Aditya Birla Fashion Retail Ltd (ABFRL) on Thursday (November 9) reported a net loss of ₹200 crore for the second quarter that ended September 30, 2023, due to sluggish consumption.
In the corresponding quarter last year, Aditya Birla Fashion Retail posted a net profit of ₹29 crore, the company said in a regulatory filing.
The company's revenue from operations increased 4.9% to ₹3,226 crore as against ₹3,075 crore in the corresponding period of the preceding fiscal. The muted revenue growth was on account of sluggish market conditions and the shift of the festive period to Q3, it said.
At the operating level, EBITDA declined 18.8% to ₹323 crore in the second quarter of this fiscal over ₹398 crore in the corresponding period in the previous fiscal.
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EBITDA margin stood at 10% in the reporting quarter as compared to 13% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortization.
The company has completed the acquisition of TCNS Clothing Co Ltd, which is now a 51% subsidiary of ABFRL. The acquisition addresses ABFRL’s biggest portfolio gap by adding a premium ethnic womenswear segment to its product range and with brands like W, Aurelia, Wishful, Elleven & Folksong, Company now offers a complete range of ethnic wear.
Outlook
In the face of persistent market headwinds, ABFRL has navigated another quarter, marked by subdued discretionary spending and a slow rural recovery affecting the value and masstige segments. Despite these market conditions, ABFRL remains steadfast in its commitment to its strategic vision.
The results came after the close of the market hours. Shares of Aditya Birla Fashion Retail Ltd ended at ₹215.10, down by ₹3.15, or 1.44 percent on the BSE.
First Published: Nov 9, 2023 10:45 PM IST
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