Aditya Birla Fashion and Retail (ABFRL) on Tuesday widened its consolidated net loss to Rs 230 crore in the March 2024 quarter (Q4FY24), in a weak market. Bloomberg consensus estimates had forecast a net loss of Rs 259 crore for the period.
Consolidated revenue in Q4 grew 18.3% year-on-year (y-o-y) to Rs 3,407 crore, which compares favourably with a Rs 3,337 crore estimate by Bloomberg. Earnings before interest tax depreciation and amortisation (Ebitda) grew 47.1% y-o-y to Rs 284 crore. While Ebitda margins grew 160 basis points (bps) to 8.3% in Q4 versus 6.7% reported in the year-ago period.
The retailer said that in a slow market, lifestyle brands, its largest unit, which will be demerged into a new firm Aditya Birla Lifestyle Brands, saw a 2% y-o-y growth in Q4, touching Rs 1,564 crore. The business achieved an Ebitda of Rs 305 crore, a growth of 36% versus last year due to better gross margins and cost management. Ebitda margins rose to 19.5% in Q4, up 480 bps versus the previous year. Besides lifestyle brands, the demerged unit will include youth brands (American Eagle, Forever 21) sports wear (Reebok) and innerwear and athleisure business.
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Pantaloons, on the other hand, posted Q4 sales of Rs 895 crore, which was a growth of 10% versus last year. Like-for-like growth in the quarter was only 1%, the company said. Pantaloons along with StyleUp, ethnic brands and super premium brands will continue to be part of ABFRL.
The company said that it remained committed to building its business despite sluggish discretionary consumption over last 6-8 quarters.
“The strategic demerger of ABFRL is creating two separate growth engines, each with a clear capital allocation strategy and a unique path for value creation. Both entities will focus on specific growth areas aligned with their business models to maximise shareholder returns,” the company said.
Shares of ABFRL closed 0.19% lower at Rs 285.65 apiece on the BSE ahead of its earnings on Tuesday.
From: financialexpress
Financial News
