Aditya Birla Fashion Q4 Results Review - Growth Led By Loss-Making Businesses: Systematix

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Aditya Birla Fashion and Retail Ltd. earnings missed estimates given higher losses in the fast-growing new businesses. Overall revenue growth of 18.3% seems strong in the currently muted demand environment. The apparel market remained subdued impacted by fewer weddings, weak winters and sluggish online sales. Among new businesses, Ethnic grew 2.7 times versus last year, TMRW sales doubled while Reebok saw strong growth of 29%. The core businesses of Lifestyle/ Pantaloons grew 2%/ 10% YoY respectively. LTL growth for Pantaloons stood at 1% while lifestyle was flattish. Innerwear business grew 12% YoY offsetting the weakness in athleisure. Standalone revenue growth stood at 8% YoY. Gross margin remained flat while Ebitda margin expanded 163 bps YoY to 8.3% led decline in employee cost (-35 bps), rent (-22 bps), other expenses (-100 bps). Lifestyle business Ebitda margin expanded 484 bps to 19.5% while Pantaloons operating margin grew 275 bps to 10.4% led by lower discounting and significant store rationalisation. Adjusted loss stood at c. Rs 2.7 billion due to increase in depreciation (+30.7% YoY) and high interest cost (+65.6% YoY) due to debt taken to fund the TCNS acquisition. Company closed net 29 Pantaloons stores and 60 Madura stores during the quarter..Click on the attachment to read the full report:.Aditya Birla Capital Infuses Rs 300 Crore In Housing Finance Arm For Growth.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Aditya Birla Fashion Q4 Results Review - Growth Led By Loss-Making Businesses: Systematix

Lower discounting and store rationalisation drive up core business margins

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