Aditya Birla Fashion and Retail Q4 loss widens to ₹266 crore, revenue jumps 18%

Revenue increased 18% year-on-year (YoY) to ₹3,407 crore during the quarter while earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 63% to ₹377 crore.

The firm witnessed an improvement in its EBITDA margin to 11.1% as compared to 8% in the same period of the previous fiscal.

For the full fiscal year 2024, Aditya Birla Fashion and Retail witnessed a net loss of ₹736 crore as compared to a net loss of ₹59 crore in the previous fiscal. Revenue rose 13% YoY to ₹13,996 crore during the year while EBITDA increased 5% to 1,703 crore. The EBITDA margin fell to 12.2% in FY24 as compared to 13% in the previous fiscal.

The company pointed out that net profit for the quarter and the year was impacted by increased interest costs due to elevated borrowings compared to last year, primarily because of the TCNS acquisition.

The Pantaloons segment posted quarterly sales of ₹895 crore, representing a growth of 10% YoY. The Lifestyle brands — that include brands like Louis Phillippe, Van Heusen, Allen Solly, Peter England, and Simon Carter —grew 2% YoY to reach ₹1564 crore.

The firm had recently announced the de-merger of Madura business into a separately listed entity named Aditya Birla Lifestyle Brands (ABLBL). The firm said the strategy is to enable the creation of two independent growth engines with distinct capital structures and parallel value creation opportunities and to allow the participation of the right set of investors and strategic partners, aligned with the appropriate risk profiles of the two companies and their differentiated business models.

The company pointed out that with consumption remaining sluggish over the past six to eight quarters, it has sustained its focus on its long-term strategy to build strong brands for its consumers while operating with flexibility and agility.

“The apparel market remains one of the most significant segments in the discretionary consumer space, where the organised part of the market is set to grow at a double-digit compounded annual growth rate (CAGR) over the next few years,” it guided.

Shares of the company have risen nearly 28% since the beginning of the year. The stock has gained over 46% in the last one year.