Indian brand ABFRL's EBITDA soars 150% to ₹338 crore in Q2FY21

16 Nov '21

2 min read

Pic: Aditya Birla Fashion & Retail

Aditya Birla Fashion and Retail Limited (ABFRL), part of a leading Indian conglomerate, The Aditya Birla Group, has recorded consolidated EBITDA of ₹338 crore in the second quarter of fiscal 2021, 150 per cent soar from the second quarter of fiscal 2020. The company has registered strong business rebound with 90 per cent recovery over pre-COVID levels.

EBITDA performance has been driven by robust demand recovery and tight control on costs. E-commerce sales continued to grow rapidly, ABFRL said in its financial performance report.

The company’s consolidated revenue doubled y-o-y to ₹2,054 cr in the second quarter of fiscal 2021 from ₹1,028 cr in the same quarter of previous year.

In the second quarter of fiscal 2021, Pantaloons grew 80 per cent over the previous year with a slower recovery owing to a larger share of mall stores that had prolonged restrictions. Other businesses, including Active Athleisure Innerwear, Youth Western Fashion and Super Premium brands, have grown over pre-COVID levels, aided by online channels. Ethnic wear portfolio continues to build on all of its constituent brands; new store openings boosted growth.

The debt has reduced from ₹1,200 cr in the first quarter of fiscal 2022 to ₹873 cr by the end of the same quarter in fiscal 2022. Despite aggressive growth plans across brands and channels, debt is expected to stay range bound at these levels for the year.

The quarter began with gradual recovery from COVID-19 2nd wave, with relaxed mobility restrictions and aggressive vaccination drive across the nation, sharply changing the consumer sentiment. This led to a strong recovery in store footfalls. Retail channel operations saw a rapid growth in demand as the national infection caseload came down. During this period, alternate channels of sales like e-commerce and omni-channel retail performed very well, the company report added.

Encouraged by the strong rebound, the company will accelerate its growth trajectory now, driven by aggressive expansion in the product portfolio, entry into newer consumer segments and network expansion, both in existing and newer markets. Given the underlying business fundamentals, the enhanced digital capabilities and the balance sheet strength, the company is well poised to embark on a new wave of growth and create value for all stakeholders.

Fibre2Fashion News Desk (RR)

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