Aditya Birla Fashion and Retail (ABFRL) on Tuesday reported a six-fold rise in its comparable net profit at `39 crore for the quarter ended June 2019. The reported net profit was at `22 crore. Revenue from operations during the quarter increased 8% to `2,065 crore.
Earnings before interest, tax, depreciation and amortisation (Ebitda) increased 28% to `156 crore. Ebitda margin improved to 7.6% compared to 6.4% in the same period last year.
The Fast Fashion segment continues to undergo a business model correction, the firm said. The segment witnessed a 10% decline in revenue at `80 crore in Q1FY20.
The company’s lifestyle brand sales grew by 6% year-on-year to `1,006 crore, backed by robust performance in women’s wear and rapid growth of Peter England in small towns. The segment Ebitda posted a growth of 22%.
Pantaloons reported a 9.5% rise in sales at `890 crore in Q1FY20. The rise was mainly backed by improvement in product value equation and consistent investments behind the brand.
Other business segment that comprises the innerwear business (under brand Van Heusen) and global brands grew aggressively.
“Our innerwear business continues to grow rapidly (67% y-o-y) on the back of distribution expansion coupled with strong acceptance of the products amongst consumers. Our global brands grew with both multi- and mono-brands formats doing well with consumers,” said Ashish Dixit, managing director at ABFRL.