Aditya Birla Fashion posts healthy Q2FY20 numbers amid rough market

Aditya Birla Fashion and Retail has posted quite strong numbers for the quarter ended September 30, 2019.

Its consolidated revenue for Q2FY20 came in at Rs. 2,307.78 crores against Rs. 2,007.34 crores in the corresponding quarter last year, registering a 15 per cent Y-o-Y increase. The EBITDA for the quarter grew by 137.5 per cent Y-O-Y to Rs. 339.22 crores from Rs. 142.8 crores in Q2FY19, with a corresponding margin expansion of 759 bps. The EBITDA margin for Q2FY20 stood at 14.7 per cent. The net loss for the quarter was reported at Rs. 2.35 crores against the net profit of Rs. 42.73 crores in the corresponding quarter last year.

In terms of the segmental performance, the Madura segment, which include Lifestyle brands (Louis Philippe, Van Heusen, Allen Solly, and Peter England) and Fast Fashion brands (Forever 21 and People), rose by 16 per cent Y-O-Y. Lifestyle brands reported a 15 per cent jump in sales, thanks to the exceptional growth in its new initiatives for its women and kids wear businesses. Fast Fashion continues to operate on a calibrated business model. While People brand is gradually moving into Pantaloons, Forever 21 continues to run prudent operations, with a focus on enhanced profitability.

The innerwear business progressed on its aggressive growth trajectory, with continued launch of newer categories and styles, along with the expansion of its distribution network, which stood at ~18,000 outlets at the end of this quarter.

Pantaloons recorded a robust 16 per cent growth on the back of strong LTL of more than 10 per cent and rapid store expansion, despite difficult market conditions. This was largely driven by a superior product offerings and intensified brand building.