Aditya Birla Fashion and Retail Ltd (ABFRL) released its fiscal second quarter earnings with a loss of Rs 214.70 crore in comparison to a loss of Rs 200.34 crore recorded during the corresponding quarter of previous year. It posted revenue from operations at Rs 3,643.86 crore, registering a growth of 12.9 per cent as against Rs 3,226.44 crore during the same period of previous financial year. The company EBITDA stood at Rs 361.4 crore, up 11.8 per cent on-year. “Businesses achieved consistent growth this quarter, despite a subdued consumption environment, driven by sustained focus on driving product enhancements, elevated customer experiences and brand refresh,” the company said in a regulatory filing.
Consolidated net profit, the company said, was impacted on account of higher depreciation/amortization for brand and retail assets due to inclusion of TCNS and higher interest costs on account of elevated borrowings.
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“Growth was largely led by newer businesses operating in emerging consumer segments, while our established brands continued with their growth trajectory with a clear focus on improved profitability. While Aditya Birla Lifestyle Brands Limited (ABLBL) reported sustained margins, the demerged ABFRL posted a sharp recovery in margins across its constituent businesses,” it said.
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Q2 performance across businesses
Proposed Aditya Birla Lifestyle Brands Limited (ABLBL):
• Lifestyle brands – Louis Philippe, Van Heusen, Allen Solly, Peter England, Simon Carter
• Youth Western wear Brands – American Eagle & Forever 21
• Sportswear brand: Reebok
• Innerwear business under Van Heusen
The company said that the lifestyle category revenue stood at Rs 1636 crore, registering a growth of 3 per cent over last year. EBITDA for the business was Rs 302 crore resulting in an EBITDA margin of 18.4 per cent. Retail LTL for the quarter was at 3.4 per cent, driven by well-rounded improvements across products (casualisation, younger fashion) and enhancement of in store experience.
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