Aditya Birla Fashion and Retail (ABFRL) fell 2.32% to Rs 237.55 after the company reported a consolidated net loss of Rs 107.60 crore in Q3 FY24 as compared with net profit of Rs 11.21 crore posted in Q3 FY23.
The net profit was impacted due to increased interest costs from higher borrowings, said the firm.
Revenue from operations grew by 16.1% year on year to Rs 4,166.71 crore during the quarter.
The company reported a pre-tax loss of Rs 84.91 crore in the December quarter as against profit before tax of Rs 17.43 crore recorded in Q3 FY23.
Consolidated EBITDA for the quarter stood at Rs 605 crore, up 29% from Rs 467 crore reported in Q3 FY23. EBITDA margin improved to 14.5% during the quarter as compared to 13% registered in Q3 FY23, led by festive shift and strong focus on profitability measures.
ABFRLs strategic portfolio, built over the last few years, has continued to play a vital role in driving growth for the company, despite prolonged softness in the demand environment. Strategic cost control measures and improved gross margins across businesses have contributed to EBITDA margin expansion this quarter.
The company's revenue from lifestyle brands declined 3% YoY to Rs 1,815 core. EBITDA for Q3 was Rs 349 crore,up 10% YoY. EBITDA margin for the business expanded by around 230 bps YoY to reach 19.2%, led by better value realizations and focus on driving growth in high profitability channels. The expansion momentum for the brands continued despite tough market conditions, with a net addition of 36 stores to the network.
Pantaloons business recorded sales of Rs 1,297 crore, up 12% over last year while EBITDA grew 40% to reach Rs 235 crore. led by sharp markdown reductions and effective cost control measures. EBITDA margin expanded by 360 bps YoY to reach 18.1%.
Like-to-like (LTL) for the Pantaloons business was 3% as it continued to focus on product enhancements and driving higher conversions. Pantaloons network grew to 446 stores this quarter as the business focused on overall improvement of the health of the network.
In its outlook, ABFRL said, We remain committed to delivering exceptional consumer value and experience, strategically expanding our reach, executing with excellence, and competitively investing in our brands and capabilities. Having solidified our presence across multiple categories, segments, channels, and price points, ABFRL is well placed to leverage the next wave of growth in the segment by unlocking its various growth platforms.
Meanwhile, the companys board approved the issuance of non-cumulative non-convertible redeemable preference shares on private placement basis for an aggregate amount not exceeding approximately Rs 1.20 crore in one or more tranches on private placement basis.
The proceeds of the issue will be utilized towards redemption of existing redeemable preference shares of the company.
Aditya Birla Fashion and Retail (ABFRL) is engaged in the business of manufacturing and retailing of branded apparels and runs a chain of apparels and accessories retail stores in India. As on 31 December 2023, the company has a network of 4,753 stores across approximately 37,106 multi-brand outlets with 9,781 point of sales in department stores across India.
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