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India’s Aditya Birla Fashion and Retail records 5X surge in profits

by Apparel Resources News-Desk

15-May-2018  |  2 mins read

Aditya Birla Fashion and Retail
Image Courtesy: madurafnl.com

India-based Aditya Birla Fashion and Retail Ltd. (ABFRL) has announced its financial results for the fourth quarter ended in March 2018.

During the quarter under review, the fashion retail firm reported a more than five-fold increase in net profit to Rs. 113.12 crores as against Rs. 21.83 crores last year. A deferred tax gain of Rs. 68.82 crores reportedly helped the company to note such a massive growth.

ABFRL, formerly known as Pantaloons Fashion, noted a total income of Rs. 1,764.35 crores in the quarter under review as compared to Rs. 1,642.48 crores during the corresponding period of last fiscal.

However, the company has made it clear that revenue from operations for the reporting period (quarter and year) should not be compared due to the implementation of GST (Goods and Services Tax) last year.

Notably, the company owns fashion brands such as Van Heusen, Pantaloons, Louis Philippe, Peter England and Forever 21 under its Madura Fashion & Lifestyle arm. Its products are retailed through 2,465 brand stores, 4,982 multi-brand outlets and more than 4,000 points of sale in department stores across the country.

Madura Fashion & Lifestyle’s standalone revenue for the quarter stood at Rs. 1,161 crores as against Rs. 1,045 crores last year (up 11.1%). In FY 2018, revenues remained Rs. 4,468.8 crores against Rs. 4,114.3 crores in FY 2017 (up 8.6%).

The company is further planning to continue to tap new segments to expand its presence, it stated in the statement issued. Growth in lifestyle brands, brand-building and product innovations will further be on ABFRL’s growth chart.

ABFRL will also open a few Pantaloons outlets to boost overall profitability. In the previous FY, 66 new stores were opened. Pantaloons recorded Rs. 641.3 crores in revenues during the quarter versus Rs. 585.7 crores last year (up 9.5%). In FY 2018, revenues for the brand were Rs. 2,861.5 crores against Rs. 2,552.3 crores in FY 2017 (up 12.1%).