Aditya Birla Fashion Q2 Results: Net Loss Widens, Revenue Meets Estimates
Aditya Birla Fashion and Retail Ltd. reported a 13% revenue rise in Q2 FY25 but faced a widened net loss due to higher depreciation, amortisation, and interest costs following TCNS integration.
Aditya Birla Fashion and Retail Ltd.'s net loss widened in the second quarter of fiscal 2025, even as income growth met estimates.
The consolidated net loss of the Aditya Birla Group company stood at Rs 214.70 crore in the July-September quarter, compared to a loss of Rs 200 crore in the same period last year, according to an exchange filing on Thursday. Analysts' estimates compiled by Bloomberg projected a loss of Rs 114 crore.
The company said the bottomline was impacted on account of higher depreciation and amortisation for brand and retail assets due to inclusion of TCNS and higher interest costs on account of elevated borrowings.
Revenue rose 13% to Rs 3,643.86 crore from Rs 3,226.44 crore in the year ago period. The Bloomberg estimate was Rs 3,624 crore.
On the operating side, Ebitda jumped 12% to Rs 361.3 crore, meeting the Bloomberg estimate of Rs 362 crore. Likewise, a margin of 9.9% met estimates of 10%.
ABFRL Segment-Wise Performance
Income from lifestyle brands grew 3% to Rs 1,636 crore, with an operating margin of 18.4%. Emerging growth businesses, which include youth western wear, innerwear and athleisure, and sportswear segments, posted 7% growth at an overall level, with the segment posting another quarter of positive Ebitda, according to a press release.
Pantaloons segment posted quarterly sales of Rs 1,082 crore, growing 3% year-on-year. Led by gross margin improvement, EBITDA grew 65% and margin expanded by 560 bps to reach 15% in the second quarter.
Ethnic businesses income rose 215% to Rs 144 crore.
The company has a network of 4,538 stores across 37,952 multi-brand outlets with 9,047 points of sale in department stores across India, as of Sept. 30.
Shares of Aditya Birla Fashion and Retail closed 1.2% lower at Rs 296.6 apiece, compared to a 1.16% decline in the benchmark Nifty 50.
The stock has risen 33% so far this year and 35% in the last 12 months.
Five out of the 23 analysts tracking ABFRL have a 'buy' rating on the stock, eight recommend a 'hold' and 10 suggest a'sell', according to Bloomberg data. The average 12-month analyst price target of Rs 307 implies a potential upside of 3.5%.
