Aditya Birla Fashion and Retail Ltd swung back into black in the July-september quarter of 2021 on the back of a strong rebound in the business, according to a regulatory filing.
The company posted a net profit of Rs 5.09 crore for the quarter ended in September 2021 against a net loss of Rs 188.22 crore during the July-September quarter of the previous fiscal.
Its revenue from operations jumped nearly twofold to Rs 2,054.34 crore during the quarter under review as against Rs 1,028.13 crore in the corresponding period of the previous fiscal, the company said in a regulatory filing.
ABFRL, India’s first billion-dollar pure-play fashion powerhouse, witnessed a “strong business rebound with 90 per cent recovery over pre-COVID levels,” the company said in a post earning statement.
ABFRL’s total expenses were at Rs 2,069.96 crore, up 52.56 per cent in Q2/FY 2021-22, as against Rs 1,356.81 crore.
Its revenue from ‘Madura Fashion & Lifestyle’ segment was up over twofold to Rs 1,449.05 crore as against Rs 715.33 crore of the corresponding quarter.
“Its retail channel had industry-leading growth of 25 per cent over pre-COVID levels. The business continued to perform exceptionally in e-commerce with a 100 per cent growth over the previous year. Also noteworthy is that its own e-commerce grew 2.5x during this period,'' it said.
While Pantaloons’ revenue was up 80.49 per cent to Rs 665.22 crore as against Rs 368.57 crore.
“The prolonged restrictions on shopping malls which constitute a large share of the store network impacted the recovery,” it said.
The quarter began with gradual recovery from COVID-19 second wave, with relaxed mobility restrictions and aggressive vaccination drive across the nation, sharply changing the consumer sentiment, said ABFRL.
“This led to a strong recovery in store footfalls. Retail channel operations saw a rapid growth in demand as the national infection caseload came down. During this period, alternate channels of sales like e-commerce and omnichannel retail performed very well,” it said adding business has consistently shown strong L2L growth from the past four quarters.
Over the outlook, ABFRL said encouraged by the strong rebound, it will accelerate its growth trajectory now, driven by aggressive expansion in the product portfolio, entry into newer consumer segments and network expansion, both in existing and newer markets.
“Given the underlying business fundamentals, the enhanced digital capabilities and the balance sheet strength, the company is well poised to embark on a new wave of growth and create value for all stakeholders,” it said.
ABFRL, part of the Aditya Birla group, has an elegant bouquet of leading fashion brands and retail formats. The company, which has a repertoire of leading brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England besides fast fashion store Pantaloons, has a network of 3,264 stores across approximately 26,841 multi-brand outlets as on September 30, 2021.
Shares of Aditya Birla Fashion and Retail Ltd on Wednesday closed at Rs 283 on BSE, down 1.79 per cent from the previous close.
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