ABFRL Q3 results: Firm posts highest-ever quarterly net profit at Rs 197 cr

The retail unit of Aditya Birla Group, Aditya Birla Fashion and Retail Ltd (ABFRL) on Friday reported a consolidated net profit at Rs 197 crore for the quarter ending 31 December, 2021, its highest-ever quarterly profit after surging 237 per cent year-on-year. The company had posted a net profit of Rs 58 crore in the year-ago period. 

Moreover, ABFRL's revenue from operations also grew 44 per cent to Rs 2,987 crore, posting another quarterly high from Rs 2,076 crore in the same quarter last fiscal, the firm said in a regulatory filing.

The company's earnings before interest, taxes, depreciation, and amortization or EBITDA for the third quarter jumped 44 per cent YoY to Rs 609 crore, while EBIDTA margin expanded 400 basis points to 20.4 per cent versus pre-COVID levels on "sustained cost controls."

During the quarter in review, the company said that it has launched more than 200 new stores across businesses and formats.

Segment-wise results:

Lifestyle brands: Revenues grew 55 per cent YoY and EBITDA surged 80 per cent over the same quarter in the previous fiscal.

Pantaloons: Sales grew 31 per cent YoY; e-commerce channel grew 67 per cent YoY

Active Athleisure Innerwear: Revenue of 1.5x over pre-COVID levels

Ethnic business: Currently operating at an annual run rate of Rs.400 Cr.

Further, ABFRL has also announced setting up a platform to foray into the Direct-to-Consumer (D2C) business. The plan was approved unanimously in a board meeting today. The company will set up a new subsidiary towards building a portfolio of new-age, digital brands across categories such as beauty, fashion and other allied lifestyle segments. 

Shares of ABFRL on Friday traded 2.76 per cent lower at Rs 295.75 apiece on BSE during late trade.