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BENGALURU: Aditya Birla Fashion and Retailer Ltd (ABFRL) on Monday reported its first quarterly loss in nearly 2 years, as soaring costs outpaced demand for its clothing and lifestyle products.
The company posted a consolidated net loss of 1.87 billion rupees ($22.9 million) for the fourth quarter ended March 31, from a profit of 435.9 million rupees a year ago, citing initial operating losses at its TMRW unit and new ethnic businesses. It last reported a quarterly loss in June 2021.
Total expenses jumped 40% to 31.78 billion rupees, outpacing revenue growth from operations, which rose 26% to 28.80 billion rupees, the company said in an exchange filing.
Consolidated profit margin before interest, tax, depreciation and amortization (EBITDA) decreased to 8% from 17.6% in the previous year.
The company also said that on its own, sluggish sales impacted its quarterly EBITDA margin, coupled with lower retail throughput and negative operating leverage.
ABFRL has invested in a number of new businesses over the past few years, including a number of companies that are either losing money or are stable. Analysts say that the acquisition of TCNS Clothing Co Ltd in May could add to the list.
Revenue from its main unit Madura Fashion and Lifestyle, which sells western wear and casual sportswear, grew by around 30% to 21.56 billion rupees, accounting for 75% of the quarterly topline.
Its clothing and accessories business Pantalon rose 18%, as it added 25 net stores to its existing network in the quarter.
“With the increase in long-term discretionary consumption, the apparel industry is poised for significant growth supported by premiumization and accelerated shift from unbranded to branded products,” the company said in a stock exchange filing.
The company’s results trail other sectoral players such as Shoppers Stop Ltd which made gains in the quarter, while Tata-backed Trent Ltd, which operates west sideposted a surging Q4 topline last month.
Aditya Birla Fashion and Retail shares closed down 0.52%.
The company posted a consolidated net loss of 1.87 billion rupees ($22.9 million) for the fourth quarter ended March 31, from a profit of 435.9 million rupees a year ago, citing initial operating losses at its TMRW unit and new ethnic businesses. It last reported a quarterly loss in June 2021.
Total expenses jumped 40% to 31.78 billion rupees, outpacing revenue growth from operations, which rose 26% to 28.80 billion rupees, the company said in an exchange filing.
Consolidated profit margin before interest, tax, depreciation and amortization (EBITDA) decreased to 8% from 17.6% in the previous year.
The company also said that on its own, sluggish sales impacted its quarterly EBITDA margin, coupled with lower retail throughput and negative operating leverage.
ABFRL has invested in a number of new businesses over the past few years, including a number of companies that are either losing money or are stable. Analysts say that the acquisition of TCNS Clothing Co Ltd in May could add to the list.
Revenue from its main unit Madura Fashion and Lifestyle, which sells western wear and casual sportswear, grew by around 30% to 21.56 billion rupees, accounting for 75% of the quarterly topline.
Its clothing and accessories business Pantalon rose 18%, as it added 25 net stores to its existing network in the quarter.
“With the increase in long-term discretionary consumption, the apparel industry is poised for significant growth supported by premiumization and accelerated shift from unbranded to branded products,” the company said in a stock exchange filing.
The company’s results trail other sectoral players such as Shoppers Stop Ltd which made gains in the quarter, while Tata-backed Trent Ltd, which operates west sideposted a surging Q4 topline last month.
Aditya Birla Fashion and Retail shares closed down 0.52%.
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