Aditya Birla Fashion and Retail Ltd on Monday posted a consolidated net profit of Rs 58 crore for October-December quarter of the ongoing financial year on business recovery and cost-control measures.
The Aditya Birla Group company had posted a net loss of Rs 38 crore in the year-ago quarter, while net loss in the preceding July-September quarter stood at Rs 188 crore.
Its revenue, however, declined 20 per cent year-on-year (YoY) to Rs 2,076 crore during December quarter. Sequentially, it more than doubled from Rs 1,028 crore in September quarter.
The October-December quarter saw a significant acceleration of business recovery along sequential quarters as consumers started coming back to stores and continued to buy more online due to buoyant festive mood and visibility of a declining coronavirus infection spread, Aditya Birla Fashion said in a release.
While revenue of Pantaloons segment declined 25 per cent YoY to Rs 811 crore, that of Madura Fashion and Lifestyle fell 19 per cent to Rs 1,263 crore. On the back of strong festive and favourable wedding seasons, the lifestyle brands business recovered to 80 per cent of last year levels, while Pantaloons recovered to 75 per cent of pre-COVID levels, it said.
The company's earnings before interest, tax, depreciation and amortisation (EBITDA) was almost flat on a YoY basis at Rs 422 crore, while EBITDA margin expanded about 400 basis points to 20.3 per cent on superior product offerings, tighter markdown management and relentless fixed cost controls.
Aditya Birla Fashion said it launched more than 230 stores across businesses and formats and entered smaller towns and cities through newer brand pilots during the quarter.
"With expected cash flows from operations next quarter, coupled with equity proceeds received through the rights issue and preferential allotment to Flipkart, the company is on course to close this fiscal with a net debt reduction of 90 per cent over the start of the year," it said.
On the outlook, the company said it expects business recovery to continue as the impact of the pandemic wears down over the next few quarters.
Shares of Aditya Birla Fashion and Retail Ltd on Monday closed 1.29 per cent lower at Rs 164.60 on the BSE.