Aditya Birla Fashion and Retail posted net profit of ₹5.09 crore in Q2 of FY22 compared to a loss of ₹188 crore in the same period last year.
The fashion arm of Aditya Birla Group saw an impressive growth in revenue from operations at ₹2,054 crore for the quarter ended September 30, compared to ₹1,028 crore in the same period last year. This is a recovery of 90 per cent over pre-Covid levels (Q2 FY 20).
The debt reduced from ₹1,200 crore in Q1 FY22 to ₹873 crore by the end of Q2 FY22. 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 second 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, alternative channels of sales like e-commerce and omnichannel retail performed very well,” the company said in a note on Wednesday.
Lifestyle revenues more than doubled YoY. 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, grew more than pre-Covid levels, aided by online channels. Ethnic wear portfolio continues to build on all of its constituent brands; new store openings boosted growth.
Small-town formats continue to show promising results. While Peter England Red and Allen Solly Prime are rapidly accelerating; two more brands — Van Heusen and Louis Philippe — successfully forayed into these markets through pilots.