Aditya Birla Nuvo posts Rs 28 cr loss for Q1
Aditya Birla Nuvo, flagship of the Birla Group, announces a consolidated net loss of Rs 28 crore for the first quarter ended June 30 due to higher losses in its life insurance business and expansion in its apparel arm.business Updated: Aug 04, 2008 22:20 IST
Aditya Birla Nuvo, flagship of the Birla Group, has announced a consolidated net loss of Rs 28 crore for the first quarter ended June 30 due to higher losses in its life insurance business and expansion in its apparel arm. The company had announced a net profit of Rs 95 crore in the corresponding period a year-ago.
Standalone net profit is up by 23 per cent at Rs 42 crore from Rs 34 crore. Total standalone revenues rose to Rs 1,079 crore for the quarter from Rs 780 crore in the same period previous fiscal. The company's share price fell 5.58 per cent to close at Rs 1264.70 from Rs 1339.45 in the previous session.
Aditya Birla Nuvo said in a filing to the Bombay Stock Exchange that the total income rose by 48 per cent to Rs 3,253 crore in the three months ending June 2008, up from Rs 2,199 crore in the last fiscal year.
The life insurance business recorded a net loss of Rs 147 crore against Rs 34 crore in the same quarter last year. A release from the company said that the new business premium in the life insurance business, though profitable in the long run, created strain in the first year.
During the quarter, the insurance business grew by 187 per cent at Rs 502 crore. “While the company grew substantially in revenues size, the consolidated profitability does not reflect the true picture of the investments made,” the filing said.
Idea Cellular, telecom arm of the company, which merged Spice Communications with itself during the quarter, posted a 47 per cent rise in revenues at Rs 2,174 crore. However, the net profit declined by 15 per cent at Rs 263 crore during the June quarter.
The BPO business reported a net loss of Rs 24 crore for the quarter under review, against a net loss of Rs 7.9 crore in the corresponding period previous fiscal, while the revenue from garment business grew 12 per cent at Rs 224 crore.