Aditya Birla Nuvo Limited = FY 2011 & Q4 FY 11 NON CONSOLIDATED RESULTS = FY 11 NPT UP BY 34% FROM FY 10

Aditya Birla Nuvo Limited

NSE Symbol        ABIRLANUVO

Aditya Birla NUvo has declared its Non-consolidated results for FY 2011 and Q4 FY 11.

Net Sales is Rs.6283.06 cr in FY 11 – up by 33.62% from FY 10. For Q4 FY 11 ,the same is Rs.1728.71 cr – up by 3.3% from previous qtr and by 31.42% from corresponding qtr of previous year.

Total Expenditure for FY 11 is Rs.5726.38 cr – up by 34.93% from  FY 10. For Q4 FY 11, the same is Rs.1597.05 cr – up by 4.93% from previous qtr and by 33.37% from corresponding qtr of previous year.

Profit from Operations for FY 11 is Rs.718.15 cr – up by 23.05% from FY 10. The same for Q4 FY 11 is Rs.182.48 cr – down by 5.45% from previous qtr and up by 18.87% from corresponding qtr.

Profit before tax       for FY 11 is Rs.495.08 cr – up by 54.57% from FY 10. The same for Q4 FY 11 is Rs.122.66 cr – down by 10.07% from Previous qtr and up by 26.38% from corresponding Qtr.

Net Profit for FY 11 is Rs.379.69 cr – up by 33.98% from FY 10. The same for Q4 FY 11 is Rs.94.91 cr – down by 5.45% from previous qtr and down also by 34.87% from corresponding qtr – due to increase in tax expense.

Basic EPS is Rs.35.84 for FY 11 – against Rs.28.81 for FY 10; Rs.8.36 for Q4 FY 11; Rs.9.62 for Q3 FY 11; and Rs.14.15 for Q4 FY 10.

Thus, the stand Alone performance for FY 11 over FY 10 is good. But, the Net profit for Q4 has come down due to higher Tax expense and higher total  expenditure compared to previous and corresponding qtrs.

This comparison is on stand alone basis. The consolidated comparison will be done separately. However, some details from the corporate presentation of Aditya Birla Nuvo are furnished here.

Non-Consolidated Results Table :

A B NUVO LTD	FY 11 NC	FY 10 NC	31-Mar-11	31-Dec-10	31-Mar-10
Net Sales	628306	470236	172871	167355	131536
Other Operating Income	16147	12511	5082	4149	3561
Increase in SIT / WIP	-16328	506	-2768	179	-1132
Raw Materials	361628	262387	102094	90910	75700
Traded goods	45391	19890	12837	12588	6860
Employees Cost	48066	34773	11524	12782	10432
Depreciation	19395	18010	5097	4869	4710
Other Expenditure	114486	88820	30921	30877	23176
Total Expenditure	572638	424386	159705	152205	119746
Profit from Operations	71815	58361	18248	19299	15351
Other Income	5801	7079	939	1355	1669
Interest	28108	33410	6921	7014	7314
Profit before tax	49508	32030	12266	13640	9706
Tax Expense	11539	3690	2775	3602	-4866
Net Profit	37969	28340	9491	10038	14572
Dividend (%)	55	50	-	-	50
Face Value (in Rs.)	10	10	10	10	10
Paid-up Equity	11351	10301	11351	11351	10301
Reserves	528300	441420	-	-	-
Basic EPS	35.84	28.81	8.36	9.62	14.15
Diluted EPS	34.98	27.62	8.35	9.34	13.61
Public holding (%)	46.11	50.77	46.11	46.09	50.77

FROM  AB  NUVO’S CORPORATE PRESENTATION

Note 1: The Hon'ble High Court of Delhi has granted an ex-parte ad interim stay on its earlier order sanctioning the Scheme of Amalgamation of erstwhile Spice Communications Limited with Idea Cellular Limited (Idea), a joint venture (JV) of Aditya Birla Nuvo Ltd. (ABNL). As a result of this extra ordinary situation, Idea has not published its Financial Statements (FS) for the quarter and the year ended 31st March 2011. In absence of FS from Idea, ABNL has decided to publish unaudited consolidated results for the quarter and the year ended 31st March, 2011, considering FS of Idea for the nine months period ended 31st December, 2010 being the latest period for which Idea has published its financial results. For the purpose of making consolidated results comparable, ABNL has provided pro-forma consolidated results for the year ended 31st March, 2010 considering FS of Idea for the nine months period ended 31st December, 2009. ABNL will publish its Audited Consolidated Financial Results for the year ended 31st March 2011, on receipt of FS of Idea.

ADITYA BIRLA NUVO ltd – is in (1) Financial Services (Life insurance, Asset Management,  NBFC, Private Broking, wealth management, General Insurance Advisory)  (2) Telecom (3) IT-IT eS (4) Fashion & Life style (5) Manufacturing (Carbon Black, Agri Business, Rayon, Insulators, Textiles)

Key High lights of FY 11 (consolidated ) :

·         Revenue grew y-o-y by 17% to ` 17,102 Cr. (~USD 4billion)

·         EBITDA surged by y-o-y 71% to ` 2,420 Cr. (~USD 538 million)

·         Net Profit grew to` 752 Cr. (~USD 167 million) vis-à-vis ` 84 Cr. (~USD 19 million) in FY10

Growth supported by strong Standalone Balance Sheet :

·         More than 60% of standalone capital employed is deployed in long term investments

·         Leveraging at comfortable level supported by strong cash flows generated by manufacturing businesses

·         Equity infusion of `1,000 Cr. through preferential allotment of 18.5 million warrants to promoters further strengthened balance sheet.

Birla Sun Life Insurance :

·         Covering over 2.4 million lives, BSLI ranks among the top 6 private lifeinsurers inIndia

·         Strong distribution reach : A nation-wide presence with ~600 branches, ~150,000 direct selling agents, 5 bancassurance partners and more than 225corporate agents & brokers

·         Focus on superior and consistent fund performance : ~100% of AUM is ahead of set benchmarks

·         Growing size of in-force book & better expense management led to reduction of loss from ` 702 Cr. in FY09 to ` 435 Cr. in FY10 and capital infusion from ` 725 Cr. to `450 Cr.

·         Posted net profit of ` 305 Cr. in FY11.

·         No capital infusion was required in FY11As on 31stMar‟11, 13thmonth premium persistency is at ~83% and 25thmonth premium persistency is at ~77%

Birla Sun Life Asset Management (BSAMC)

·         15 years + journey of continued wealth creation

·         “Asset Management Co. of the Year-2009 & 2010” -The Asset, HK Among top 5 players in India with market share of 9.1% in Q4FY11

·         Consistent rise in its share in industry‟s domestic equity avg. AUMBuilding alternate assets :

·         Maiden Real Estate Onshore Fund collected `1,088 Cr.

·         Expanding International Presence : Set up offices in Dubai & Singapore

·         Revenue grew to ` 366 Cr. & Net Profit to ` 85 Cr.

·         Aditya Birla Private EquityHuge opportunity in the Private Equity space in India driven by (a) Long term growth potential of Indian Industry, (b) Rising disposable income and growing participation of HNIs and (c) Mature & liquid financial markets and conducive government policies for private investment

·         Maiden fund of Aditya Birla Private Equity closed recently at a size of `881 Cr.

·         Invested in Anupam Industries, Bombay Stock Exchange, Credit Analysis & Research Ltd., GEI Industrial systems.

·         Launched „Sunrise Fund‟ aiming at emerging sectors viz., Lifestyle, Lifeskills& Education, Lifecare& applied technologies

Aditya Birla Finance (NGFC)

·         Credit penetration in India at ~60% of GDP is lower compared to other emerging and developed economies

·         NBFCs have around 12% share in overall Credit Outstanding of ~ USD 850 billion (Mar‟10E) in India (Source : RBI)

·         Credit Outstanding is expected to grow at a CAGR of ~20% for next three years (Source : RBI)

·         Aditya Birla Finance is among the leading NBFCs in India

·         Leveraging Aditya Birla Group‟s ecosystem for SMEfunding

·         Closing book size more than doubled y-o-y to ~ ` 1,800 Cr. in FY11

·         Disbursed loans of ~` 5,000 Cr. towards IPO funding during FY11

Aditya Birla Money (Broking)

Aditya Birla Money is one of the leading retail broking companies in India with a nationwide branch network of ~220 branches and over 725 franchisees serving ~250,000 customers across more than 150 cities

Aditya Birla Money Mart (Wealth Management & Distribution)

Aditya Birla Money Mart is 3rdlargest corporate distributor of mutual funds in India in terms of Assets under Advisory at~ `139 billion as on 31stMarch 2011

Nationwide presence with 37 branches and ~14,000 channel partners serving ~ 250,000 customers

Idea Cellular (Telecom)

·         Ranks 3rdin terms of Pan India wireless revenuemarket share at 13.3%1up from 12.7% one year ago

·         Ranks 2ndwith 21%1revenue market share in 9 service areas where it holds 900 MHz spectrum

·         Having a market cap of ~USD 5 billion, Idea serves a large customer base of ~90 million subscribers

·         Ranks among top 10 players globally with total Minutes of Use on network of more than 1 billion per day

·         Winner of 3G spectrum in 11 service areas which contribute 80% of Idea‟s existing 2G revenue

·         Idea holds 16% stake in the world‟s largest Indus Towers

·         Strong balance sheet & cash profit to support growth : Net Debt/EBITDA at 2.9 & Net Debt/Equity at 0.9

Madura Garments (Fashion & Lifestyle)

·         Domestic apparel market is expected to grow from USD 26 billion in 2009 to USD 37 billion by 2014(Source : Crisil)

·         Madura Garments is the largest premium Branded Apparel player in India : A complete lifestyle proposition

·         Leadership built by Strong Brands : Louis Philippe, Van Heusen, Allen Solly, Peter England, People. Strategic distributorship tie-up with leading brand Esprit. Retailing international brands under „The Collective‟.

·         Retailing branded apparels and accessories through ~900 exclusive brand outlets spanning across ~1.3 million square feet besides reaching customers through more than 1,250 departmental stores and multi brand outlets

Aditya Birla Minacs (IT-ITeS)

·         EBITDA (` Cr.)Ranks among top 10 India BPO companies by revenue size

·         A global solution provider serving more than 100 clients through 33 centres in US, Canada, Europe, India & Philippines

·         Employees base of ~19,600 (NA : ~7300, APAC : ~12300) –Added about 4,000 headcounts in past one year

·         Augmenting non-voice capabilities : Acquired UK based Compass BPO, a leading F&A service provider in Mar‟10 and US based Bureau of Collection Recovery (BCR), a leading accounts receivable management company, in Jun‟10

·         Total contract value (TCV) of more than USD 775 million sold and 21 new logos won during FY11

·         About 55% of TCV is on account of new business and balance is renewal business

·         Diversifying capabilities and building strong order

Manufacturing businesses :

·         Strong market positioning across manufacturing businesses

·         Second largest producer of Carbon Black in India

·         India‟s largest & world‟s fourth largest manufacturer of Insulators

·         Second largest producer and largest exporter of Viscose Filament Yarn in India

·         Among the best energy efficient Fertiliser plants in India

·         Largest Linen Yarn and Linen Fabric manufacturer in India

Going Forward ...

·        Increasing market share while building a profitable book with a strong focus on distribution efficiency, persistency, expense management and service in the Life Insurance business

·         Increasing market share profitably with a strong focus on distribution, high margin assets, service and fund performance in the Asset Management business

·         Focusing to grow the book profitably while managing risk optimally in the NBFC business

·         Continue to increase revenue market share by capitalising on brand IDEA while leveraging 3G spectrum to augment revenue stream and enrich customer experience in the Telecombusiness .

·         Continue to leverage brand leadership and expanded retail space besides extending range of merchandise for superior shopper experience in the Fashion & Lifestyle business

·         Augmenting capabilities, building strong order book, scaling up F&A and Collections verticals in the IT-ITeSbusiness

·         Margin enhancement across the Manufacturingbusinesses by maximising operating efficiency & passing on rise in input & fuel costs.

 * * *  E  N  D  * * *

Edserv Softsystems Limited = Q4 FY 11 & FY 2011 RESULTS = FY 11 PROFITS UP 129% YOY. Q4 PROFITS UP 93% YOY. = GOOD PERFORMANCE

Edserv Softsystems Limited

NSE Symbol        EDSERV

Edserv Softsystems has performed well in FY 11. Its consolidated and stand alone results, along with FY 10 comparison are given below. The fourth quarter results are also compared with the 4^th Qtr of FY 10.

Net Income from sales / services for FY 11 (consolidated) is Rs.122.16 Cr ( stand alone is : Rs.107.42 cr) which is 134.39% above FY 10 sales. The Q4 FY 11 Sales was Rs.37.95 cr – up by 82.5% from Q4 FY 10.

Operating Profit  after Interest for FY 11 (Con) is Rs.54.10  Cr( SA : Rs.54.62 Cr)  - which is 132.67% higher than FY 10. The Q4 FY 11 OPT was Rs.17.48 cr – which is 123.39% above Q4 FY 10.

Profit(before tax)        for FY 11 (Cons) is Rs.54.45 Cr (SA : Rs.54.97 Cr) which is a good 128.62% above FY 10. The Q4 FY 11 PBT is Rs.17.54 Cr – up by 116.82% above Q4 FY 10.

Net Profit for FY 11 (Cons) is Rs.41.22 Cr (SA : 41.74 Cr) – which is a good 128.74% above FY 10. The Q4 FY 11 NPT is Rs.11.94 Cr – which is 93.07% higher than Q4 FY 10.

This Chennai based Education Services Company  has recommended a dividend of Rs. 3 per share for FY11.

Basic EPS  against a face Value of Rs.10 is Rs.26.79 for FY 11 (Cons); Rs.26.22 (FY 11 stand alone); Rs.15.01 for FY 10 (SA); Rs.       7.51 for Q4 FY 11; and Rs.    5.15 for Q4 FY 10.

PE RATIO : Current Market price is Rs.143. At this price, and on the EPS of Rs.26.79, the PE ratio works out to just 5.34.

Considering the Potential for expansion in this area of Business, Edserv is a good investment for medium to long term Investors.

Signs Agreement with IL & FS education

EdServ has signed an agreement with IL & FS Education whereby the company will deliver and support interactive teaching and learning environment in schools through Technology based eLearning solutions. With the aid of innovative technology platform like K-Yan (Knowledge Yan), EdServ will be further strengthening its presence in the school segment and will also target solutions in regional languages including Tamil, Telugu, Hindi, Marathi and Kannada. The company’s school expansion continues to grow with the student reach through schools increasing by 40%.

EdServ has also expanded its All India Network of Dealers & Distributors for its online offering by 30%

Commenting on the FY11 performance, S. Giridharan, Chairman and CEO, EdServ said, "FY11 has been a year of strong growth for EdServ. We have more than doubled both the revenues and net profit for the full year. During 2010-11, the company has expanded and strengthened its presence in all its area of operations – Academics, Test Preps, Higher education support, Skill development training and Job orientation.  Our sign-up with IL&FS education is significant in improving our reach to K-12 students providing academic support in their respective Boards of school education Pan India. These will be the growth drivers for the company going forward."

On the expansion plans for the next 12 months, Giridharan said, "As part of our expansion plans for FY12, we will expand our reach to offering our education products through TV, Tablet and Mobile device based users, apart from Internet based Laptop and Desktop. Other focus areas for the year include expanding our offering in the online test prep space to all leading Indian and International entrance examinations for Higher education. Our plan is also to reach out to students who can’t afford Internet connections and devices for accessing LAMPSGLOW contents through specialized training centers called EdInstitute that will provide the much needed access to these students, especially in Tier 2 and 3 towns in the country."

RESULTS TABLE : 

EDSERV SOFT	FY 11 CS	FY 11 SA	FY 10 SA	Q4FY11	Q4FY10
Net sales / services	12216.05	10742.01	5211.89	3795.06	2079.47
Traded goods	-	-	1503.33	-	665.47
Gross Profit	12216.05	10742.01	3708.56	3795.06	1414
General Admn Expenses	6586.53	5060.27	1189.86	1991.88	541.8
Depreciation	180.01	180.01	150.1	49.53	71.41
Operating Profit	5449.51	5501.73	2368.6	1753.65	800.79
Interest	39.57	39.57	43.41	5.5	18.22
Operating Profit  after Intt	5409.94	5462.16	2325.19	1748.15	782.57
Other Income	34.85	34.85	56.4	5.69	26.34
Profit( before tax)	5444.79	5497.01	2381.59	1753.84	808.91
Tax Expense	1322.9	1322.92	579.6	559.53	190.31
Net Profit	4121.89	4174.09	1801.99	1194.31	618.6
Face Value (in Rs.)	10	10	10	10	10
Paid-up Equity	-	-	1200.6	-	1200.6
Reserves	-	-	3662.89	-	3662.89
Basic EPS  (in Rs.)	26.79	26.22	15.01	7.51	5.15
Public Holding (%)	75.47	75.47	70.06	75.47	70.06

ANNOUNCEMENTS TO NSE

30-05-2011        The Board of Directors of the Company at its meeting held on May 30, 2011 transacted the following businesses :- (1) Approved the constitution of FCCB / ADR / GDR committee to carry out necessary acts as may be necessary; (2) Approved the reappointment of Managing Director and Chairman; (3) Recommended 0.75% commission to non-executive directors.

30-05-2011        The Board of Directors of the Company at its meeting held on May 30, 2011 have recommended a final dividend of Rs. 3/- per share.

30-05-2011        "EdServ FY11 Net Profit up 129% at Rs.41cr, Revenues up 134% at Rs.122cr".

 *  *  *   E  N  D   *  *  *

BABA RAMDEVJI = ANNA HAZARE = DR.MANMOHAN SINGH = CRUSADE AGAINST BLACK MONEY & CORRUPTION

BABA RAMDEVJI’S CRUSADE

AGAINST BALCK MONEY & CORRUPTION

I had attended Baba Ram Devji’s week long “Yog Subir” at Hyderabad several years ago. He was highly effective in communicating yog to all educated and uneducated men, women and children who attended the Sibir. 

Let me affirm that many of the modern speakers fail – in being so effective because of the sheer difference in the commitment to the cause.

I pooh – pooh the political and other leaders who try to ridicule him.

Better become a Nationalist like him – I would urge them.

I have not seen any one who has done “Bharat Darshan” so totally (after Mahatma Gandhi) and with so much commitment and involvement,  as Baba Ram Dev Ji.

Every where, he has spread yog, health and Ayurved – in a way that no one else can even hope to repeat in future. His commitment to people is total. His contribution to people’s health is also total.

Much like Anna Hazare – Baba Ram Devji also used to talk of social issues like corruption in his Yog Sibirs for a long time. Therefore it is good that both Anna hazare and Baba Ram Devji are now fighting corruption and Black money, though from two different platforms – so very vigorously. I only wished that the civil society leaders used services of eminent people like Baba Ram devji and N.R.Narayana Murthy, who have done yeomen service to the nation in their own ways. In an earlier blog post also, I had emphasized this need.

Baba Ram Devji may use certain terminology – which may look like extreme solutions – like hanging for black money hoarders.  But, suppose some one (an Indian) has hundreds of crores in  foreign banks unknown to Government of India  – it is obviously acquired  by committing all sorts of crimes in and against the nation. If all of their crimes are brought out – they may well deserve even hanging. But, that is not the important thing. The law will punish them as they deserve.

What is important is – the needed resolve of the Nation to arrest the birth of Black money and its deposit in foreign banks – concealed from the Indian Government. All concealed money in foreign Banks obviously is illegal money. Government must declare it so – and seek their repatriation to the Government of India. Why there should be two opinions on it? Can such concealed money be legal by any stretch of imagination? This is exactly what Baba Ram Dev Ji says.

And, I strongly feel – he is very right.

If all the Black money comes back to India and further generation is stopped – our nation becomes a great nation. A lot of poverty in the nation will disappear. Baba Ram Dev Ji is very emphatic about it.  

There can’t be two opinions on – whether all Black money should be rooted out and brought back to Government treasury. It has to be.

Corruption has to be curbed totally.

Now, we have, in my opinion, a very respected, honest, upright, learned Prime minister – like Manmohan Singhji – in the Government,   and we don’t know how the future Prime ministers will be like – but right now, we have one who deserves the Post eminently, but for some of the Political shackles that are binding him.

We all vote on the basis of caste, religion, Party affiliation and so on – but – how many vote for such an eminent person like Manmohan Singh – if he is not backed by a Political Party? This is the unfortunate problem in this country – which must change.

But right now – Anna Hazare and Ram Devji are crusading for rooting out corruption and Black money – and Dr.Manmohan singh, in my opinion, may be more than willing to put in place the required legislations and efforts, with their help.

In my strong opinion – their agitations – will be greatly helping Dr. Man Mohan Singh, in bringing legislations and other measures that are close to his own heart and in silencing the detractors.

What is needed at this crucial juncture - is pressure on Government from all the people of India– and  total support to Ram Dev –Anna Hazare - ManMohan Singh combination – in achieving this Goal.  

There are some voices which are trying to distract – by ridiculing these trio. One of them says - Why a sanyasi should be doing all this?  

Sage Vishwamitra took Ram specifically to kill the Raakshasaas and taught Ram all martial arts for the purpose. Sage Vasishta supported him totally. Sages want that Dharma should be established and adharma should be rooted out – and they took all necessary initiatives for it, always, in India. Ram had then fought and killed the Raakshasaas. Let Raam Devji do it now. Or, with help from Ram Devji and Anna Hazare, let Mana Mohan Singh Ji  do it.

People of India have tolerated corruption and Black money long enough and allowed the country to come to this rot – but now is the time to speak up and support.

Let all of us speak up.  


Please do – NOW.

= yours

V.VIJAYAMOHAN