Aditya Birla Fashion Swings To Profit In December Quarter

Aditya Birla Fashion and Retail Ltd (ABFRL) on Monday reported consolidated net profit of Rs 58 crore on revenue of Rs 2,076 crore in the quarter ended December 2020. It had posted a net loss of Rs 37 crore on revenues of Rs 2,583 crore in the same quarter of last financial year. In the previous quarter og the current financial year, the company had clocked net loss of Rs 188 crore on a turnover of Rs 1,028 crore due to the Covid-19 induced countrywide lockdown.

In October-December period, the Aditya Birla Fashion posted operating profit or earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 422 crore as against Rs 423 crore in the corresponding period a year ago. Superior product offerings, tighter markdown management and relentless fixed cost controls fueled margins by 400 basis points, the company said in a press release.

The pace and extent of recovery that started with the opening of stores in second quarter was amplified on the back of a large pent up demand, strong festive spirit and a concentrated wedding season.

A combination of the above factors led to an upsurge in sales to almost double of Q2 levels, said the company. Aided by the performance of businesses along with aggressive cost and working capital control measures, ABFRL generated nearly Rs 588 crore cash during the quarte, the company added.

"ABFRL is confident that the business recovery will continue as the impact of the pandemic wears down over the next few quarters and expects to resume its consistent growth trajectory next year," it said.

The company has a network of 3,157 stores across 29,900 multi-brand outlets with 6,835 points of sale in department stores across India. It has a repertoire of market-leading brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England established for over 25 years.

ABFRL shares ended 1.29 per cent lower at Rs 165, underperforming the Sensex which rose 1.2 per cent.