Aditya Birla Fashion and Retail Ltd (ABFRL), one of India’s top apparel and retail giants reported its first quarterly loss in nearly 2 years. It is mainly due to surging expenses outweighed demand for its apparel and lifestyle products.
It observed a consolidated net loss of Rs. 194.54 crore for the Q4, FY 2022-23 compared to a consolidated net profit of Rs. 31.90 crore during the same period of FY 2021-22. It last reported a quarterly loss in June 2021. Though its total income increased 26.2 per cent to Rs. 2,916.13 crore during Q4 FY ’23 as against Rs. 2,309.55 crore in the corresponding quarter of the previous fiscal.
Its total expenses rose to Rs. 3,177.64 crore in Q4 FY ’23 as compared to Rs. 2,266.06 crore in the same quarter of the previous fiscal.
In Q4, the company’s e-commerce sales grew 77 per cent YoY driven by effective B2B partnerships and brand.com. Now the e-commerce yearly revenue is more than 1300 crore.
The company faced initial operating losses in unit TMRW and new ethnic businesses.
Pantaloons, the clothing and accessories retail business of the company, rose 18 per cent in Q4, FY 2022-23 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 premiumization and an accelerated shift from unbranded to branded products,” said the company in an exchange filing.
With a long-term rise in discretionary consumption, the apparel industry is primed for significant growth supported by premiumisation and an accelerated shift from unbranded to branded products, it said in a post-earnings statement.
