Aditya Birla Fashion and Retail Limited reports double digit profit dip and revenue increase
Aditya Birla Fashion and Retail Limited saw its consolidated net profit drop by 94% year-on-year in the third quarter of the 2023 financial year to total Rs 11.21 crore. The business’ revenue from operations rose by 20.1% during the quarter to total Rs 3,588.8 crore.
The third quarter of the current financial year, which ended on December 31, 2022, saw Aditya Birla Fashion and Retail Limited take a significant hit to its profits, which had totalled Rs 196.8 crore in the third quarter of the 2022 financial year, ET Retail reported. The business had made significant investments in marketing during the recent third quarter and increased its strategic investments in new ventures by 2.3 times. ABFRL listed this as the main reason for its decreased profits in its regulatory filing on February 7.
ABFRL’s expenses totalled Rs 3,602.84 crore in the third quarter of the 2023 financial year compared to Rs 2,744.35 crore in the same quarter a year prior. For the recent quarter, ABFRL’s earnings before interest, tax, depreciation, and amortisation totalled Rs 467 crore.
Another way the business is investing is through its fast paced brick-and-mortar expansion, ET Bureau reported. ABFRL is opening new stores across its brand portfolio and has now passed the 550 store mark for its Lifestyle brands small town format stores, highlighting the adoption of branded fashion in more rural areas.
Copyright © 2023 FashionNetwork.com All rights reserved.