Fabindia net profit plummets 42 percent to Rs 59 crore

By

Maverick Martins

Published
Oct 26, 2018

Ethnic clothing retailer Fabindia net profit for the year 2017-18 plummeted 42 percent to Rs 59 crore ($8.1 million) as a result of demonetisation and implementation of the Goods and Services Tax (GST) last year.
 

The company also witnessed its slowdown in sales revenue which was the lowest for the company in more than a decade as it managed to post a meagre 2 percent rise in sales from the previous year to Rs1,060 crore.
 
Fabindia had reported strong results for the fiscal year 2016-17 with a revenue of Rs 1037 crore (approx $160.8 million) and profit of 97 crore (approx $15 million).

With effects of demonetisation and GST fading, Fabindia is now hoping for a revival in its fortunes and hoping the launch of its long-term initiative like the Fabindia Experience Centres will help it post positive results in the future.
 
“As a brand that does not discount and is closely associated with the craft and small-scale sectors, the effects of demonetisation and introduction of GST in 2017/18 were heightened and prolonged,” Viney Singh, managing director of Fabindia, told the Economic Times
 
 “The year under review also saw the launch of a number of long-term initiatives which are beginning to show positive results. These include independent business units to make our smaller businesses more entrepreneurial, focus on our new stores – Fabindia Experience Centers – that has been very well received and are under rapid expansion, and optimising our supply chain costs post GST,” Singh added.
 
During the last fiscal year, Fabindia opened 43 new stores, taking its overall store count to 275.