ABFRL Posts Net Loss at Rs 214.7 Crore in Sep Qtr

Aditya Birla Fashion and Retail Ltd has reported a consolidated net loss of Rs 214.70 crore in the September 2024 quarter.

The company had posted a net loss of Rs 200.34 crore during the July-September quarter a year ago, according to a regulatory filing by Aditya Birla Fashion and Retail Ltd (ABFRL) late Thursday.

Its revenue from operations was Rs 3,643.86 during the quarter under review. The same stood at Rs 3,226.44 crore in the year-ago period.

"Consolidated net profit was impacted on account of higher depreciation/amortisation for brand & retail assets due to the inclusion of TCNS (clothing company) and higher interest costs on account of elevated borrowings," ABFRL said in its earnings statement.

The consolidated financial results for the quarter ended September 30, 2024, are "not comparable with previous quarters" pursuant to the amalgamation of TCNS Clothing and acquisition of Goodview Fashion Private during the current quarter, the Aditya Birla group firm said.

Its total expenses were Rs 3,993.56 crore in the September quarter.

"Businesses achieved consistent growth this quarter, despite a subdued consumption environment, driven by sustained focus on driving product enhancements, elevated customer experiences and brand refresh," ABFRL said.

Growth was largely led by newer businesses operating in emerging consumer segments, while its established brands continued with their growth trajectory with a clear focus on improved profitability.

"While ABLBL (Aditya Birla Lifestyle Brands Ltd) reported sustained margins, the demerged ABFRL posted a sharp recovery in margins across its constituent businesses," it said.

Its revenue from the 'Madura Fashion & Lifestyle' segment was Rs 1,861.75 crore in the September quarter.

While Pantaloons' revenue was Rs 4,082.16 crore and Rs 755.42 crore from its Ethnic and Other business.

It has recently announced the de-merger of Madura business into a separately listed entity named ABLBL.

ABLBL will have its lifestyle brands business as Louis Philippe, Van Heusen, Allen Solly, Peter England, Simon Carter and youth western wear brands such as American Eagle & Forever 21.

It will also have sportswear brand Reebok business, for which it has a long-term licensing for India market.

ABFRL will have its retail business under Pantaloons and Style Up along with a host of ethnic brands, which it owns such as designer-led brands of Sabyasachi, Shantanu & Nikhil, House of Masaba and Tarun Tahiliani. It will also have premium ethnic wear brands of Jaypore, Tasva & TCNS portfolio.

As of September 30, 2024, ABFRL has a network of 4,538 stores across approximately 37,952 multi-brand outlets with 9,047 points of sales in department stores across India.

It has a repertoire of brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England. It operates fashion retail store Pantaloons. Besides, it is a retailer of international brands such as Ralph Lauren, Hackett London, Ted Baker, Fred Perry, Forever 21, American Eagle, Reebok, Simon Carter and Galeries Lafayette.

Shares of Aditya Birla Fashion and Retail Ltd on Friday were trading at Rs 303.25 apiece on the BSE, down 2.16 per cent.