Aditya Birla Fashion and Retail declined 2.73% to Rs 105.1 after the company reported a consolidated net loss of Rs 146.59 crore in Q4 March 2020 as against a net profit of Rs 202.64 crore posted in Q4 March 2019.Net sales declined 4.4% to Rs 1831.88 crore in Q4 March 2020 from Rs 1915.31 crore posted in Q4 March 2019. The company reported a pre tax loss of Rs 185.82 crore in Q4 March 2020 as against a profit before tax of Rs 30.52 crore in Q4 March 2019.
On a standalone basis, the company reported a net loss of Rs 140.29 crore in Q4 March 2020 as against a net profit of Rs 202.64 crore in Q4 March 2019. Net sales fell 5.1% to Rs 1817.43 crore in Q4 March 2020 over Q4 March 2019.
Earnings were impacted by the COVID-19 pandemic early March leading to movement restrictions and heightened sense of insecurity among people. Aditya Birla Fashion reported sales Loss due to COVID impact at Rs 339 crore leading to a gross margin loss of Rs 200 crore in Q4 March 2020. Consumers started to stay away from all non-essential shopping. This dramatically reduced the footfalls at stores across the country leading to a steep decline in sales from the second week of March. Eventually, the Company had to shut down its entire retail network through the month in line with the nationwide lockdown announced by the Government of India. This unprecedented disruption had an adverse impact on the quarterly performance, and led to a decline in sales and profits for the fourth quarter over the same period last year.
Lifestyle brands reported a 5% drop in sales in Q4 March 2020 to Rs 1072 crore from Rs 1132 crore posted in the same period last year. The segment witnessed a decline in EBITDA owing to the drop in sales in the month of March due to COVID related disruptions. Fast Fashion segment continued with its focus around improving operating performance. 'People' got fully transitioned into Pantaloons while Forever 21 restructured the commercial arrangement with its parent. The other businesses portfolio grew rapidly driven by consistent performance of its constituent sub-segments viz. innerwear and global brands.
Meanwhile, the company announced that the board has approved Rs 1000 crore rights issue which will strengthen the balance sheet and is in line with long term growth aspirations.
Aditya Birla Fashion and Retail is a premium clothing retail chain.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)