The Aditya Birla Group company saw its net profit rocket up helped by net sales and trimming of long-term debt
Aditya Birla Chemicals (India) Ltd, has reported above average net sales growth. For the quarter to end-March, the Aditya Birla Group reported total revenues, including sales, of Rs211.80 crore, a growth of 26% compared with Rs168.21 crore same period last year. During the quarter, the company’s net profit rose 156.54% to end the March 2013 quarter at Rs7.85 crore from Rs3.1 crore a year ago period. Similarly, its operating profit showed a 34% y-o-y increase at Rs44.04 crore.
Moneylife wrote about the company in the Street Beat section in 27 December 2012 issue.
According to Moneylife database, the company reported above-average net sales growth rate of 26% y-o-y when compared to its three-quarter y-o-y growth rate of 22%. It has posted strong sales growth in the last four quarters. Similarly, its operating profit rose 34% y-o-y when compared to its three-quarter y-o-y growth rate of 31%.Barring a blip in the September 2012 quarter, the company posted double digits growth rates in the last four quarters. The company has significantly pruned its long-term borrowings by 10%. The company’s return on networth is an abysmal 3% while its return on capital employed is much higher at 16%. The market values the company at a market capitalisation of just 1.55 times operating profit.
The company has declared a full year dividend of 10%.
Aditya Birla Chemicals is a leading manufacturer of bulk and speciality chemicals and viscose filament yarn. The business is spread across multiple manufacturing locations in three countries – India, Thailand and China.
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