Aditya Birla Fashion and Retail Ltd bounces back, reports Rs 35 crore profit for third quarter
Aditya Birla Fashion and Retail Ltd (ABFRL) have managed to turnaround its fortunes in the third quarter as it posted a net profit of Rs 35 crore (approx $ 5.5 million) for the quarter ended December 31, 2017. The company had reported net loss of Rs 12 crore (approx $ 1.9 million) in the corresponding period a year ago.
In Q2 of the same fiscal, ABFRL had reported a standalone net loss of Rs 10 crore (approx $1.6 million) which the company had attributed to Goods and Services Tax rollout (GST), transition issues and steep fall in consumer sentiment in July immediately post GST.
However, after making the smooth transition into the GST regime the company seems to back to its profitable ways in the third quarter. Strong sales during the festive and wedding season coupled with end of season sales leading to a rise in revenue and profits for the quarter.
The company’s revenue jumped 9 percent to Rs1, 862 crore (approx $ 290.3 million) from Rs 1, 715 crore (approx $267.5 million) it had reported during the same period in the previous year, the company said in a statement.
ABFRL has been rapidly expanding its brand portfolio and physical presence across the globe. It recently entered the Nepal market with its first Louis Philippe store and also entered into license agreement with Ralph Lauren to open stores in India
ABFRL ended the quarter 2,156 stores for all its brands together while Pantaloons had 256 outlets. The company also opened around 6,000 outlets to sell innerwear across 75 towns during the quarter.
The company has also said that it will launch its first Ted Baker store during the current quarter. Aditya Birla Fashion owns the exclusive rights for international brands Forever 21, Ted Baker, Simon Carter among many others and is also in talks for acquiring rights for American Eagle.
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