Earnings|Aditya Birla Fashion and Retail Ltd (NSE:ABFRL): Q3FY23 Results Out; Total Income rise 20% YoY

Aditya Birla Fashion and Retail Ltd (NSE:ABFRL) is a leading fashion and lifestyle company in India. The company offers a wide range of products including apparel, footwear, accessories, and more through its various brands like Louis Philippe, Allen Solly, Van Heusen, Peter England, and more. It has a strong retail presence with over 3,000 stores across the country. The company has also expanded into the e-commerce space with its online platform, abof.com. In addition, Aditya Birla Fashion and Retail Ltd has strategic partnerships with global brands such as Ralph Lauren, Ted Baker, and more.

Aditya Birla Fashion and Retail Ltd. (ABFRL) reported a 17% YoY growth in standalone revenue to Rs 33,589 million for Q3FY23, driven by a 19% growth in its lifestyle business. The QoQ revenue growth was 14%. However, the EBITDA margin for Q3FY23 stood at 13.4%, down from 19.3% YoY and 15% QoQ, mainly due to a 2.3x increase in marketing spend. The gross margin remained stable at 53.36%, with a higher share of premium products. The company’s EBITDA for all its businesses, including Lifestyle, Others (athleisure and innerwear), and Pantaloon, dropped by 19% YoY to Rs 4,510 million, mainly due to the higher marketing spend on lifestyle and newer businesses. The PBT for Q3FY23 dropped by 71% YoY to Rs 729 million, primarily due to the drop in EBITDA and normalized rentals leading to higher depreciation and interest cost. The adjusted PAT stood at Rs 569 million, down 70% YoY and 29% QoQ.

In terms of network expansion, the company added 245 stores to its branded business network, including newly integrated Reebok stores, and added 10 new stores to the Pantaloons network. The ethnic business added 15 new stores, and the small-town format within Lifestyle brands now has a network of 550 stores. Additionally, the company is executing its long-term strategy to play across emerging consumer spaces, with the TMRW partnership with eight digital-first brands, and the integration of six brands into its portfolio. The company’s e-commerce sales grew 33% YoY, and its omnichannel coverage now spans 2,350 stores. Overall, ABFRL continues to focus on its digital and omnichannel strategies to drive business growth.