India’s ABFRL revenue increased 25% from pre-COVID levels in Q4 FY22

Aditya Birla Fashion and Retail Limited (ABFRL), part of India’s leading conglomerate Aditya Birla Group, reported a 25% increase in revenue in the fourth quarter (Q4) of fiscal year 2022 (FY22) ended March 31, 2022, compared to pre-COVID levels as well as over the past fiscal year. The company experienced 50% year-over-year (YoY) growth in March 2022, offsetting the impact of the third wave of COVID in the first half of the fourth quarter.

ABFRL’s consolidated EBITDA for the fourth quarter increased by 58% year-on-year to ₹401 crore. Strong performance across all categories led to an EBITDA margin of 17.6% this quarter. The EBITDA margin increased by more than 350 basis points compared to the previous year, the ABFRL said in a press release.

ABFRL, part of major Indian conglomerate Aditya Birla Group, reported a 25% increase in revenue in the fourth quarter (Q4) of fiscal 2022 (fiscal 22) compared to pre-COVID levels as well as the during the last financial year. The company posted 50% year-over-year (YoY) growth in March 2022, offsetting the impact of COVID 3 in the first half of the fourth quarter.

The company’s e-commerce business currently generates an annual revenue of ₹1,000 crore.

ABFRL closed the quarter with a net debt of ₹504 crore.

Each of ABFRL’s business segments showed strong performance. Lifestyle brand revenues increased 34% year-on-year, while EBITDA increased 77%, driven by the wholesale recovery and strong retail LTL of 13%. Product innovations and expansion into new categories have driven the brand’s franchise growth. The company also continued to expand into small town markets, building on successful pilots conducted earlier this year.

Pantaloons business was up 13% year-on-year, despite disruptions at large-format stores due to the third wave of COVID. The e-commerce channel grew 81% year-over-year, with Pantaloons.com growing 63% year-over-year. Pantaloons doubled down on its aggressive network expansion program by opening 18 stores this quarter, the company said.

Other businesses include loungewear and sports leisure, youth western wear and super premium brands. The loungewear and sports leisure segment has seen steady growth during these quarters, thanks to the expansion of distribution through retail and e-commerce. The youth fashion segment, consisting of American Eagle and Forever 21, saw strong growth during the year.

Super premium brands, including The Collective and Mono brands, maintained their growth trajectory this year; almost doubled in size during the pre-COVID period. Ethnic businesses also showed strong revenue growth, with the magnitude coming from both network expansion, the addition of new portfolios and category extensions. The business is currently operating at an annual rate of ₹400 crore.

The start of the third wave had an effect at the start of the fourth quarter. However, ABFRL’s business has seen a strong rebound, with March 2022 sales up 50% from last year. The company also expects this momentum to continue in the coming quarters of this year, the statement added.

Fibre2Fashion (KD) News Desk

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