Aditya Birla Fashion posts net loss of Rs 162 cr in Q1, revenue up 11% on strong pick-up in new businesses

The growth in quarterly revenue was driven by a strong pick-up in new businesses and consistent performance from established businesses, despite challenging market conditions.

Operating profit, calculated as EBITDA, tumbled 37.6 percent to Rs 292.3 crore as against Rs 468.5 crore in the year-ago period. Margins came in at 9.1 percent versus 16.3 percent on-year.

"ABFRL's store network now 4000+ large and continues to expand," the company said in a statement. The branded business network has added 28 stores on a net basis in Q1. Its ethnic businesses have added 12 stores to the network, while Pantaloons added net 3 stores to its network this quarter.

The company anticipates a rebound in discretionary spend with the onset of the festive season, propelling its growth trajectory further in the second half.

"ABFRL remains committed to enhancing the value proposition for its customers along with persistently investing in building brands and improving operational efficiency. We remain focused on pursuing our long-term strategic agenda through expansion into newer markets, diversification across various segments and categories, and ensuring an elevated shopping experience to our customers," it said.

With a positive outlook on the growth prospects of both the Indian economy and the fashion apparel sector, the company said it is determined to leverage its robust brand portfolio to drive consistent, sustainable growth.

After the Q1 results announcement, shares of ABFRL plunged 6 percent to settle at Rs 207.75 apiece on the NSE. On a year-to-date basis, the stock is down 27.48 percent, while it fell 24.45 percent in the last one year.