New Delhi: Aditya Birla Fashion and Retail Ltd (ABFRL) on Tuesday posted a huge dip of 94 per cent in the consolidated net profit of Rs 11.21 crore for the third quarter ended in December 2022 as against a net profit of Rs 196.80 crore during the October-December quarter of the previous fiscal, the company said in a BSE filing.
However, its revenue from operations increased 20.1 per cent to Rs 3,588.80 crore during Q3 FY23 as against Rs 2987.10 crore in the corresponding quarter of the previous fiscal.
The company made accelerated marketing investments post a hiatus of 2 years across businesses as the company reinstated its rigor on augmenting its brands and building customer engagement, as per the regulatory filing. Stating the reason for the impact on net profit, the company said its marketing and strategic investments in new ventures increased by almost 2.3 times during the quarter.
According to the regulatory filing, ABFRL’s total expenses rose to Rs 3,602.84 in Q3 FY23 as compared to Rs 2,744.35 crore in the same period of the previous fiscal.
Its consolidated quarterly EBITDA stood at Rs. 467 crore.
In a statement, ABFRL said it continues to expand its network aggressively. Its branded business network gained 245 stores including newly integrated Reebok stores, ethnic business added 15 new stores.
Further, the company’s network of small town format within Lifestyle brands has now crossed over 550 stores.
Pantaloons added 10 new stores to the network. It said to continue executing its long-term strategy with play across emerging consumer spaces.
The long-term outlook for the company continues to be positive owing to normalization of offline businesses, proliferation of e-commerce, continued penetration for organized and branded apparel at the back of the strength of our brands.
With multiple growth drivers at play, ABFRL is strategically positioned to capitalize, having firmly established its presence across multiple categories, segments, channels and price points.