Indian carbon black maker sees strong earnings rise

ERJ staff report (DRR)

Mumbai, India -- Aditya Birla Nuvo, a highly diversified Indian conglomerate, has reported a 50-percent rise in EBITDA (earnings before interest, taxes, depreciation and amortisation) on total revenues up 23 percent for the third quarter of 2010. The firm claims to be India's second largest carbon black supplier with a 37-percent share of the domestic market

The firm's total revenues for the first three quarters of 2010 rose to Rs 8388 crore (Euro1354 million), up 20 percent on the same period last year, while EBITDA jumped 57 percent for the period, reaching Rs 1177 crore, the firm said in a 30 Oct announcement.

Net profits also rose sharply, reaching Rs 105 crore for the third quarter, up from just Rs 1 crore the prior year. This brought net profit for the first three quarters of 2010 to Rs 254 crore as against a loss of Rs 34 crore in the same period of 2009.

The firm's manufacturing businesses, which includes its carbon black activities, saw combined revenues rise 26 percent, to Rs 1171 crore over the last year, while EBITDA at Rs. 206 crore remained flat. The focus is on capturing the sector growth and realising its full potential Aditya Birla reported.

Profitability in the second quarter of the previous year, reflects a one-time input price advantage in the carbon black business, the firm added.

The operating margin at 18 percent and return on average capital employed at 30 percent has been encouraging, the firm concluded.

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Press release from Aditya Birla Nuvo