For the fourth quarter that ended in March 2023, Aditya Birla Fashion and Retail Ltd. recorded a combined net loss of Rs. 194.54 crore on Monday.
According to a regulatory filing by Aditya Birla Fashion and Retail Ltd (ABFRL), the business reported a net profit of Rs 31.90 crore for the January-March quarter of the previous fiscal year.
During the quarter under review, it generated Rs 2,879.73 crore from operations. In the similar period of the previous fiscal, it was Rs 2,282.83 crore.
Due to negative operational leverage brought on by slow sales, the net profit for the quarter was negatively affected. Profitability in the quarter was also hampered by rising marketing expenses and ongoing investments in TMRW, according to ABFRL's earnings announcement.
In Q4 FY23, ABFRL incurred total costs of Rs. 3,177.64 crore.
The Aditya Birla Group company claims that its consolidated financial statements for the three months and full fiscal year ended March 31, 2023, are not “comparable” to those for the three months and full fiscal year ended March 31, 2022.
The “acquisition of subsidiaries House of Masaba Lifestyle Private Limited w.e.f. June 01, 2022, Aditya Birla Digital Fashion Ventures Limited w.e.f. April 11, 2022, and Aditya Birla Garments Limited w.e.f. June 15, 2022” is to blame for this.
Madura Fashion & Lifestyle sector revenue in the March quarter was Rs 2,155.68 crore, while its retail chain Pantaloons segment revenue was Rs 797.81 crore.
Due mostly to ongoing expenditures in new business projects, ABFRL “closed the quarter with net debt of Rs 1,422 crore.”
Strong retail like-to-like (LTL) sales across companies, expanded omnichannel play, and network development as the firm built 500+ locations in the previous year all contributed to quarterly revenue growth. Negative operational leverage brought on by slow sales had an effect on net profit for the period, it added.
The loss during the fiscal year that ended in March 2023 for ABFRL was Rs 59.47 crore. In FY22, it reported a net loss of Rs. 118.36 crore.
In FY23, it had a total operating income of Rs. 12,417.90 crore.
Regarding the future, ABFRL said that when the economy improves, it would continue to concentrate on creating powerful brands and running its companies with adaptability and agility.
The report said that the garment sector is “ready for significant growth supported by premiumisation and an accelerated shift from unbranded to branded products” due to a long-term increase in discretionary purchasing.
An attractive bouquet of top fashion brands and retail formats can be found at ABFRL, a member of the Aditya Birla group.
In addition to the fast fashion retailer Pantaloons, the company's portfolio of top brands includes Louis Philippe, Van Heusen, Allen Solly, and Peter England. As of March 31, 2023, it has a network of 3,977 locations spread among around 33,535 multi-brand outlets.
The Collective, India's leading multi-brand retailer of foreign brands, is one of the company's international Brands portfolio companies. It has long-term exclusive collaborations with labels including Ralph Lauren, Hackett London, Ted Baker, Fred Perry, Forever 21, American Eagle, and Reebok.
On Monday, Aditya Birla Fashion and Retail Ltd. shares increased 0.58 percent from the previous close to finish at Rs. 189.85 on the BSE.