Aditya Birla Fashion and Retail Limited (ABFRL), that runs a network of over 2,800 shops, made a massive leap forward by posting a six-fold jump in net profit to Rs 39 crore during quarter ended June. It occurred due to lower base in the base quarter and higher revenues from premium brands. Net sales rose 8 per cent to Rs 2065 crore during the first quarter. A year ago, it had net profit of Rs 6 crore on revenues of Rs 1914 crore.
“We saw strong growth across segments. While consumer demand saw pressure at an overall economy standpoint, the migration from unorganised to branded continued and helped us grow in a tough market,” Ashish Dikshit, managing director.
The company’s Madura division that includes brands such as Louis Philippe, Van Heusen and Allen Solly expanded 10 per cent to Rs1210 crore while Pantaloons segment reported a 9.5 per cent increase in revenue at Rs 890 crore. Its real importance can be understood by the fact that the retailer’s earnings before interest, tax, depreciation and amortization (EBITDA) grew from 28 per cent to Rs 156 crore with margin expansion of 120 basis points.