Aditya Birla Fashion and Retail (ABFRL) on Wednesday saw June-quarter net loss widen to Rs 161.4 crore versus the year-ago period when it posted a net loss of Rs 144 crore. The earnings came amid a muted retail environment, led by a consumption slowdown and lower wedding days. Bloomberg consensus estimates had pegged net loss at Rs 214 crore for the first quarter (Q1).
The company’s revenue from operations increased 7.3% to Rs 3,428 crore in Q1 as against Rs 3,196 crore in the corresponding period of the preceding fiscal. This was below Bloomberg consensus estimates which had pegged revenue at Rs 3,546 crore for the period.
At the operating level, earnings before interest tax depreciation and amortisation (Ebitda) surged 22.6% year-on-year to Rs 358 crore in the first quarter of the ongoing fiscal, which compares favourably with street estimates of Rs 319 crore for the period.
Ebitda margin stood at 10.5% in the reporting quarter compared to 9.1% in the corresponding period last year.
In Q1, the lifestyle brands of ABFRL reported a revenue of Rs 1,482 crore, due to a lean wedding season. The Ebitda for this segment was Rs 279 crore, with a margin expansion of 50 bps, reaching 18.8%, its results showed.
The Pantaloons segment posted quarterly sales of Rs 1,101 crore, growing 5% compared to last year. Like-for-like growth for the quarter was 2%, and Ebitda grew 43% year-on-year with a margin expansion of 470 bps, reaching 17.6% in Q1.
Emerging growth businesses, which include youth western wear, innerwear & athleisure, and sportswear segments, posted a 5% growth overall, moving into profitability, the company said.
The private label portfolio, driven by on-trend merchandise and improved design aesthetics, saw its share reach 66% this quarter. With sustained improvement in operational metrics, the Style Up brand will continue to evaluate expansion opportunities, the company added.