Aditya Birla Nuvo said buoyed by strong operating growth and performance of the manufacturing

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businesses in the third quarter ended December 31, 2009, the company recorded a net profit of Rs 8.2 crore compared with a net loss of Rs 156.4 crore in the same quarter last year.

The earnings before interest, tax, depreciation and amortisation (EBITDA) grew 169.27 per cent to Rs 421 crore for the period., while net sales rose 18.16 per cent to Rs 4,085 crore for the quarter.

Sushil Agarwal, chief financial officer of Nuvo said, the performance at the EBITDA level was driven by improved profitability in the manufacturing businesses coupled with reduced losses in the life insurance, BPO and garments businesses. “As a result, net profit improved considerably, despite higher depreciation consequent to expansion in the telecom business,” Agarwal said.

Most of the businesses except the fertilizer and the insulator business have seen a positive growth. In the Aditya Birla Financial Services, the Birla Sun Life Insurance (BSLI) during April-December 2009, achieved 15 per cent year on year growth in its new business premium, while private life insurers grew by 3 per cent. The garment and BPO business too made profit in this quarter.

In the telecom space Idea Cellular registered a 15 per cent rise in revenues from Rs 2,728.6 crore to Rs 3,135.8 crore. The cash profit grew by 21 per cent to Rs 740.8 crore, however the net profit de-grew from Rs 219.5 crore to Rs 170.1 crore largely due to higher depreciation on expansion.

The company said that its BPO business Aditya Birla Minacs has turned positive at net profit level during the quarter. It generated cash profit for a consecutive third quarter reflecting sustainability of cost rationalisation efforts. The business reported a net profit of Rs 1 crore vis-à-vis a loss of Rs 37.8 crore last year.

The garment business too saw revenues grow year on year by 8 per cent to Rs 315.2 crore largely driven by a 20 per cent growth in sales from the retail channel.

The value manufacturing businesses – carbon black and fertiliser have collectively posted highest ever quarterly EBITDA at Rs. 221 crores and earned a 22.4 per cent operating margin with a 34.2 per cent return on average capital employed.

The Carbon Black business attained an EBITDA of Rs. 76 Crores vis-à-vis a loss of Rs. 20.1 Crores. This was led by 53% year on year growth in sales volumes.

The company is hopeful of future growth and believes that the consistent improvement in earnings as well as market positioning across the businesses along with a strengthened balance sheet would help them create value for all the stakeholders.