Aditya Birla Fashion and Retail posts record all-round performance in a muted market, Q3 PBT grows 58%

06 February, 2020

Standalone financials

(Rs. in crores)
  Q3 FY19 Q3 FY20
(Comp.)
Growth Q3 FY20
(Ind AS Adj.)
Revenue 2282 2562 12% 2562
EBITDA 186 227 22% 424
PBT 70 111 58% 98

(Rs. in crores)
  YTD FY19 YTD FY20
(Comp.)
Growth YTD FY20
(Ind AS Adj.)
Revenue 6202 6925 12% 6925
EBITDA 470 561 19% 1118
PBT 119 223 88% 169

Performance summary

The Board of Directors of the Company at its meeting today have approved the results for the quarter and nine months ended 31st Dec 2019. These financials are post factoring in necessary adjustments under Ind AS 116.

The Company posted a record performance in Q3 FY20 despite the economic slowdown and tepid consumer sentiment. For the third quarter, sales grew by a robust 12 per cent to Rs.2562 Cr. from Rs.2282 Cr. in Q3 FY19. 

The Company also reported a 22 per cent jump in EBITDA to post its highest-ever quarterly EBITDA of Rs.227 Cr., (comparable basis) with reported EBITDA (post Ind AS 116) at Rs.424 Cr.  PBT of the Company on a comparable basis soared by 58 per cent to Rs.111 Cr. vs Rs.70 Cr. in the same quarter last year.

For the year till date of this fiscal, the Company recorded sales growth of 12 per cent at Rs.6925 Cr. The comparable EBITDA for the period grew by 19 per cent to Rs.561 Cr. with margins expanding from 7.6 per cent in YTD FY19 to 8.1 per cent in YTD FY20. During this period, the Company posted 88 per cent increase in its comparable PBT at Rs.223 Cr. from Rs.119 Cr. last year.

As the Company has moved to a lower corporate tax regime, it recorded a one-time tax impact of Rs.106 Cr. for the quarter (Rs.130 Cr. for nine months).  Excluding this one-time impact, the comparable PAT would have been Rs.86 Cr. for the quarter and Rs.179 Cr. for nine months. The transition to the new corporate tax regime should improve cash flows for the next 2 years.  

Aditya Birla Fashion and Retail posts record all-round performance in a muted market, Q3 PBT grows 58 per cent.

Business Segment Highlights

Madura Segment: 

Madura business segment consists of Lifestyle brands – Louis Philippe, Van Heusen, Allen Solly and Peter England; Fast Fashion brands – People and Forever 21 and Other businesses that include Global brands, Innerwear and the newly forayed Ethnic businesses, viz. Jaypore and Shantanu & Nikhil. The consolidated financials include the financials of both these new businesses. 

Madura segment recorded 14 per cent growth in revenue in Q3 FY20 at Rs.1532 Cr. as compared to Rs.1345 Cr. in the same period last year, with a 14 per cent growth in comparable EBITDA from Rs.101 Cr. in Q3 FY19 to Rs.114 Cr. in Q3 FY20. 

  • Lifestyle brands reported 14 per cent higher sales with its new growth engines built around strong wedding categories and new ventures in women’s & kids. Amidst tough market conditions, the revenues for the period grew to Rs.1295 Cr. from Rs.1137 Cr. in the same period last year. Comparable EBITDA for the quarter is Rs.138 Cr. at a margin of 10.7 per cent. For YTD FY20, the revenues grew 12 per cent YoY to Rs.3554 Cr. while comparable EBITDA for the business was Rs.390 Cr. at an EBITDA margin of 11 per cent. 
  • Fast Fashion segment continued with its focus around improving operating performance.
  • Other Businesses portfolio grew well driven by exceptional performance of its constituent sub-segments viz. Innerwear and Global brands. The segment recorded a strong YoY growth of 39 per cent in revenue to Rs.148 Cr. in Q3 FY20. For YTD FY20, the segment grew 55 per cent in sales to Rs.407 Cr. 
    • Innerwear continued with its rapid scale up by expanding the distribution footprint to 20,000 trade outlets. 
    • Global brands continued to follow its growth trajectory with both The Collective and mono-brands doing well.

Pantaloons Segment:

Pantaloons continues its sustained performance with yet another quarter of outstanding results. The business recorded revenues of Rs.1083 Cr. for the quarter, a 13 per cent growth over last year, which is on the back of 28 per cent growth recorded during same period last year. Pantaloons continues to drive strong improvement in its profitability, achieving highest ever EBITDA of Rs.109 Cr., with margins of 10.1 per cent for the quarter. 

For YTD FY20, Pantaloons delivered a 13 per cent growth in sales to report Rs.2888 Cr., with EBITDA margins expanding from 8.5 per cent last year to 9 per cent this year.  

Outlook 

Aditya Birla Fashion and Retail Ltd. is one of India’s leading apparel company and is home to India’s most iconic apparel brands. With presence across varied segments, price points and wearing occasions, the Company operates a well-diversified portfolio. The Company is poised to continue its market-leading performance on the back of strong portfolio of brands, presence across all key consumer segments, wide distribution network and leadership in brand building, designing and merchandising.

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