ABFRL widens net loss to Rs 214.70 crore in Q2, FY25

08 November 2024, Mumbai

From Rs 200.34 crore in the corresponding quarter last year, Aditya Birla Fashion and Retail (ABFRL) widened its consolidated net loss to Rs214.70 crore in Q2, FY25 spanning July-Sep’24 as per recent regulatory filing.

The company’s revenue from operations grew to Rs 3,643.86 crore during the quarter, compared to Rs3,226.44 crore in the corresponding period last year. ABFRL attributed this loss to higher depreciation and amortisation expenses related to brand and retail assets, following the inclusion of TCNS Clothing. Additionally, elevated borrowings resulted in higher interest costs, impacting the company's overall financial performance.

Total expenses for the quarter stood at Rs 3,993.56 crore. Despite challenges in the consumer market, the company highlighted steady growth driven by product innovation, enhanced customer experiences, and brand rejuvenation. Emerging consumer segments led growth, while established brands continued to show positive momentum, focusing on profitability improvements.

ABFRL’s subsidiary, Aditya Birla Lifestyle Brands (ABLBL), maintained solid margins, whereas ABFRL itself exhibited a marked recovery in margins across its varied business segments.

Revenue from ABFRL’s ‘Madura Fashion & Lifestyle’ segment rose to Rs 1,861.75crore in the September quarter while Pantaloons generated a revenue of Rs 4,082.16 crore. The ethnic and other business segments of the company generated revenues of Rs 755.42 crore.

Recently, ABFRL announced the demerger of its Madura business into a standalone, publicly listed entity named ABLBL. This entity will manage the company's lifestyle brands, including Louis Philippe, Van Heusen, Allen Solly, Peter England, and Simon Carter, along with youth-centric western wear brands like American Eagle and Forever 21. ABLBL will also oversee the sportswear brand Reebok, under a long-term licensing agreement for the Indian market.

Following the demerger, ABFRL will retain its focus on the retail sector through its Pantaloons and Style Up stores, in addition to managing its ethnic brand portfolio, which includes designer labels such as Sabyasachi, Shantanu & Nikhil, House of Masaba, and Tarun Tahiliani. The portfolio will also feature premium ethnic wear brands like Jaypore, Tasva, and TCNS.

As of September 30, 2024, ABFRL’s network comprised 4,538 stores spread across approximately 37,952 multi-brand outlets, with 9,047 points of sale in department stores throughout India.

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