Aditya Birla Nuvo Ltd has reported a net loss of Rs26.4 crore during the fourth quarter of the financial year 2008-09 (January-March 2009) against a loss of Rs70.5 crore in the same quarter of the previous year, due mainly to a subdued performance in the carbon black and the garments businesses.

Consolidated net loss, during the fourth quarter, increased from Rs21.8 crore to Rs141.2 crore. This is lower by Rs15.2 crore vis-à-vis a net loss of Rs156.4 crore incurred in the previous quarter, the company said in a release.

Standalone net loss during the year stood at Rs137.4 crore against Rs243.1 crore in the previous financial year.

Aditya Birla Nuvo is a platform that has launched many new businesses for the Aditya Birla Group. It has a balanced portfolio of traditional and new age businesses under its fold, ranging from textiles to life insurance.

During the year, the company's consolidated net sales grew 26 per cent to Rs14,200.4 crore from Rs11,249.6 crore, achieving growth across the businesses except for IT services and textiles.

The company's standalone net sales during the year rose 22 per cent to Rs4,687.6 crore from Rs3,842.3 crore, largely driven by the fertilisers and the carbon black businesses. During the fourth quarter, standalone net sales grew from Rs1,102.3 crore to Rs1,152.7 crore.

While the fertiliser business posted its best ever profitability, the rayon, insulators and textiles businesses posted satisfactory results amidst higher input and fuel costs. Standalone net profit during the year declined to Rs137.4 crore from Rs243.1 crore.

Consolidated net loss, during the fourth quarter, increased from Rs21.8 crore to Rs141.2 crore. This is lower by Rs15.2 crore vis-à-vis a net loss of Rs156.4 crore incurred in the previous quarter.

The telecom business reported a marginally lower net profit at Rs274.3 crore vis-à-vis Rs276.7 crore despite start-up costs for newly rolled out circles and its share in losses of Spice and Indus towers.

In the life insurance business, the net loss reduced from Rs201.9 crore to Rs189.5 crore despite the 19 per cent growth achieved in new business premium. Improved product mix and refinement of actuarial assumptions helped contain the loss.

In the BPO business, the net loss increased to Rs33.9 crore from Rs22.4 crore due to site closure costs and forex loss.

Profitability in the branded garments business was constrained due to the gestating impact of new store launches and discounting pressure. In the apparel retail subsidiaries, the pre-launch expenses of stores and branding costs adversely impacted the bottom-line by Rs43.8 crore against Rs16 crore last year; the benefit of which will accrue, going forward, the company said.

In the contract exports business, weak order flow/order cancellation led to lower capacity utilisation and forex loss. Corrective actions have been taken to regain profitability.

The company reported consolidated net loss of Rs430.5 crore against net profit of Rs150.8 crore attained in the previous year largely due to new business strain in the life insurance business and increased losses in the BPO and the garments businesses.

In the BPO and the garments businesses, the leadership team has been strengthened to ensure that the businesses achieve profitability faster.

Aditya Birla Nuvo said the company is optimistic about meeting the challenges of strategic growth initiatives and enhancing its revenues and earnings.  We have taken initiatives to ensure that all ongoing activities should start delivering the profitable growth from the ensuing year itself.

The board of directors has recommended a dividend of 40 per cent for the current year entailing total outgo of Rs42.4 crore, including dividend distribution tax.

Aditya Birla Nuvo has lined up capital expenditure of Rs350 crore for the financial year 2009-10, a senior official said, adding, the company  continued to pursue distinct strategic initiatives across its businesses to achieve growth.