Aditya Birla Fashion and Retail Ltd reports earnings for Q4, FY2020

The Board of Directors of Aditya Birla Fashion and Retail Ltd at its meeting today have approved the results for the quarter ended 31st Mar 2020. These financials are post factoring in necessary adjustments under Ind AS 116.

Key Highlights of Q4 and FY20 Performance

- Full year revenue records 8% growth at Rs.8743 Cr.; EBITDA (Ind AS Adj.) at Rs.1290 Cr.
- Company expands retail footprint; adds close to 400 retail stores through FY20.
- Strong growth momentum seen across business segments pre-COVID.
- COVID-19 induced economic standstill impacted quarterly performance; Operations have now resumed at all manufacturing facilities; More than 1/3rd of stores have now reopened.
- Board approves Rs.1000 Cr. rights issue. Move to strengthen balance sheet in line with long term growth aspirations.

ABFRL had a strong Financial Year 19-20 as it crossed some key growth milestones. For the first 9 months of the fiscal, the business grew its revenue by 12% and EBITDA by 19% basis strong performance in the festive season.

The business continued to grow strongly in the months of January and February led by weddings and an extremely successful EOSS.

For the financial year 2020, the Company recorded sales growth of 8% at Rs. 8743 Cr. The comparable EBITDA for the period dropped by 16% to Rs. 518 Cr. During the period, the Company posted comparable PBT of Rs. 57 Cr. vs Rs. 149 Cr. last year. The Company also aggressively expanded its retail footprint by adding close to 400 stores across its brands.

In Q4 FY20, the Company posted a decline of 5% in sales to Rs. 1817 Cr. and EBITDA loss of Rs. 43 Cr., on a comparable basis. At the same time, reported EBITDA (post Ind AS 116) for the quarter was at Rs. 173 Cr.

Aditya Birla Fashion and Retail Ltd. is one of India's leading apparel companies and is home to some of India's most iconic apparel brands. Spread across varied segments, price points and wearing occasions, the Company operates a well-diversified portfolio which now covers some exciting growth areas. As the market reopens post a lockdown, the Company is set to resume its full operations at the earliest. With leadership across brands, wide and deep distribution, enhanced digital capabilities and its skilled talent pool, ABFRL is poised to continue with its consistent performance.

Shares of Aditya Birla Fashion and Retail Ltd was last trading in BSE at Rs.107.85 as compared to the previous close of Rs. 108.35. The total number of shares traded during the day was 66405 in over 1611 trades.

The stock hit an intraday high of Rs. 110.5 and intraday low of 105.9. The net turnover during the day was Rs. 7143084.

Source : Equity Bulls

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