Aditya Birla Nuvo Q2 Net Profit Declines 12 %

Aditya Birla Nuvo  has disclosed a decline of 12.1 per cent in its consolidated net profit amounting to Rs 283 crore for second quarter ended September 30, 2016. The company had clocked a net profit of Rs 322 crore during the July-September quarter of 2015-16. Net profit de-grew year-on-year owing to the reduction of ABNL's share in Idea's net profit by Rs 156 crore.

The net profit of company's telecom arm Idea Cellular had slipped from Rs 762 crore to Rs 91 crore mainly due to higher interest and amortization costs pertaining to the spectrum acquired in the earlier year. Going forward, the firm said it has planned a capex of approximately Rs 325 crore for its divisions, which includes Rs 191 crore and Rs 40 crore towards the expansion of linen yarn and VFY capacities, respectively.

Apart from this, there will be a capital requirement to the tune of about Rs 900 crore in the financial services businesses, involving new ventures Payments Bank and health insurance, it further added. About the amalgamation of ABNL with Grasim, it gave its view saying that the process of seeking requisite regulatory approvals for the scheme of amalgamation of ABNL with Grasim and the demerger and listing of the financial services business is on its way. The transaction is anticipated to be completed in the first half of the calender year 2017. The USD 3.6 billion conglomerate is present in financial business, telecom, linen, agriculture and insulators sectors. Recently, the firm has ventured into the solar power business and has also been given in-principle approval from RBI in order to set up a Payments Bank in joint-venture with Idea Cellular.

Aditya Birla Nuvo share price closed 2.39 per cent higher at Rs 1,324.15 on BSE. The stock was trading above 2 per cent at Rs. 1323.00. 

Aditya Birla Nuvo is one of the top 500 performing stocks for this quarter as identified by Dynamic Levels. For further details on the stock, refer to Aditya Birla Nuvo share price history.