Aditya Birla Fashion and Retail posts strong performance in Q4 FY19 despite tough market conditions; Revenue up 9%, PAT surges by 79%

16 May 2019

(Rs. Cr.) Q4 FY 2018 Q4 FY 2019 Growth FY 2018 FY 2019 Growth
Revenue 1754 1915 +9% 7181 8118 +13%
EBITDA 174 149 (14)% 501 619 +24%
PAT 113 203 +79% 118 321 +173%

Q4 FY 2019 & FY 2019 Financial Performance

The Board of Directors of the Company at its meeting today have approved the results for the quarter and year ended 31st March 2019.

Profit After Tax (PAT) for the quarter was 79 per cent higher at Rs.203 Cr vs Rs.113 Cr last year. The Company reported a robust increase in revenue of 9 per cent from Rs.1754 Cr. to Rs.1915 Cr. with a decline in EBITDA in Q4 FY19 due to rise in marketing spends in line with our endeavour to strengthen our brands.

On full year basis, the EBITDA has increased 24 per cent (Rs.619 Cr. vs. Rs.501 Cr.) and revenue has grown by 13 per cent (Rs.8118 Cr. vs. Rs.7181 Cr.) compared to FY18, which adjusted for Ind AS is 15 per cent Growth.

The Company reported 173 per cent higher PAT of Rs.321 Cr. (including deferred tax asset of Rs.194 Cr.) vs Rs.118 Cr. (including deferred tax asset of Rs.69 Cr.) last year.

Business Segment Highlights

Madura Segment:

Madura business segment consists of lifestyle brands – Louis Philippe, Van Heusen, Allen Solly and Peter England, Fast Fashion – Forever 21 and People and other businesses.

Madura recorded 14 per cent growth in revenue in Q4 as compared to the same period last year (Rs.1320 Cr. vs. 1161 Cr.) However, EBITDA witnessed a slight decline on the back of increased EBITDA losses in other business segments.

  • EBITDA for lifestyle brands witnessed a slight increase at Rs.169 Cr. from Rs.166 Cr. in Q4 FY18 while revenue grew by 12 per cent from Rs.1015 Cr. to Rs.1132 Cr. over Q4 FY18. At full year level, revenue grew 11 per cent (13 per cent adjusted for GST and Ind AS) from Rs.3866 Cr. in FY18 to Rs.4304 Cr. in FY19, while EBITDA increased by 15 per cent from Rs.450 Cr. in FY18 to Rs.519 Cr. in FY19.
  • Fast Fashion continues to deliver steady performance, with EBITDA losses for the quarter remaining flat at Rs.5 Cr.
  • Other businesses continue to showcase strong performance with 65 per cent growth in revenues over Q4 FY18 and EBITDA losses at Rs.24 Cr.; innerwear business continues to scale at a rapid pace expanding its footprint and now touches approximately 14000 outlets across the country. Global brands business continues to gain scale - first Ralph Lauren store was launched in Q4 FY19 in Delhi. Fueled by aggressive growth in innerwear business, revenues for Other Businesses grew by 80 per cent on full year basis.
  • On full year basis, segment revenues grew 13 per cent from Rs.4469 Cr. in FY18 to Rs.5032 Cr. in FY19. Adjusted for GST and Ind AS, the growth translates to 14 per cent. EBITDA for the period rose 17 per cent from Rs.344 Cr. in FY18 to Rs.401 Cr. in FY19.
    Aditya Birla Fashion and Retail posts strong performance in Q4 FY19 despite tough market conditions; revenue up 9 per cent, PAT surges by 79 per cent.

Pantaloons Segment:

Pantaloons continues on its journey of becoming a dominant value-fashion retailer in the country.

Business reported revenue of Rs.633 Cr. in Q4 FY vs Rs.641 Cr. vs Q4 last year, clocking Ind AS adjusted growth rate of 4 per cent. However, the EBITDA was impacted by higher marketing expenditure incurred towards building brand Pantaloons. EBITDA in Q4 FY19 stood at Rs.13 Cr. vis-à-vis Rs.27 Cr. in Q4 FY18.

Revenue for full year grew from Rs.2862 Cr. in FY18 to Rs.3194 Cr. in FY19, which translates to 12 per cent growth (GST and Ind AS adjusted growth of 15 per cent). The segment posted outstanding growth in profitability during this year with EBITDA moving from Rs.171 Cr. in FY18 to Rs.231 Cr. in FY19.

Outlook 

Lifestyle brands continue to surge ahead with a sharp focus on brand strengthening, category extensions, store network expansion and customer centricity.  

Pantaloons to continue to grow by focusing on improving its value proposition and targeting newer markets in India for increasing its footprint. 

Fast Fashion segment will continue to focus on improving profitability by calibrating its business model.  

Innerwear to aggressively expand its distribution footprint, riding on both men’s and women’s offerings. Global brands to keep improving its existing operations coupled with planned expansion of its mono brand stores. 

Overall, ABFRL with its diversified offerings in the fashion & apparel space is well positioned to surge ahead in the billion-dollar market and build on its current momentum. 

About Aditya Birla Fashion and Retail Limited 

Aditya Birla Fashion and Retail Limited is India’s largest pure-play fashion and lifestyle company with a strong bouquet of leading fashion brands and retail formats. The Company has a network of 2714 stores, presence across approximately 18000 multi-brand outlets with 5000+ point of sales in department stores across India.     

Disclaimer : Certain statements in this “Press Release” may not be based on historical information or facts and may be “forward looking statements” within the meaning of applicable securities laws and regulations, including, but not limited to, those relating to general business plans & strategy of the Company, its future outlook & growth prospects, future developments in its businesses, its competitive & regulatory environment and management's current views & assumptions which may not remain constant due to risks and uncertainties. Actual results could differ materially from those expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any statement, on the basis of any subsequent development, information or events, or otherwise. This “Press Release” does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of the Company’s shares. The financial figures in this “Press Release” have been rounded off to the nearest Rs. one Crore. The financial results are consolidated financials unless otherwise specified.

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