Mumbai-headquartered fashion retail company Aditya Birla Fashion and Retail Limited on Monday posted a consolidated net loss of Rs 187 crore for the fourth quarter ended March 2023 (Q4FY23), as compared to a profit of Rs 43.6 crore, in the corresponding period of last fiscal. Shares of Aditya Birla Fashion and Retail Ltd were trading 1.02 percent lower at Rs 189 apiece on the BSE in trade today.

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Revenue from operations of ABFRL, previously known as Pantaloons Fashion & Retail Limited prior to its acquisition by the Aditya Birla Group, climbed 26 percent year-on-year to Rs 2,880 crore for the quarter under review despite a challenging consumption environment. It was Rs 2,283 crore in the year-ago period of last year.

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ABFRL's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin reduced to 6.7 percent in Q4 from 16.3 percent in the March quarter of FY22, while the consolidated quarterly EBITDA stood at Rs 193 crore, down 48 percent from Rs 373 crore year-on-year.

The fashion retail company closed the quarter with net debt of Rs 1,422 crore, primarily on account of continued investments in new growth ventures.

The firm's business growth continued to be led by aggressive offline expansion.

a. Branded business network added 104 stores on a net basis in Q4.

i. TASVA added 19 new stores to the network.

b. Pantaloons added net 25 stores to its network this quarter.

As the economic situation recovers, the company said it remains focused on its clearly articulated strategy of building strong, timeless brands and managing the businesses with flexibility and agility. With a long-term rise in discretionary consumption, the apparel industry is primed for significant growth bolstered by premiumisation and an accelerated shift from unbranded to branded products.

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ABFRL’s strong repertoire of well-known brands, combined with a sharp focus on product excellence, customer centricity, sustainability, and distribution expansion, gives it the confidence to deliver consistent and sustainable growth.

First Published:May 22, 2023 3:30 PM IST