Aditya Birla Fashion and Retail's Q1 net loss widens 6 pc to Rs 249 crore
New Delhi, Aug 8
Aditya Birla Fashion and Retail Ltd on Saturday posted a consolidated net loss that widened 6.4 per cent year-on-year to Rs 248.73 crore in the quarter ended June 30 of FY27, from Rs 233.73 crore a year ago.
The company's loss before tax also increased to Rs 320.26 crore in the quarter from Rs 259.50 crore in the year-ago period, according to its exchange filing.
In addition, revenue from operations rose 10.6 per cent to Rs 2,025.56 crore from Rs 1,831.46 crore in the corresponding quarter last year.
However, total expenses increased to Rs 2,395.45 crore from Rs 2,148.75 crore, outpacing the growth in revenue and contributing to the wider loss.
Total income -- including other income -- stood at Rs 2,081.58 crore in the June quarter, compared with Rs 1,895 crore in the same period a year earlier.
The net loss attributable to owners of the company stood at Rs 215.24 crore.
Moreover, the Ethnic and other segments remained the largest drag on the company's performance. Its segment loss widened to Rs 188.54 crore in the June quarter from Rs 178.82 crore a year earlier.
Revenue from the segment increased to Rs 830.79 crore from Rs 754.57 crore during the same period.
The Pantaloons segment reported a marginal profit of Rs 3.48 crore, compared with Rs 3.67 crore in the corresponding quarter last year. Its revenue rose to Rs 1,204.39 crore from Rs 1,094.13 crore.
The company's total segment revenue before inter-segment adjustments stood at Rs 2,035.18 crore in the June quarter, compared with Rs 1,848.70 crore a year earlier.
Shares of Aditya Birla Fashion and Retail on Friday ended on a flat note at Rs 63.41 on the NSE. The stock has touched a 52-week high of Rs 94.95 and a 52-week low of Rs 53.51, according to the exchange.
— IANS
Reader Comments
Pantaloons is barely making any profit while ethnic wear is losing so much. Maybe they should focus more on their value fashion segment? The middle class is price-sensitive, and with inflation, people are cutting back on non-essential spending. Makes sense.
🤔 I've noticed their stores are always crowded but the discounts are getting bigger every season. Something is wrong with their pricing strategy. They can't just keep offering 50-70% off and expect to make profits. Also, online competition from Meesho and Ajio is intense.
The stock has dropped from 95 to 63 in a year. Investors are clearly not happy. The management needs to control expenses - they rose more than revenue. It's simple math, spending more than you earn never works. Hope they streamline operations soon.
Interesting to see how an Indian retail giant is navigating these challenging times. The ethnic wear segment seems to be the problem child here. With global supply chain issues and changing consumer preferences post-pandemic, this is a tough market. Let's see if they can turn it around.
Honestly, I used to shop at Pantaloons a lot but now I find better quality clothes at similar prices online. They need to improve their online presence and maybe introduce younger, more trendy collections. The ethnic wear segment needs fresh designs too. 👗
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