Aditya Birla Fashion Q3 PAT stands at Rs 58 cr

Aditya Birla Fashion and Retail's consolidated net profit stood at Rs 58.44 crore in Q3 December 2020 as against net loss of Rs 37.64 crore in Q3 December 2019.

Consolidated revenue from operations tumbled 19.61% to Rs 2,076.19 crore in Q3 FY21 from Rs 2,582.74 crore in Q3 FY20. Profit before tax (PBT) dropped 13.68% to Rs 79.84 crore in Q3 December 2020 as against Rs 92.50 crore in Q3 December 2019.

The quarter saw a significant acceleration of business recovery along sequential quarters; consumers started coming back to stores and continued to buy more online due to buoyant festive mood and visibility of a declining infection spread. The company launched more than 230 stores across businesses and formats, and entered smaller towns and cities through newer brand pilots. The company generated Rs 588 crore operating cash flows during the quarter. Debt is projected to be down by 90% by the end of the fiscal from the start of the financial year.

EBITDA remained almost flat at Rs 422 crore in Q3 FY21 as against Rs 423 crore in Q3 FY20. The pace and extent of recovery that started with the opening of stores in Q2 was amplified on the back of a large pent up demand, strong festive spirit and a concentrated wedding season. A combination of the above factors led to an upsurge in sales to almost double of Q2 levels.

In view of the strong recovery, and to leverage its competitive position, the company accelerated the network expansion plan by adding close to 300 stores during this fiscal so far. This clearly points to its intent to increase the penetration and reach of its brands. The quarter also witnessed the progression of its clearly articulated aspiration of building a large and formidable play in the Indian ethnic wear segment. The company signed an agreement to acquire 51% stake in "Sabyasachi", the iconic global luxury brand from India.

In its outlook, the company said it is confident that the business recovery will continue as the impact of the pandemic wears down over the next few quarters and expects to resume its consistent growth trajectory next year. The company remains focused on leveraging its strong brand portfolio, evolving its product profile in line with changing consumer preferences, and expanding its reach. On the business front, a sharp focus on cost and a persistent control on leverage will continue to guide its business model, going forward. The company, therefore, is poised to emerge stronger from the pandemic.

Shares of Aditya Birla Fashion and Retail fell 1.38% to Rs 164.45. ABFRL is part of a leading Indian conglomerate, The Aditya Birla Group. It is India's first billion-dollar pure-play fashion powerhouse with an elegant bouquet of leading fashion brands and retail formats.

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