY LIMITED)
Industry Overview
The Indian mutual
fund industry currently comprises 43 asset management companies. After
continuous growth for the last few years, the industry registered a marginal decline
in the average AUM ("AAUM") during 2010-11. The AAUM1 of the industry
de-grew by 8% from about Rs.7632000.000 millions (~USD 170 billion) in 2009-10
to about Rs.7005000.000 millions (~USD 156 billion) in 2010-11. Liquidity
pressure led to decline in liquid assets across the industry. After facing net
redemption in liquid schemes during the first nine months, industry witnessed
inflows during the fourth quarter.
Top 5 of 43 assets
management companies contribute to 56% of industry’s AAUM.
Industry's equity
AAUM1 almost remained flat at about Rs.2078000.000 millions (~USD 46 billion).
During the first half of 2010-11, profit booking led to net redemption in
equity funds to the tune of about Rs.152500.000 millions. However, during the
second half year, Industry witnessed net inflows in equity schemes. Share of
equity AAUM in total industry AAUM increased from 28% to 30%. Debt and liquid
assets continue to contribute majority proportion of total industry's AAUM
dominated by treasury investments of banks and corporates. Share of retail
assets in total industry's AAUM increased from ~38% to ~44% supported by market
action in equity assets and outflow of liquid assets in institutional segment.
Meanwhile, the Reserve Bank of
Performance Review
Having a total
AAUM of Rs.675600.000 millions (~USD 15 billion), Birla Sun Life Asset
Management Company ("BSAMC") has completed 16 years of its journey
towards continued wealth creation. In 2010-11, it ranked 5th with 9.1% market
share in terms of domestic AAUM2 rising from 8.3% in 2009-10. While domestic
AAUM2 of industry de-grew by 8%, BSAMC maintained it at Rs.636960.000 millions.
Expanding share of
equity and alternate assets has been a key focus area for BSAMC. While
Non-Equity AAUM remained flat at Rs.523830.000 millions.
Equity and
alternate assets AAUM at Rs.151770.000 millions grew year on year by 12%. Share
of equity and alternate assets AAUM in total AAUM increased from 20.3% to
22.5%. BSAMC posted net equity sales of more than Rs.2500.000 millions in
2010-11 while industry faced net redemption. It ranked among top 3 equity
mobilisers in the industry for the second year in a row. BSAMC's share in
industry's domestic equity AAUM rose from 5.09% to 5.45%
BSAMC successfully
launched its maiden Real Estate Onshore Fund which garnered Rs.10880.000
millions and was closed for subscription in November 2010. Having a strong deal
pipeline, investment team of Real Estate Fund has started deploying the fund
corpus. BSAMC is also laying thrust on expanding its international presence. It
has set up offices in
BSAMC posted a
significant growth in its revenue and profitability backed by improved asset
mix coupled with better expenses management. Revenue increased by 25% to
Rs.3660.000 millions and EBITDA grew by 53% to Rs.1300.000 millions. Earnings
before tax rose by 74% from Rs.730.000 millions to Rs.1260.000 millions.
BSAMC is serving a
large investor base of ~2.4 million through a strong distribution network of 103
branches and about 33,750 financial advisors. Live SIPs grew year on year by
33% to 0.4 million.
BSAMC has the
second highest number of funds in 4 and 5 star ratings across the industry
reflecting its strong investment performance.
Following awards and
recognitions were conferred to BSAMC at various forums:
·
"Best Debt Fund House of the year" –
Outlook Money
·
"Best Fund House – Runners up" – Outlook
Money
·
"The Asset Management Company of the year,
·
"Best Debt Fund House/Best Debt Fund " –
Wealth Forum AMC Awards
·
"Best Debt Fund Manager" – CNBC TV 18 –
CRISIL
·
"Birla Sun Life Capital Protection series 1-4
– Most innovative product –
Outlook
Amidst short term
challenges, the long term outlook for the mutual fund industry remains
positive, backed by growth drivers such as lower mutual fund penetration,
growing income levels and savings. Mutual fund AUM as a percentage of GDP has
grown in
Currently, only
~5% of household saving is invested in mutual funds. This augurs well for the
industry growth. Moreover, increasing focus of asset management companies on
the alternate assets such as PMS, real estate and offshore and efforts for
increasing retail participation through SIPs, etc., will also contribute to the
growth.
With a strong
focus on increasing equity and alternate assets, enhancing distribution reach
and productivity, improving customer service standards and delivering superior
fund performance, BSAMC is competitively well placed. Strong brand and award
winning investment performance further strengthens its position as one of the
leading players in the mutual fund industry.
NBFC (ADITYA BIRLA
FINANCE LIMITED)
Industry Overview
A robust banking
and financial sector is critical for financing and facilitating higher economic
growth. Financial intermediaries like Non-banking finance companies (“NBFCs”)
have a definite and very important role in the financial sector, particularly
in a developing economy like
During 2010-11,
RBI took monetary tightening measures to tame inflation which forced banks to raise
the lending rates. Rise in cost of borrowing led to contraction of net interest
margin (NIM) across the NBFCs.
Performance Review
After proactive
reduction of book size in 2008-09, as risk mitigation during slowdown in
financial markets, ABFL scaled its book size to about Rs.9000.000 millions in
March 2010. ABFL continued the growth momentum in 2010-11 and more than doubled
its book size to about Rs.18500.000 millions. The Capital Market portfolio
almost doubled to more than Rs.13250.000 millions. Corporate finance portfolio
grew almost five times to more than Rs.4250.000 millions. ABFL achieved highest
ever IPO financing of ~ Rs.50000.000 millions during the year. ABFL continued
to focus on leveraging Aditya Birla Group’s ecosystem to scale SME funding
segment.
Revenue of ABFL
more than doubled to Rs.1650.000 millions in line with its book-size and
further supported by highest ever IPO financing. Operating profit grew by 22%
to Rs.570.000 millions. Net interest margin reduced year on year due to rise in
cost of borrowings.
ABFL received a
capital infusion of Rs.2250.000 millions during the year. Its net worth has
increased to Rs.4970.000 millions from Rs.2350.000 millions a year ago.
ABFL’s long term
debt programme has been assigned ‘AA’ rating by the credit rating agency ICRA.
ABFL’s short term debt programme has been assigned a rating of ‘A1+’ – the
highest credit quality rating assigned by ICRA to short term debt instruments.
Outlook
The role of NBFCs
in creation of productive national assets cannot be undermined. A conducive and
enabling environment has been created for the NBFC industry globally, which has
helped it grow and become an essential part of the financial sector for
accelerated economic growth. Credit penetration in
ABFL aspires to be
a large NBFC and aims to expand its asset book by extending offerings besides
leveraging Aditya Birla Group’s large ecosystem for SME funding. ABFL is an
established player in all the product offerings and have seen more than two
decades of business cycle. Its goodwill and proven track record in security-based
lending will further support its growth.
PRIVATE EQUITY
(ADITYA BIRLA PRIVATE EQUITY)
Industry Overview
After witnessing
slow down in private equity (“PE”) investments during the calendar year 2009,
Performance Review
Aditya Birla
Private Equity (“ABPE”) successfully launched its maiden fund ‘Aditya Birla
Private Equity – Fund I’ focusing on domestic investors. The fund closed for
subscription in March 2010 at a size of ~USD 200 million (Rs.8810.000 millions)
including 20% sponsor’s commitment. In 2010-11, out of total corpus of
Rs.8810.000 millions, ~22% of the funds have been invested in four Indian
companies into different sectors. These companies are:
1.
Anupam Industries – a leading manufacturer of
industrial and construction cranes,
2.
3.
Credit Analysis and Research Limited – a leading
credit rating agency, and
4.
GEI Industrial Systems - a leader in heat transfer
technology for more than 40 years.
The fund has a
strong pipeline of deals to deploy the balance of the fund corpus.
ABPE has recently
launched its second domestic fund called “Sunrise Fund”. The fund aims at
investing in companies engaged in emerging sectors, viz., Lifestyle, Life
skills and Education, Life care and Applied Technologies. ABPE is targeting the
Aditya Birla
Capital Advisors Private Limited (“ABCAP”) provides the investment management
and advisory services to Aditya Birla Private Equity Trust, a venture capital
fund registered with SEBI. During 2010-11, ABCAP posted revenue of Rs.180.000
millions and net profit of Rs.40.000 millions.
Outlook
There is a huge
opportunity in the private equity space in
Aditya Birla
Private Equity is well positioned to tap this opportunity backed by strong
investment management team and salient parentage brand of Aditya Birla Group.
BROKING (ADITYA
BIRLA MONEY LIMITED)
Industry Overview
The Indian retail
broking industry is highly competitive and fragmented comprising of several
broking players with the top ten players contributing to only ~25% of equity
broking market size. The number of demat accounts in the country shows the
depth of equity penetration. Central Depository Services Limited. And National
Securities Depository Limited together have about 19 million active demat
accounts, registering a compounded annual growth rate of ~16% over a period of
past five years (2005-06 to 2010-11). Indian cash market and derivatives market
have grown at a CAGR of ~14% and ~43% in the past five years. Commodity volumes
have surged at a CAGR of ~41% during-past five years. However, during 2010-11,
Indian equity markets witnessed a volatile equity markets.
Sensex, the
benchmark index of BSE and S and P CNX
Nifty, the benchmark index of NSE, both rose by 11% during 2010-11 after
witnessing more than 70% rise in 2009-10. During the year, the cash segment
volumes of BSE de-grew by 20% to ~USD 245 billion. The cash segment volumes of
NSE de-grew by 14% to ~USD 795 billion; however, Futures and Options volumes
grew by 66% to ~USD 6.5 trillion marking a significant shift towards Futures
and Options (“F and O”) segment. F and O segment accounted for 86% of total
equity volumes at NSE and BSE combined vis-à-vis 76% in 2009-10. Due to
increasing contribution of lower margin F and O segment in total pie, earnings
of retail brokerage houses have impacted during the year. The combined
commodities volumes at MCX and NCDEX rose by 54% to ~USD 2.5 trillion.
Performance Review
Aditya Birla Money
(“ABML”) witnessed growth in commodity volumes while cash market volumes were
affected across the Industry. Cash market volumes of ABML de-grew by 34% while
commodity volumes rose by 82%. F and O volumes of ABML soared by 96%. F and O
volumes accounted for 86% of total equity volumes of ABML.
During the first half
of 2010-11, ABML’s revenue posted 23% year on year growth. Revenue growth was
impacted in the second half of the financial year due to discontinuance of a
product. On a full year basis, revenue remained flat at Rs.1140.000 millions
vis-à-vis Rs.1130.000 millions earned in 2009-10. EBITDA de-grew from
Rs.270.000 millions to Rs.50.000 millions due to investment in people and
infrastructure for supporting the future growth. ABML borne one-time
exceptional loss of Rs.8.000 millions during the second quarter of 2010-11 on
account of certain trades of its clients. ABML posted a net loss of Rs.3.000
millions (before one-time exceptional loss) compared to net profit of
Rs.130.000 millions attained in the preceding year.
During the year,
the number of customers increased by 13% to about 260,000. ABML expanded its
reach to 219 branches and more than 750 franchisees. It has set up a dedicated
research team to help its clients in making well informed decisions.
Outlook
Currently, only
~2% of Indian population holds demat accounts. Share of equity in household
financial savings in
Going forward,
ABML will focus on filling gaps in its geographical presence by expanding its
franchisee network, mainly in the northern and, the western regions. Its
emphasis will be on expanding its business through a cost-effective business
partner-based model. It will lay thrust on increasing its client base with a
focus on customer segmentation. Cost rationalization will also be a key focus
area for ABML.
WEALTH MANAGEMENT
AND DISTRIBUTION (ADITYA BIRLA MONEY MART LIMITED)
Industry Overview
While there are a few
large wealth management players in
During the
previous financial year 2009-10, SEBI abolished payment of entry load on all
mutual fund schemes w.e.f. 1st August, 2009. Further in 2010-11, IRDA through
new ULIP guidelines capped the charges w.e.f. 1st September, 2010 to
rationalise the ULIPs cost structure. To comply with the guidelines, life
insurance companies
issued new
products with reduced first year commission paid to corporate agents and
brokers on sale of ULIPs. As a result, ULIP sales were impacted across the
industry. During 2010-11, nonequity gross sales of mutual fund industry degrew
by 12% while equity gross sales grew by 7%. Equity cash broking volumes also
de-grew during the year. The margins of the mutual fund and life insurance
distribution players have remained under severe pressure since past two years.
Distribution players are revamping their business model by shifting from
transaction-based business model to advisory-based business model. They are
also focusing on expanding the
basket of services
by adding new offerings, viz., structured products, private equity, real
estate, etc.
Performance Review
To mitigate the
impact of these regulatory changes on earnings and to increase its customer
base, ABMM diversified its offerings and product portfolio. The new product
offerings include investment solutions such as private equity funds, Gold SIP,
alternative investments, structured products, real estate services, etc.
This has helped
ABMM to enhance its revenue from Rs.630.000 millions to Rs.730.000 millions
amidst de-growth in industry volumes across mutual fund, life insurance as well
as equity broking sectors. However, bottom-line was strained due to business
building costs, viz., investment in the people, process and technology –
related infrastructure. Besides, reduction in commission post-new ULIP
guidelines also impacted. ABMM borne one-time exceptional loss of Rs.960.000
millions during the second quarter of 2010-11 on account of certain trades of
its clients. ABMM posted a net loss of Rs.190.000 millions (before one-time
exceptional loss) compared to the net loss of Rs.120.000 millions incurred in
the preceding year.
ABMM is playing an
important role in distribution of financial products of Aditya Birla financial
services businesses. ABMM is the largest corporate agent for Birla Sun Life
Insurance, the largest mutual fund distributor for Birla Sun Life Asset
Management, largest distributor of Aditya Birla Private Equity and the largest
sourcing agent for capital market lending of Aditya Birla Finance.
ABMM has a strong
nation-wide distribution presence through 37 branches and ~14,500 channel
partners serving about 290,000 customers.
Outlook
High savings
growth in
professional
advisors portrays a positive outlook for the wealth management sector in the
longer run.
ABMM’s thrust will
be to provide quality wealth management solutions to its client through product
innovation and technology support. It will also focus on diversification of its
product portfolio besides deriving synergies with other Aditya Birla Financial
Services verticals. ABMM is ideally equipped to progress in the challenging
business
environment as a
multi-product and multi-channel distributor with a realigned business model.
GENERAL INSURANCE
ADVISORY (ADITYA BIRLA INSURANCE BROKERS LIMITED)
Industry Overview
The general
insurance industry grew year on year by 22% to USD 9.5 billion in terms of
premium underwritten. Aditya Birla Insurance Brokers Limited. (ABIBL),
erstwhile Birla Insurance Advisory and Broking Services Limited, is one of the
leading general insurance brokers in
Performance Review
The premium
placement by ABIBL marginally de-grew from Rs.2140.000 millions to Rs.2050.000
millions. Revenue remained flat at
Rs.210.000 millions. Net Profit de-grew from Rs.40.000 millions to Rs.20.000
millions due to increase in manpower and other operating costs.
Outlook
Lower general
insurance penetration in
TELECOM (IDEA
CELLULAR LIMITED)
Industry Overview
During the past
two years, the number of cellular operators in
reach USD 26.6
billion in 2010-11.
Top 3 cellular
operators contribute to ~65% of total gross revenue of Indian wireless sector.
The financial year
2010-11 was very eventful for Indian telecom industry. In April 2010, auctions
for third generation (3G) spectrum commenced and ended in May 2010 after 34
days of intense bidding. Against reserve price of Rs.35000.000 millions for pan
Mobile Number
Portability (“MNP”) was initiated in Haryana in November 2010 and was
implemented pan
Performance Review
With total Minutes
on Network of more than 1 billion per day, Idea Cellular (“Idea”) is among the
top 10 cellular operators in the world. In
However,
hyper-competition kept tariff under pressure across the industry. Idea’s
average revenue per minute (“ARPM”) has de-grown from Rs.0.47 in the fourth
quarter of 2009-10 to Rs.0.41 in the fourth quarter of 2010-11.
During 2010-11,
revenue of Idea rose by 25% to Rs.154380.000 millions driven by a
strong growth in the total minutes on network while ARPM declined by around 20%
year on year. EBITDA grew by 6% to Rs.38530.000 millions. The decline in
average revenue per minute was compensated by volumeled cost efficiencies.
Depreciation rose by 19% to Rs.23970.000 millions in line with
capacity expansion. Net profit de-grew by 6% to Rs.8990.000 millions.
Idea won 3G
spectrum in 11 service areas, which cover more than 48% of industry’s current
2G revenue and contribute to over 76% of Idea’s existing 2G revenue. Idea made
a total payment of Rs.57690.000 millions, which is lowest
among major operators. In the end of March 2011, Idea had started launching 3G
services. Currently Idea offers 3G services in 19 service areas which includes
provision of 3G services through bilateral roaming arrangement with leading
quality operators for 10 service areas.
Idea’s 2G
operations are competitively very well placed. Idea ranks 1st in four service
areas, viz., Kerala, Maharashtra, Madhya Pradesh and Uttar Pradesh (West);
ranks 2nd in three service areas, namely; Haryana, Punjab and Andhra Pradesh,
and ranks 3rd in Gujarat. Idea won 3G spectrum in all these strategically
important service areas. The incumbency advantage, coupled with the benefit of
900 MHz spectrum in these 8 established
service areas,
gives a combined revenue market share of 23.6% to Idea making it the second
largest operator in these service areas put together. Idea is also emerging as
a strong operator in the service areas of Uttar Pradesh
East, Rajasthan
(Ranks 3rd),
Idea has always
been vigilant in monitoring the quality of its subscriber base. Idea is leader
in terms of ratio of VLR subscriber (active subscribers) to reported
subscribers. As of 30th June 2011, Idea has over 92.5% of reported subscribers
as VLR subscribers, which is highest in the industry. Idea’s VLR subscriber
market share is 14.9% as against a subscriber market share of 11.2%.
The trends
emerging from MNP are clearly distinguishing the strong operators in terms of
customers’ preference for better quality of services and perception of brand
value. Currently, Idea leads the industry in terms of net subscriber additions
from MNP activity, reflecting the brand strength and the market power enjoyed
by the
Company.
Idea incurred a
capex of about Rs.32000.000 millions during the year
(excluding 3G spectrum fees and interest thereon). For 2011-12, the capex
guidance for Idea stands at Rs.40000.000 millions.
With net debt to
EBITDA at 2.7 and net debt to equity at 0.9 as on 31st March, 2011, Idea has a
strong balance sheet. This coupled with strong internal cash accruals will
support its future growth.
Outlook
Prospects of the
Indian telecom industry looks positive in the light of lower tele-density and lower
penetration of value added services. With the roll out of 3G operations, usage
of value added services is expected to increase multi-fold.
Idea will continue
to increase its revenue market share by capitalizing on brand !DEA. Leveraging
3G spectrum to augment revenue stream and enrich customer experience will be a
key focus area besides investing in customer service and network quality to
enhance competitiveness. Idea is one of the few companies in the world, which
is able to run high quality telecom services at the world’s lowest price
points, and yet extract stable cash profits. Supported by a quality
subscribers’ base and strong brand, Idea is poised to benefit from long term
sector opportunities, once this overcapacity phase draws to its inevitable
close.
FASHION AND
LIFESTYLE (MADURA FASHION AND LIFESTYLE)
Industry Overview
The branded
apparel market in
The Industry was
impacted by the continuous increase in the prices of key inputs like Cotton,
Polyester and Viscose. Cotton prices increased by 167% over the previous year
while Polyester and Viscose prices rose by 67% and 29% respectively. With
effect from 1st March 2011, a 10% excise duty (effective 6% duty after 40%
abatement) was levied on branded garments. Later on 22nd March, 2011, relief
was provided to the industry by increasing the abatement to 55% taking down the
effective levy of excise duty to 4.5%. The apparel industry raised prices in
the last quarter of 2010-11 to pass on levy of excise duty and rising input
costs.
Performance Review
Madura Fashion and
Lifestyle (“Madura”) is the largest premium branded apparel player in
as the destination
store in the country for super premium and luxury brands with its world class
retail experience. Madura also has a strategic distribution tie up with leading
international brand Esprit.
Independent Brand
Track studies continue to rank the Madura Brands among the Top Apparel Brands
in the country.
Madura sells one
branded apparel every two seconds serving varied fashion and lifestyle needs of
customers through its retail and wholesale channel. Retail channel comprises of
about 950 EBOs spanning across about 1.4 million square feet and contributes
about 45% of the total business revenue. Wholesale channel consists of more
than 1,250 Multi Brand Outlets and departmental stores viz., Shoppers Stop,
Lifestyle, Pantaloons, Central etc.
Investment in
product, brand building and planned expansion of retail channel has supported
Madura Fashion and Lifestyle to significantly outperform the market. Madura
achieved 45% year on year growth in revenue supported by 28% growth in branded
garments volumes. Driven by strong sales growth across the brands and channels,
Madura crossed USD 400 million in revenue.
Sales in the
retail channel grew by 50% supported by robust growth in like to like stores
sales and stores expansion. Like to
like stores sales from major brands (Louis Philippe, Van Heusen, Allen Solly
and Peter England) grew by more than 30%. During the year, Madura added about
250 Exclusive Brand Outlets (EBOs) to expand its retail presence.
The business
posted strong turnaround in bottomline in the consecutive second year. While in
2009-10, turnaround was largely driven by cost rationalisation efforts,
turnaround in 2010-11 was led by top-line growth. Madura posted an EBITDA of
Rs.1370.000 millions vis-a-vis loss of Rs.40.000 millions in the previous year.
Return on capital
employed has also improved supported by enhanced earnings and better working
capital management.
Outlook
Going forward, in the
short term, industry may witness moderate growth on account of three reasons.
Firstly, high inflation is putting pressure on discretionary spends. Secondly,
excise duty has been levied on branded garments. And thirdly, prices of cotton,
a key raw material, increased dramatically in the second half of 2010-11.
Branded apparel players are expected to further increase the apparel prices for
passing on the rise in cotton prices and levy of excise duty during the
financial year 2011-12. However, industry players will have to be cautious
while increasing the apparel prices amidst high inflation as this may impact
the overall demand and industry’s volume growth going forward. The long term
outlook for domestic apparel industry remains positive on the back of favourable
demographics viz., rising disposable income, burgeoning aspiring middle class
segment, large young population etc. Increasing population shift towards
branded apparel with the rise in income levels will also
be a key growth
driver.
Madura Fashion and
Lifestyle will continue to leverage its brand leadership and pursue channel and
geographic expansion with a target of outperforming the market and competition.
Madura is targeting to open about 200 stores during 2011-12 to tap domestic
demand. Product innovation, retail excellence and improving service levels will
be the key focus areas for Madura in the direction of differentiating itself
from the competition. Mitigating impact of rise in costs through appropriate
pricing and product strategy will also be a key focus area.
IT — ITES (ADITYA
BIRLA MINACS WORLDWIDE LIMITED)
Industry Overview
The global
economic downturn of the past years has had a prolonged effect on GDP growth
and employment in the developed markets. There is still uncertainty in the sustainability
of growth in the
thereby evolving
from playing tactical vendor role to being of strategic benefit to clients.
Performance Review
With a track
record of over 29 years, Aditya Birla Minacs is a leading business solutions
company that partners with global corporations in the manufacturing, retail,
telecom, technology, media and entertainment, banking, insurance, healthcare
and public sectors. Leveraging its years of process, domain and technology
expertise, Aditya Birla Minacs delivers superior business value to clients
through its seamless Customer Lifecycle,
Marketing, Finance and Accounting, Procurement and IT solutions and
services.
Aditya Birla
Minacs ranks among the top 10 Indian ITeS companies by revenue size. Having
global delivery capabilities across the
Revenue grew year
on year by 11% to Rs.16920.000 millions (USD 375 million)
driven by a strong order book. Growth picked up in the second half of the year
with the conversion of total contract value (“TCV”) sold. Aditya Birla Minacs
sold TCV of more than USD 775 million during 2010-11 vis-à-vis USD 600 million
sold in 2009-10. About 55% of the TCV sold in 2010-11 is on account of new
business and the balance is renewal business. Aditya Birla Minacs won 21 new
clients during the year. More than 4,000 employees were added to support the
growth.
The
EBITDA grew year
on year by 75% to Rs.1830.000 millions. EBITDA margin improved from 7% to 11%.
The business posted a net profit of Rs.740.000 millions vis-à-vis a net loss of
Rs.130.000 millions last year.
The business
achieved significant improvement in the profitability for the second
consecutive year. While in 2009-10, improvement was largely driven by cost
rationalisation measures. in 2010-11, revenue growth coupled with a
rationalised cost structure and savings in interest contributed to the
improvement in profitability.
In the direction of
augmenting non-voice capabilities in the ITeS business, Aditya Birla Minacs
acquired Bureau of Collection Recovery (“BCR”), a leading US based accounts
receivables management company in June 2010. BCR has 25 years of domain
expertise in the
RESTRUCTURING OF
THE IT-ITES BUSINESS
In order to
achieve utmost synergy and efficiency of operations and management, the ITeS
subsidiary - Aditya Birla Minacs Worldwide Limited has filed a Composite Scheme
of Amalgamation, amongst itself and the IT subsidiaries - Aditya Birla Minacs
IT Services Limited and Aditya Birla Minacs Technologies Limited, which is
currently pending at Hon’ble High Court at Karnataka.
Outlook
Global IT-ITeS
spending will benefit from the ongoing recovery in developed economies while
emerging economies are beginning to join the outsourcing market. Increased
outsourcing, even in low cost economies, is a testimony that clients prefer to
outsource what is not core, i.e., not vital to their business and are looking
at vendors for their specialised domain and process expertise - not just for
cost benefits. Demand for ‘transformative’ value propositions that go beyond merely
lower-cost propositions are on a rise. Long term outlook for the IT-ITeS sector
continues to remain positive. Key factors that will fuel growth of IT-ITeS
sector globally are –
·
Tight fiscal and monetary conditions in the medium
term are causing enterprises to look at ways to increasing agility and resource
productivity
·
Inherent need of clients to rationalise costs and
become “asset-light”
·
Increased focus on providing high end services and
moving up the value chain as clients look to outsource more and more of what
they earlier considered “core”.
Aditya Birla
Minacs will continue to exceed customers’ expectations with a sharp and clear
focus on excellence in execution. It continues to lay thrust on achieving
profitable growth by building a robust sales pipeline, improving capacity
utilisation and continuous cost optimisation. Its global footprint, its
capabilities in multiple industry verticals, its culturally diverse and
knowledgeable workforce, and its partnership model that works to drive its
clients’ business results, are strategic assets which it will leverage in the
emerging global market.
MANUFACTURING
BUSINESSES
Aditya Birla Nuvo
has a strong market positioning across its manufacturing businesses viz.,
Carbon Black, Agri-business, Insulators, Rayon and Textiles. All the
manufacturing businesses are among the leaders in their respective sectors in
terms of size as well as profitability. Aditya Birla Nuvo is:
·
The second largest producer of Carbon Black in
·
·
The second largest producer and largest exporter of
Viscose Filament Yarn in
·
Among the best energy efficient Fertiliser plants
in
·
The largest Linen Yarn and Linen Fabric
manufacturer in
They have an
outstanding track record of consistent generation of strong cash flows as well as
superior operating margins (“OPM”) and return on average capital employed
(“ROACE”). Cash flows generated by these manufacturing businesses have
historically provided cushion to Aditya Birla Nuvo for meeting the funding
requirements of services businesses. At the same time, ABNL continued to invest
in the capacity expansion of the manufacturing businesses to tap growth
opportunities across the sectors.
Having a combined
revenue size of more than USD 1 billion, the manufacturing businesses posted
the highest ever EBITDA in 2010-11 at Rs.7810.000 millions vis-à-vis
Rs.7410.000 millions earned in the previous year.
CARBON BLACK
(HI-TECH CARBON)
Industry Overview
Carbon Black is a
black powder which is used to provide tensile strength and abrasion resistance
to rubber. Carbon Black is used in the tyre industry as well as in the non-tyre
sector as reinforcing filler in rubber products and in the printing inks and
paints industry. Carbon Black constitutes ~28% of tyre by weight. The demand
for carbon black is largely linked to
the demand of the auto and tyre sector. The tyre industry accounts for about
70% of carbon black demand in
2011 while Hi-Tech
Carbon (“HTC”), the carbon black business of ABNL, expanded its capacity by
84,000 MTPA in May 2010 through
Performance Review
Hi-Tech Carbon,
the second largest manufacturer in
HTC commissioned
its third plant with a capacity of 84,000 MT at Patalganga in May 2010 taking
the total Carbon Black production capacity from 230,000 MTPA to 314,000 MTPA. A
23 MW power plant was set up at Patalganga and a 10 MW power plant at Renukoot
taking total power plant installed capacity from 40 MW to 73 MW.
EBITDA grew from
Rs.2530.000 millions to Rs.2580.000 millions supported by higher carbon black
volumes and rise in energy sales. Revenue from sale of power and steam grew
from Rs.730.000 millions to Rs.800.000 millions. Growth in profitability during
2010-11 was partly constrained by stabilisation costs of recently expanded
capacity. Besides, during part of the previous year 2009-10, business had
benefited from low cost inventory. HTC posted return on average capital
employed (“ROACE”) at 20% vis-à-vis 27% in the previous year. Capital employed
increased mainly due to rise in working capital and fixed assets on account of
expanded capacity which is now operating at full capacity.
Hi-Tech Carbon is
planning to augment its capacity further by 85,000 MTPA at Patalganga in the
second phase besides 85,000 MTPA expansion in the southern
Outlook
The domestic tyre
demand is expected to grow at a CAGR of 10-12% over 2010-11 to 2015-16.
Domestic tyre production is expected to get a boost from the high OEM and
replacement demand from the tyre and automobile industry. Furthermore, a number
of international car makers are increasingly focusing on the Indian automobile
industry and
ramping up investment. In view of this, a number of tyre manufacturers have
line up capacity expansion plan in the near future, which will benefit the
domestic carbon black industry.
With its planned
170,000 MT capacity expansion, Hi-tech Carbon is well positioned to tap the
demand growth and improve its market share.
AGRI-BUSINESS
(INDO-GULF FERTILISERS)
Industry Overview
Agriculture sector
grew by a strong 6.6% during 2010-11, aided by the low base in 2009-10 due to
poor monsoons. This has given a good boost to the demand for agri inputs –
fertilisers, seeds and agrochemicals. Urea accounted for 53% of total
fertilisers demand in
fertilizers has
been well received by all the stakeholders and has ensured better availability
of these fertilizers. The industry is now awaiting the extension of this NBS
scheme to Urea. The Government is laying thrust on development of customized
fertilizers and coated / fortified fertilizers. As a first step the limit on
production
of coated /
fortified fertilizers has been increased from 20% to 35% w.e.f. 11th January
2011. This has enabled the industry to increase the volumes of valued added
products.
Performance Review
Indo Gulf
Fertilizers (“IGF”), the agri-business of ABNL, manufactures urea and markets
agricultural seeds and agrochemicals to provide complete agri solutions to
farmers. IGF is among the top 10 fertilizers manufacturer in
Revenue grew by
22% to Rs.12440.000 millions led by increase in realisation (subsidy) and
higher agri-input sales. Rise in feed and fuel (natural gas) prices resulted in
higher subsidies. Revenue from agri-input sales grew from Rs.530.000 millions
to Rs.790.000 millions. EBITDA grew by 13% to Rs.1760.000 millions driven by
higher agri-input sales. IGF is operating at a robust ROACE of 39% up from 31%
in the previous year.
‘Birla Shaktiman’
Urea continues to maintain its leadership position among the private players in
the target markets of Uttar Pradesh, Bihar, Jharkhand and West Bengal with a
market share between 10%-20% IGF has increased the production of ‘Neem coated’
urea from 219,621 tons to 260,785 tons, the maximum allowable as per the
Government policy. Neem coated urea fetches higher realization by about 5%.
‘Birla Shaktiman’
has been repositioned as a ‘total agri solutions provider’, offering a full
range of agri- inputs from sowing to harvesting. Sales of the hybrid seeds, the
agrochemicals and micro nutrients have received encouraging response from
farmers, reflecting the strength of IGF’s brand equity and channel reach. IGF
was awarded the ‘Agriculture Today Leadership Award’ for the pioneering efforts
in the application of six sigma
principles in
agricultural fields.
Outlook
The per hectare
consumption of fertilizers in nutrient terms has increased from 112 Kg. In
2006-07 to 135 Kg. in 2009-10 but it is still lower as compared to other
countries like
IGF is evaluating
de-bottlenecking and revamping of existing ammonia and urea plants for reducing
the energy consumption and increasing the production capacity. It is also
evaluating viability of setting up a manufacturing facility for producing the
customized fertilizers. IGF has a unique geographical advantage of being based
in the Indo-gangetic plains. With a strong brand equity and market reach, it is
well positioned to capture an increasing share of this growing market.
The Government is
planning to bring urea under Nutrient based subsidy policy. This coupled with
proposal to lift the ceiling on production of neem coated urea (currently
capped at 35% of total production) will benefit the business.
TEXTILES (JAYA
SHREE TEXTILES)
Industry Overview
Domestic textiles industry
posted encouraging performance during the year in terms of volume growth and
profitability. The growth was driven by increased demand from overseas buyers
with Chinese imports becoming more expensive coupled with robust demand in the
domestic apparel market. Rising income and positive consumer sentiments led to
robust demand in the domestic market. Sourcing by overseas players is shifting
to
the rise in inputs
costs to the customers.
Performance Review
Jaya Shree
Textiles (“JST”) is the largest manufacturer of linen yarn and linen fabric in
JST posted its
highest ever revenue and EBITDA during the year led by volume growth in the
linen segment and improved realisation in both linen and wool segments. Its
efforts for increasing awareness about linen in the domestic market and
creating a wide distribution channel of whole sellers, multi brand outlets and
EBOs are yielding results. Its Linen fabric sales volume grew by 45% and Linen
yarn by 28%. Revenue of linen segment grew by 40% to Rs.3010.000 millions while
wool segment revenue grew by 31% to Rs.4730.000 millions. Increase in input
costs was passed on to reflect in higher realisation in both the segments.
EBITDA soared by
48% from Rs.690.000 millions to Rs.1030.000 millions driven by improved
realisation and volume growth. ROACE improved considerably to 34% driven by
improved earnings and better working capital management.
Eight EBOs of
Linen Fabric were rolled out under the buy and sell mode without incurring any
capital expenditure taking such stores count to a total of 40.
Outlook
The outlook for
the textiles business remains positive. Buoyancy in the domestic market will
continue to be driven by factors like rising disposable income levels and
gaining popularity of linen as a style and comfort fabric.
JST will continue
to focus on more profitable retail segment, enriched product mix, improved
supply chain management and judicious working capital management for earnings
enhancement. Addition of more exclusive showrooms for Linen Fabric is on cards.
RAYON (INDIAN
RAYON)
Industry Overview
Indian Rayon, a
unit of ABNL, manufactures and sells viscose filament yarn, caustic soda and
allied chemicals. Viscose filament yarn (“VFY”) is a manmade natural filament
yarn having comfort of cotton and luster of silk. It is used in georgette and
crepe saris, home textiles, embroidery etc. Domestic consumption of VFY
remained flat at
56,364 MT in
2010-11. Domestic VFY production declined by 4% to 40,890 MT while imports
increased by 2%. VFY exports grew by 2% to 5466 MT. Century Textiles and
Industries Limited and Indian Rayon are leading domestic VFY manufacturers
having production share of 44% and 38% respectively. During 2010-11, VFY
players were impacted by a sharp rise in prices of wood pulp, a key raw
material. Imported rayon grade wood-pulp prices increased from USD 1,600 per MT
in April 2010 to USD 3,000 per MT in April 2011. However, wood pulp prices are
gradually coming down from the peak. VFY prices were increased by the industry
players with a time lag to pass on the rise in input cost.
Caustic Soda is a
versatile alkali. Its main uses are in the manufacture of pulp and paper,
alumina, soaps and detergents, petroleum products and chemical production.
Other applications include water treatment, food, textiles, metal processing,
mining, glass making etc. Domestic caustic soda demand grew during the year on
account of better off-take from Alumina, Paper and Textiles segments.
Performance Review
Revenue from the
VFY segment of Indian Rayon grew by 4% to Rs.3840.000 millions. VFY realization
increased by 10% to Rs.246 per kg while VFY sales volumes de-grew by 6% to
15,592
EBITDA de-grew
from Rs.1550.000 millions to Rs.1090.0000 millions.
During the year, 6
new spinning machines were installed taking total VFY capacity from 16,400 TPA
to 17,520 TPA. Indian Rayon is planning to expand its presence in fine and
superfine VFY segment using Spool Technology from
Indian Rayon is
expanding its caustic soda capacity by 45,625 MTPA at a capex of Rs.1550.000
millions. The capacity is targeted to be completed in 2012-13, taking the total
capacity to 136,875 MTPA.
Outlook
Outlook for VFY
business seems to remain stable with demand growth expected to be moderate. Demand
for caustic soda is expected to grow with expansion planned in user segments.
With the planned
VFY capacity expansion, Indian Rayon is focusing on technology up-gradation to
improve product quality and enhance product range. This will help to cater to
premium segments and to improve realisation. Enhanced product range and
improvement in quality will also help to broaden customer’s base. With the
planned caustic soda capacity expansion, Indian Rayon is well positioned to tap
growth in caustic soda demand.
INSULATORS (ADITYA
BIRLA INSULATORS)
Industry Overview
Insulators are
used in power generation, transmission and distribution and by original
equipment manufacturers. The growth of insulators industry is linked to the
growth of the power sector. The power sector added about 12,000 MW of generation capacity in 2010-11.
This is 56% of the targeted capacity addition in 2010-11 and 27% higher than
capacity added in the previous year. The power sector also added about 15,000
circuit kms of transmission line. This is 82% of the targeted addition and more
than three times of lines added in the previous year. Domestic insulators
Industry faced pressure on realisation particularly in the substation segment
due to increased competition. Industry also witnessed delay in execution of
projects.
Performance Review
Aditya Birla
Insulators, the insulators business of the Company, is
Domestic sales
volume grew by 21% while exports grew by 10%. Realisation in the substation
segment remained under pressure due to overcapacity while realisation in
transmission segment increased in line with rise in input and fuel costs.
Revenue grew year on year by 21% to Rs.5180.000 millions.
EBITDA rose by 17%
from Rs.1160.000 millions to Rs.1350.000 millions. Higher volumes and improved
yield was
partly set off by
increase in input and fuel costs. Aditya Birla Insulators is operating at a
robust ROACE of 35%.
Aditya Birla
Insulators is planning to expand its capacity by 2,000 MW through de-bottlenecking
at a cost of Rs.190.000 millions at Halol Plant.
Outlook
Per capita
consumption of electricity is 700 Kwh which is about one-fourth of the global
average. Power generation capacity addition in 11th five year plan (2007-12) is expected to be
2.7 times of capacity added during 10th five year plan. During 12th five year
plan (2012-17), target is to add 100,000 MW of power capacity addition. The
robust demand is on the back of
To capitalise on
the vibrant demand in the power infrastructure sector, Aditya Birla Insulators
will focus on improving yield, augmenting product mix and capacity expansion
through debottlenecking.
UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH
SEPTEMBER 2011
(Rs. in millions)
|
Particulars |
quarter Ended
30.09.2011 (Unaudited) |
year to Date
Ended 30.09.2011 (Unaudited) |
|
Net Sales |
20067.900 |
38212.800 |
|
Other Operating Income |
454.800 |
949.200 |
|
Net Income from
Operations |
20522.700 |
39162.00 |
|
Expenditure |
|
|
|
(Increase)/decrease in stock in trade and work-in
Progress |
(1249.100) |
(1616.100) |
|
Consumption of raw materials |
9883.000 |
1939.600 |
|
Purchase of Traded Goods |
2832.900 |
4044.600 |
|
Employee Cost |
1420.300 |
2686.700 |
|
Depreciation |
512.700 |
1010.600 |
|
Power And Fuel |
1849.200 |
3524.000 |
|
Other Expenditure |
3344.900 |
6383.000 |
|
Total Expenditure |
18593.900 |
35428.800 |
|
Profit from Operations before Other Income and
Interest |
1928.800 |
3733.200 |
|
Other Income |
151.600 |
318.700 |
|
Profit Before Interest |
2080.400 |
4051.900 |
|
Interest |
815.500 |
1526.400 |
|
Profit before Tax |
1264.900 |
2525.500 |
|
Tax Expenses |
345.500 |
664.400 |
|
Net Profit for the period |
919.400 |
1861.100 |
|
Paid- up
Equity Share Capital (Face value
of the share – Rs. 10) |
1135.100 |
1135.100 |
|
Reserves excluding
revaluation reserves (as per last audited balance sheet) |
---- |
---- |
|
Basic
Earnings per share |
8.10 |
16.40 |
|
Diluted
Earnings per share |
8.09 |
16.38 |
|
Public
shareholding |
|
|
|
Number of
Shares |
-- |
52342372 |
|
Percentage of Shareholding |
-- |
46.11% |
|
Promoters and
promoter group shareholding |
|
|
|
Non -
encumbered Number of
Shares Percentage of
Shares (as a % of
the total shareholding of promoter and promoter group) Percentage of
Shares (as a % of the
total share capital of the company) |
-- -- -- |
47444697 100.00% 51.05% |
UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH
SEPTEMBER 2011
(Rs. in millions)
|
Sl. No. |
|
Particulars |
Quarter Ended |
Year to Date Ended |
|
|
30.09.2011 |
30.09.2011 |
||
|
|
(Un-audited) |
(Un-audited) |
||
|
1 |
|
Segment Revenue
(Net of Excise & Other Taxes) |
|
|
|
|
|
Fashion & Lifestyle (Garments & Accessories) |
5834.900 |
10563.100 |
|
|
|
Carbon Black |
4683.200 |
9809.400 |
|
|
|
Agri - business (Fertilisers, Seeds & Pesticides) |
4502.100 |
8012.900 |
|
|
|
Rayon Yarn (Including Caustic & Allied Chemicals) |
1720.900 |
3283.600 |
|
|
|
Insulators |
1176.700 |
2281.600 |
|
|
|
Textiles (Spun Yarn & Fabrics) |
2609.200 |
5221.000 |
|
|
|
|
|
|
|
|
|
Total |
20527.000 |
39171.600 |
|
|
|
Less : Inter Segment Revenue (Net of Excise) |
(4.300) |
(5.500) |
|
|
|
|
|
|
|
|
|
Net Sales / Income
from Operation |
20522.700 |
39162.000 |
|
|
|
|
|
|
|
2 |
|
Segment Results
(Net Profit(+)/Loss(-) before Tax & Interest from each Segment) |
|
|
|
|
|
Fashion & Lifestyle (Garments & Accessories) |
451.900 |
583.900 |
|
|
|
Carbon Black |
406.600 |
979.800 |
|
|
|
Agri - business (Fertilisers, Seeds & Pesticides) |
522.500 |
911.700 |
|
|
|
Rayon Yarn (Including Caustic & Allied Chemicals) |
174.400 |
386.400 |
|
|
|
Insulators |
141.700 |
331.900 |
|
|
|
Textiles (Spun Yarn & Fabrics) |
318.000 |
689.500 |
|
|
|
|
|
|
|
|
|
Total |
2015.100 |
3883.200 |
|
|
|
Less :Interest & Finance Expenses |
(815.500) |
(1526.400) |
|
|
|
Add: Interest Income |
41.100 |
175.200 |
|
|
|
Add: Net of Unallocable Income |
24.200 |
(6.500) |
|
|
|
|
|
|
|
|
|
Profit Before Tax |
1264.900 |
2525.500 |
|
|
|
|
|
|
|
3 |
|
Capital Employed
(Segment Assets - Segment Liabilities) |
|
|
|
|
|
Fashion & Lifestyle (Garments & Accessories) |
-- |
5539.400 |
|
|
|
Carbon Black |
-- |
14987.000 |
|
|
|
Agri - business (Fertilisers, Seeds & Pesticides) |
-- |
6459.400 |
|
|
|
Rayon Yarn (Including Caustic & Allied Chemicals) |
-- |
4879.300 |
|
|
|
Insulators |
-- |
4044.600 |
|
|
|
Textiles (Spun Yarn & Fabrics) |
-- |
1840.600 |
|
|
|
|
|
|
|
|
|
Total |
-- |
37750.300 |
|
|
|
|
|
|
|
|
|
Add: Unallocated
Corporate Assets |
-- |
58479.000 |
|
|
|
|
|
|
|
|
|
Total |
-- |
96229.300 |
Notes:
|
1. STATEMENT OF ASSETS AND LIABILITIES |
30.09.2011
UNAUDITED |
|
SHAREHOLDERS FUNDS |
|
|
Equity Share Capital |
1135.100 |
|
Preference Share Capital |
1.000 |
|
Employee Stock Options Outstanding |
42.100 |
|
Reserve and Surplus |
54691.200 |
|
|
|
|
LOAN FUNDS |
40997.700 |
|
DEFERRED TAX LIABILITIES |
1820.900 |
|
|
|
|
TOTAL |
98688.000 |
|
|
|
|
FIXED ASSETS [Net Block] |
18885.500 |
|
INVESTMENT |
55783.100 |
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
Inventories |
15330.100 |
|
Sundry Debtors |
15163.600 |
|
Cash & Bank Balances |
2976.800 |
|
Other Current Assets |
99.900 |
|
Loans & Advances |
8877.500 |
|
Total Current
Assets |
42447.900 |
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
Current Liabilities |
16697.500 |
|
Provisions |
1431.000 |
|
Total Current
Liabilities |
18128.500 |
|
Net Current
Assets |
24019.400 |
|
|
|
|
TOTAL |
98688.000 |
FIXED ASSETS
Tangible Assets
·
Land
o
Freehold
o
Leasehold
·
Railway Siding
·
Buildings
o
Freehold
o
Leasehold
·
Leasehold Improvements
·
Plant and Machinery
·
Furniture, Fixtures and Equipment
·
Vehicles and Aircraft
·
Livestock
Intangible Assets
·
Goodwill
·
Trademark / Brands / Technical Know-how
·
Specialised Software
WEB DETAILS
BUSINESS
DESCRIPTION
Subject is an India-based conglomerate. The Company has a portfolio of
manufacturing, as well as service sector businesses. The Company operates in
seven business segments: garments, rayon yarn, carbon black, insulator,
textiles, fertilizers and financial services. The garments segment includes
branded apparels, accessories and contract exports. The rayon segment includes
viscose filament yarn, caustic soda and allied chemicals. The textiles segment
includes spun yarn and fabrics. The fertilizers segment includes urea, ammonia,
argon gas, pesticides and seeds. The financial services segment includes
corporate finance, syndication and distribution. The subsidiary of the Company
is Aditya Birla Financial Services Private Limited, Aditya Birla Capital
Advisors Private Limited, Aditya Birla Customers Services Private Limited,
Aditya Birla Securities Private Limited, Aditya Birla Trustee Company Private
Limited and Aditya Birla Financial Shared Services Limited. For the nine months
ended 31 December 2010, Subject's revenues decreased 1% to Rs.149.34B. Net
income totaled Rs.5.29B, vs. loss of Rs.256.6M. Revenues reflect an decrease in
income from operation. Net income reflects a decrease in interest and finance
expenses and higher gross operating margins. Subject is an India-based
conglomerate. The company has a portfolio of manufacturing as well as service
sector businesses.
BOARD OF DIRECTORS
MR. B. R. GUPTA -
NON-EXECUTIVE INDEPENDENT DIRECTOR
Mr. B. R. Gupta is Non-Executive Independent
Director of company. He is an Executive Director (Investments) of Life
Insurance Corporation of
MR. GIAN PRAKASH
GUPTA - NON-EXECUTIVE INDEPENDENT DIRECTOR
Mr. G.P. Gupta is Non-Executive Independent
Director of company. He is Chairman of Industrial Development Bank of
Education
M Commerce,
MR. P. MURARI -
NON-EXECUTIVE INDEPENDENT DIRECTOR
Mr. P. Murari is Non-Executive Independent Director
of company. He served as Secretary to the President of India before retiring
from service in September 1992. He has held several key positions in various
institutions and professional bodies.
MS. TARJANI VAKIL
- NON-EXECUTIVE INDEPENDENT DIRECTOR
Ms. Tarjani Vakil is Independent Director of
company. She is Chairperson and Managing Director of Exim Bank.
Education
M Art,
NEWS
PRESS RELEASE
LOUIS PHILIPPE
LAUNCHES ITS LARGEST RETAIL STORE IN
Chennai: The Louis Philippe story began in the mid-1960s in the
Louis Philippe has consistently established the mark of grandeur for the
contemporary Indian gentleman. It has enhanced its product portfolio to cater
to the multi-faceted needs of its consumers and in its current avatar offers
shirts, suits, trousers, t-shirts, denims and accessories for every conceivable
occasion. The brand offers the finest range of high-quality apparel and its
stores have been designed to help our consumers make their fashion choices in
the most enjoyable environment.
The Louis Philippe store brings forth world-class ambience to showcase Luxure,
Louis Philippe and LP Louis Philippe. The façade and interiors reflect the
sophistication, elegance and grandeur that are the pillars of the brand
structure. In light pinewood setting, the look and feel of LP Louis Philippe is
youthful and fresh with a dash of royal elegance. The dark walnut section
surrounded in leather and luxurious leather carpets provides an opulent and
plush backdrop for Luxure. The space is decorated with artifacts showcasing the
inspirations and the lifestyle of a contemporary, discerning man reflecting a
specific point of view.
The hero of the store is its merchandise. The fixture arrangement and the
lighting has been done to ensure that they bring forth the design and style
elements. Store personnel of the House of Louis Philippe are groomed to be
style advisors to all the consumers. It is the staff's endeavour to pamper him
for choice and create a personalised ensemble for each customer.
Louis Philippe now launches its largest exclusive brand outlet at Annanagar in
Chennai. With 10,000 sq ft of ample space, the store ambience includes perfect
music, lighting, temperature and even in-store fragrance. Louis Philippe
beautifully weaves together the finest fabric from across the world with designs
in tune with the latest fashion trends, and is a permanent fixture in the
wardrobes of those who like to be dressed in nothing but the best.
The contemporary signature look is conceptualised by a group of ace designers
from
Luxure from the House of Louis Philippe
A tribute to Art Nouveau roots, Louis Philippe presents to the discerning
gentleman its piece de resistance – Luxure. In the pursuit of delivering
sartorial excellence to the true connoisseur, Luxure sublimely blends exquisite
craftsmanship and majestic materials with lavish perfection – every stitch,
every seam and every button is a masterpiece that exudes the opulence and
privilege the crème de la crème deserve.
LP Louis Philippe from the House of Louis Philippe
LP
Louis Philippe is a brand for the young, passionate and those driven to carve
out their own identity; a generation on the rise and always on the move, dressed
in clothes that reflect their individualism and the spirit of freedom. It
embodies fashion that craftily blends the old with the new. Inspired by the
spirit of motoring, LP Louis Philippe is a seamless fit for the new generation.
It is a collection inspired by the old world style, modern sensibilities and a
sharp point of view – an invitation to play up their passion in fine style.
Footwear from the House of Louis Philippe
LP
Louis Philippe's fine crafted leather shoes and footwear for the youth that
embody the spirit of motoring in leather and suede were launched in 2010. This
collection of footwear promises the wearer the same elegance and attention to
the finest details that are so inextricably wedded to everything that bears the
famous crest.
New launches from Louis Philippe
Louis Philippe has launched a unique pro team Golf cup this year in association
with the Professional Golf Tour of India (PGTI). The Louis Philippe Cup is
The next big step for the brand is the launch of their store in Chennai.
Talking about the brand's latest developments, Mr. Jacob John, Brand Head,
Louis Philippe, said, "Louis Philippe has a new story to tell year after
year. This year has proved to be hugely successful with the launch of Louis
Philippe Golf Cup. We are now looking at successfully launching our largest
store in
ADITYA BIRLA
FINANCIAL SERVICES GROUP RECORDS PROFITABLE GROWTH IN Q2
- BFSG’s
consolidated profit before tax for Q2 stands at Rs.1380.000 millions as against
Rs.620.000 millions in the previous year; for the first half, profit
before tax surges to Rs.3150.000 millions.
- Consolidated
revenues for the financial services businesses stands at Rs.16800.000
millions for Q2, registering growth of 4 per cent (year-on-year).
For the first half revenues are Rs.30110.000 millions.
- The combined
Assets Under Management (AUM) for Birla Sun Life Insurance (BSLI), Birla
Sun Life Asset Management (BSLAMC) and Aditya Birla Private Equity (ABPE)
as on September 30, 2011 stands at about Rs.883000.000 millions.
- Birla Sun
Life Insurance and Birla Sun Life Asset Management improve their industry
rankings.
- Plans
underway to enter infrastructure financing business.
Mumbai: The Aditya Birla Financial Services Group
(ABFSG) recorded strong and profitable growth in the second quarter of FY12,
reporting a consolidated profit before tax at Rs.1380.000 millions as against
Rs.620.000 millions in the corresponding period last year.
Its key verticals including life insurance, asset management and NBFC saw good
momentum on the back of a balanced product mix and strong client focus.
During the second quarter, ABFSG posted consolidated revenue at Rs.16800.000
millions, up 4 per cent over the same period last year. For the first half of
the current fiscal, revenues were Rs.30110.000 millions compared with
Rs.29030.000 millions for the same period last year. Consolidated net profit
for H1FY12 jumped to Rs.2840.000 millions as against Rs.1050.000 millions
(before extraordinary losses) in the corresponding period last year.
The company’s combined Assets Under Management (AUM) for BSLAMC, BSLI and ABPE
at the end of Q2 FY12 was Rs.883000.000 millions. For the first half of the
current fiscal, earnings before tax stood at Rs.3150.000 millions.
Mr. Ajay Srinivasan, Chief Executive – Financial Services, Aditya Birla Group,
said, “The Financial Services business continued to strengthen its market
position, as a significant non-bank financial services player, helped by its
strong team, innovative approach and integrated business model. This enabled us
to focus on balanced growth, building a business that is profitable and
sustainable.”
Following are some of the highlights of Q2FY12 (of the business divisions):
Birla Sun Life Insurance (BSLI):
- BSLI improved
its ranking to become 4th among private sector players and increased its
market share from 7.6 per cent to 8.7 per cent.
- In September
2011, a year after the new regulations came into play in the industry, new
business premium of BSLI achieved year-on-year (Y-o-Y) growth of 58 per
cent.
- During the
quarter, earnings before tax of BSLI surged year-on-year from Rs.200.000
millions to Rs.970.000 millions. The growing in-force book, balanced
product mix and better expense management drove bottom-line growth.
- The gross
premium income of BSLI grew Y-o-Y by 6 per cent to Rs.15330.000 millions
with the renewal premium growing by 21 per cent to Rs.10550.000 millions.
- The 13th
month persistency ratio, a key measure of value creation, stood at 82 per
cent as on 30th September 2011.
- Our non-ULIP
portfolio has been strengthened and has contributed to 44 per cent of the
individual new business as compared to 8 per cent in the second quarter of
the previous year.
Birla Sun Life Asset Management (BSLAMC):
- During the
quarter, BSLAMC moved one step up, to rank 4th in the industry, with a
market share of 9 per cent.
- Market share
in domestic equity average AUM increased quarter-on-quarter to 5.4 per
cent.
- BSLAMC posted
revenues of Rs.780.000 millions and earnings before tax of Rs.200.000
millions for the quarter.
Aditya Birla Finance (ABFL):
- The NBFC
business, grew its book size Y-o-Y by 24 per cent to Rs.25000.000
millions.
- Revenue grew by
128 per cent on Y-o-Y basis from Rs.320.000 millions to Rs.730.000
millions.
- PBT increased
by 130 per cent on Y-o-Y basis from Rs.110.000 millions to Rs.250.000
millions.
- Q-o-Q, book
size grew by 27 per cent, revenue grew by 23 per cent and PBT grew by 153
per cent.
Aditya Birla Private Equity (ABPE):
- Our first
fund, viz., Aditya Birla Private Equity – Fund I, has deployed about 40
per cent of its fund size of Rs.881 crore.
Aditya Birla Money and Aditya Birla Money
Mart (ABM and ABMM):
- Aditya Birla
Money continued to enhance its market share in commodities and retail
equity segments.
- The company
entered into an Memorandum of Understanding with the Allahabad Bank for
offering our online trading platform for their customers.
- Aditya Birla
Money Mart was ranked as the 3rd largest corporate mutual fund distributor
in
Aditya Birla Insurance Brokers (ABIB):
- Wrote premium
of Rs.580.000 millions as against Rs.400.000 millions last year.
- Recorded
revenue growth of 124 per cent Y-o-Y.
About Aditya Birla Financial Services Group (ABFSG)
The Aditya Birla Financial Services Group (ABFSG) has built a significant
presence across its verticals, viz., life insurance, asset management, NBFC, private
equity, broking, wealth management and distribution and general insurance
advisory services.
The seven companies representing Aditya Birla Financial Services Group are
Birla Sun Life Insurance Company Limited, Birla Sun Life Asset Management Company
Limited, Aditya Birla Finance Limited, Aditya Birla Capital Advisors Private
Limited, Aditya Birla Money Limited, Aditya Birla Money Mart Limited and Aditya
Birla Insurance Brokers Limited. ABFSG is committed to being a leader and role
model in a broad based and integrated financial services business. Its
seven lines of businesses, with about 5.5 million customers manages
assets worth about Rs.883000.000 millions approximately and prides itself for
having a talent pool of about 15,000 committed employees. ABFSG has its wings
spread across more than 500 cities in
ABFSG is a part of Aditya Birla Nuvo Limited (ABNL), a US$4 billion
conglomerate having leadership position across its manufacturing as well as
services sector businesses. ABNL is a part of the Aditya Birla Group, a US$35
billion Indian business house operating in 33 countries across the globe.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.78 |
|
|
1 |
Rs.80.10 |
|
Euro |
1 |
Rs.68.81 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.