ABFRL reports strong business rebound in Sept quarter; EBITDA rises 150%

Aditya Birla Group’s fashion retail arm Aditya Birla Fashion and Retail Limited (ABFRL) reported a strong business rebound in the September quarter with 90 per cent recovery over pre-COVID-19 levels (Q2 FY 20). ABFRL’s consolidated revenue almost doubled to Rs 2054 crore from Rs 1028 crore last year.
 
The fashion and retail major’s EBITDA went up by ~150 per cent to Rs 338 crore from Rs 136 crore in the previous quarter on robust demand recovery, tight cost controls and rapid growth in e-commerce sales. ABFRL said that it reported a reduction in debt from Rs 1,200 crore in Q1 FY22 to Rs 873 crore in Q2 FY22.
 
“Despite aggressive growth plans across brands and channels, debt is expected to stay range bound at these levels for the year”, said the company in an official statement.

The statement further read that ABFRL’s own websites and third-party marketplaces both performed well and strengthened omni-channel coverage across businesses with over 30 per cent stores now being omni-enabled.
 
Lifestyle brands owned by the group also reported strong numbers with sales rising from Rs 531 crore in the previous quarter to Rs 1,156 crore in the current quarter. ABFRL’s retail channels reported a growth of 25 per cent over pre-COVID-19 levels (Q2 FY 20).

Pantaloons recorded a recovery of 73 per cent over pre-COVID-19 levels (Q2 FY 20) whereas the sales rose by 80 per cent year-on-year (YoY) to Rs 665 crore versus Rs 369 crore in FY21. E-commerce sales also went up drastically as the daily traffic on pantaloons.com increased 28 per cent in this quarter.
 
Other businesses of the brand like active athleisure innerwear, youth western wear, super premium brands and ethnic wear also had some great numbers to boast of. The active athleisure innerwear segment recorded a 41 per cent rise in revenue over the quarter whereas super premium brands portfolio continued its upward trajectory and reported a growth of ~60 per cent over pre-COVID-19 level (Q2 FY 20).  The company's luxury retail arm, TheCollective.in, continued with its impressive stride in this quarter.
 
Youth western wear (Forever 21 and American Eagle) and ethnic wear segments (Marigold Lane) also fared well during this quarter.

According to ABFRL, gradual recovery from the second COVID-19 wave with relaxed mobility restrictions and aggressive vaccination drive across the country changed the consumer sentiment sharply, leading to recovery in store footfalls.
 
“Encouraged by the strong rebound, the company will accelerate its growth trajectory now, driven by aggressive expansion in the product portfolio, entry into newer consumer segments and network expansion, both in existing and newer markets. Given the underlying business fundamentals, the enhanced digital capabilities and the balance sheet strength, the company is well poised to embark on a new wave of growth and create value for all stakeholders,” the company said on its future plans.

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