ABFRL records highest ever standalone EBITDA in Q3 FY21

October-December 2020 quarter saw a significant acceleration of business recovery along sequential quarters, as consumers started coming back to stores and continued to buy more online due to buoyant festive mood and visibility of a declining infection spread. As a result, Q3 FY21 sales were more than double of Q2 FY21, ABFRL said in its Q3 financial performance report.

During the quarter, the company continued its strategic transformation agenda, including digitisation across front end and back end with tremendous agility. ABFRL also launched newer categories and segments relevant in the current context.

Accelerating its network expansion, ABFRL launched more than 230 stores across businesses and formats. It also entered smaller towns and cities through newer brand pilots.

ABFRL generated ₹588 crore operating cash flows during the quarter. "Debt projected to be down by 90 per cent by the end of the fiscal from the start of the financial year," the company said.

The Lifestyle brands business segment of ABFRL recovered to 80 per cent of last year levels, with retail channel recording 92 per cent recovery. "Improved gross margins and strong cost control measures drove a margin expansion of 140 bps."

Pantaloons business recovered to 75 per cent of pre-COVID levels, reporting the highest ever EBITDA margins in the history of the company. This was driven by improved product mix, superior inventory management leading to lower discounts and stringent control of fixed costs.

ABFRL's Other business segment comprises of Youth fashion brands such as Forever 21 and American Eagle, Innerwear and athleisure business, Global brands and newly incubated ethnic wear businesses. "Each of the constituent organic businesses posted their best-ever performance in terms of profitability on the back of a YOY growth this quarter, despite the pandemic. This validates the consumer affinity towards strong brands and underlines the inherent resilience of this segment," the company said.

Innerwear and athleisure segment recorded 25 per cent growth over the same quarter last year. The wide acceptance of the women’s innerwear and athleisure portfolio reinforced its position as a strong lever of growth for this business.

Fibre2Fashion News Desk (RKS)