Aditya Birla Fashion and Retail Reports 13% Revenue Growth in Q2FY25 Results

Aditya Birla Fashion and Retail (ABFRL) reported a 13% year-on-year (YoY) growth in revenue for Q2FY25, reaching ₹3,644 crore. Despite a challenging demand environment, the company’s half-year (H1) revenue reached ₹7,072 crore, marking a 10% increase compared to the previous year.

Key Growth Areas

ABFRL’s demerged business, focusing on high-growth segments, showed strong performance with a 31% YoY growth. The ethnic wear business grew more than three times compared to last year, thanks to the addition of TCNS and Tarun Tahiliani couture. Organic growth in this segment was around 10%. Additionally, the TMRW portfolio more than doubled in size from the previous year.

Strong Financial Performance

The company’s Q2 EBITDA increased by 11% YoY, reaching ₹410 crore, with an EBITDA margin of 11.2%. Key segments like lifestyle brands, which include Louis Philippe and Van Heusen, maintained strong margins of 18.4%. The Pantaloons segment saw a 65% YoY increase in EBITDA. Overall, the company’s EBITDA margin for H1 expanded by 30 basis points to 11.5%.

Strategic Growth and Digital Focus

ABFRL continued expanding its store network, reaching a total of 4,538 stores across 12 million sq. ft. of retail space. The company also saw a 30%+ YoY growth in e-commerce sales. The net debt stood at ₹3,759 crore as of September 2024. The company remains committed to building a robust digital and omnichannel model, ensuring sustained growth despite market challenges.

Business Segments and Outlook

Aditya Birla Lifestyle Brands Limited (ABLBL) includes key brands like Louis Philippe, Van Heusen, Allen Solly, and Peter England. The lifestyle brands segment reported ₹1,636 crore in revenue, growing 3% compared to the previous year. EBITDA in this segment was ₹302 crore, with an EBITDA margin of 18.4%. Emerging segments like Youth Western wear and sportswear also showed positive growth, continuing to drive profitability.

ABFRL is focused on adapting to changing consumer demand, leveraging its strong brand portfolio and extensive distribution network. Despite the market challenges, the company remains resilient and committed to long-term growth and profitability.

On November 08, 2024, Aditya Birla Fashion and Retail share price opened at ₹301.00 and touched the day high of ₹307.90 at 09:48 AM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.