BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Aditya Birla Fashion and Retail Ltd. continued to report weak profitability as Ebitda declined 19% YoY to Rs 3.2 billion in Q2 FY24 (10% miss). Ebitda was dragged down by weaker like-for-like in retail and pantaloons, lower gross margins and subsidiary losses.
Consolidated revenue grew modestly by 4% YoY to Rs 32 billion (in line), mainly driven by the contribution from new business as retail channel and Pantaloons reported LFL declines of 12%/15% due to a shift in the festive season.
Aditya Birla Fashion's persistent demand weakness across the value and premium categories and a shift in the festive and wedding seasons impacted revenue growth.
However, demand is expected to revive in Q3 FY24. Slower revival of demand within the mass segment and investments in new businesses could put pressure on earnings for the next four-six quarters.
Accordingly, we lower our FY24/FY25 Ebitda estimates by 10%/8% and build a compound annual growth rate of 12%/6% in revenue/Ebitda over FY23-25E. Retain 'Neutral' rating.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.