Aditya Birla Nuvo Ltd said its net profit rose to Rs149 crore in the first quarter ended 30 June 2010 as against the net loss of Rs35 crore during the same quarter last year. The company’s total revenues increased to Rs3,810 crore in the June 2010 quarter from Rs3,214 crore same quarter a year ago.
On Friday, Aditya Birla Nuvo shares declined 0.4% to Rs772 on the Bombay Stock Exchange, while the Sensex closed 0.7% lower to 17,868 points.
New Delhi: The Insurance Regulatory and Development Authority (IRDA) today said it would finalise guidelines for initial public offer (IPO) by general insurance companies in a couple of months, reports PTI.
As for life insurance, the guidelines are almost ready and would be out shortly, it added.
"As regards the non-life companies, a lot of work has to be done on valuation and (guidelines) should be ready in a couple of months," IRDA chairman J Hari Narayan told reporters on the sidelines of a Federation of Indian Chambers of Commerce and Industry (Ficci) conference here.
He said the proposed IPO guidelines for life insurance firms are currently being examined by a SEBI body and will be issued shortly.
"As far as the life industry IPO guidelines are concerned, the matter is very advanced and is currently with a body of SEBI. So, it would be coming out shortly," he said.
When asked whether the proposed guidelines would have a provision that insurance companies will have to be in operation to float IPO, he said, "Yes, this is the government norm".
As per the Insurance Act, promoters having 26% stake can offload equity after 10 years of operation. The legislation also empowers the government to reduce the mandatory period.
IRDA had already notified the disclosure norms, necessary for providing details about the operations and balance sheets on quarterly and yearly basis. The IPO guidelines will deal with minimum norms that a company must fulfill before hitting the capital markets.
Besides, the state-owned Life Insurance Corporation, 22 private companies are offering life insurance policies. The general insurance sector has 21 players which include four state-owned companies.
Several private sector insurers, including Reliance Life and HDFC Standard Life, have shown interest in tapping the capital market to augment their resource base.
The retail chain opened two new stores last week in Bhopal and Bengaluru. Its same store sales growth was 21%, which was a key factor that led to a jump in net profit
Shopper’s Stop Ltd reported a net profit of Rs10 crore and business turnover of Rs385.7 crore in the first quarter of the current fiscal. The company points out that same store sales growth (21% in the first quarter of the current fiscal) is a key factor which led to such dramatic profit figures.
“Our same store sales growth is 21% quarter-on-quarter basis, which is a big factor that contributed to growth in net profit. We reported marginal growth by 50 basis points; operating cost is down by 100 basis points; lease rental is down by 160 basis points; depreciation is down by 30 basis points and interest cost is down by 90 basis points on a quarter-on-quarter basis. All these factors constituted an increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) figures from Rs15 crore to Rs25 crore and 297% jump in net profit,” said Govind Shrikhande, customer care associate and managing director, Shopper’s Stop Ltd.
The retail chain recently opened two new stores last week in Bhopal and Bengaluru. Earlier, it opened two stores in April 2010 — one in Amritsar and one in Malleswaram (Bengaluru). “We are still on track to open more than 10 stores in this current fiscal and add 5 lakh sq ft, by the end of this fiscal,” said Mr Shrikhande.
The company opened four new stores in the last three months (starting from April 2010 till July 2010).
The company is opening its next stores in Ahmedabad, Aurangabad, New Delhi, Durgapur and Mysore. In the next three years, the company will be operating in 26 cities, out of which eight to nine (outlets) will be in Tier-II cities.
“We are expanding in Tier-II cities because we have received a good response from our stores in Lucknow and Jaipur. We are opening a second store in Jaipur,” said Mr Shrikhande.
In the first quarter which ended in June 2010 of the current fiscal, same store volume growth increased to 13.2%, combined with an average selling price increase of 2.9% on a quarter-on-quarter basis.
The company has decided to close down the ‘Arcelia’ format stores as it is an unprofitable store and unviable venture. Arcelia stores were targeted primarily towards women with brands in the categories of cosmetics, jewellery, watches, bags, footwear and sunglasses. It has currently one operational Arcelia store in Pune which it plans to shift to the new departmental store opening up in Pune soon.