Aditya Birla Fashion & Retail reports net loss of Rs 187 crore in Q4

The company's consolidated revenue from operation rose by 26.14 per cent to Rs 2,880 crore for the March quarter as compared to Rs 2,283 crore in the year-ago period

BS Web Team New Delhi
Aditya Birla Fashion & Retail (ABFRL)

TCNS Clothing has ethnic brands W, Aurelia, Wishful, Folksong and Elleven

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Aditya Birla Fashion and Retail (ABFRL), on Monday, reported consolidated net loss of Rs 187 crore for the March quarter. The company reported a net profit of Rs 43.59 crore a year ago.
The company’s consolidated revenue from operation rose by 26.14 per cent to Rs 2,880 crore for the March quarter as compared to Rs 2,283 crore in the year-ago period.

Total expenses jumped 40 per cent to Rs 3,178 crore, outpacing the growth in revenue from operations, which was up 26 per cent at Rs 2,880 crore, the company said in an exchange filing.

Consolidated margins on earnings before interest, taxes, depreciation and amortisation (EBITDA) contracted to 8% from 17.6 per cent a year earlier.
The company also said that on a standalone basis, sluggish sales impacted its quarterly EBITDA margins, coupled with lower retail throughput and negative operating leverage.

ABFRL has invested in a number of new businesses over the past few years, including a number of enterprises that are losing money or are still stabilising. Analysts said that the acquisition of TCNS Clothing Co Ltd in May might add to the list.
Revenue from the retailer's key Madura Fashion and Lifestyle unit, which sells western wear and athleisure casual sports clothing, grew about 30 per cent to Rs 2,156 crore, contributing 75 per cent of the quarterly topline.

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Its clothing and accessories business, Pantaloons rose 18 per cent, as it added a net 25 stores to its existing network in the quarter.
"With a long-term rise in discretionary consumption, the apparel industry is primed for significant growth bolstered by premiumisation and an accelerated shift from unbranded to branded products," said the company in an exchange filing.

The company's results trailed other sectoral players like Shoppers Stop Ltd which swung to profit in the quarter, while Tata-backed Trent Ltd, which operates Westside, posted a soaring Q4 topline last month.
Shares of Aditya Birla Fashion and Retail closed down 0.52 per cent.

Earlier this month, ABFRL has entered into a definitive agreement to acquire controlling stake (51 per cent) in TCNS Clothing for Rs 1,650 crore.

The transaction will be carried out through the acquisition of the founding promoter’s stake through a sale and purchase agreement and a conditional public open offer followed by a merger between the two entities.
The value of the promoter stake and open offer consideration for TCNS is Rs 1,650 crore for 51 per cent stake, ABFRL said in a press release.

“As part of the transaction, ABFRL will make a conditional open offer to acquire up to 29 per cent stake at Rs 503 per share from public shareholders and acquire the remaining stake from the founder promoters to reach an overall shareholding of 51 per cent in TCNS,” ABFRL said.

(With inputs from Reuters)

Aditya Bir. Fas.

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First Published: May 22 2023 | 3:35 PM IST

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