Aditya Birla Fashion and Retail reported a net loss of ₹410 crore in the first quarter of the current financial year against a profit of ₹22 crore in the year-ago period
MUMBAI : Aditya Birla Fashion and Retail on Thursday reported a net loss of ₹410 crore in the first quarter of the current financial year against a profit of ₹22 crore in the year-ago period.
The revenue was down by over 84% at ₹323 crore in Q1 FY21 against ₹2,065 crore in Q1 FY20.
The company posted earnings before interest, tax, depreciation and amortisation (EBITDA) loss at ₹182 crore against ₹332 crore year-on-year.
The June quarter has been one of the most challenging quarters for the company and for the overall Indian apparel industry, it said, with operations severely impacted due to the unprecedented economic standstill induced by the COVID-19 pandemic.
In April and May, most of the retail network was closed while e-commerce sales too restarted only in the third week of May when the restrictions on non-essential products were lifted. Stores started to open during June, although operational hours were restricted in many places which slowed down the return to normalcy.
By June-end, nearly 80% of the company's network had re-opened.
"Now the company plans to continue distribution expansion with its franchisee partners and also leverage the attractive real estate opportunities coming through during the crisis, in line with its strong conviction regarding the untapped potential of the fashion business in India." During the quarter ended June, the company successfully completed a rights issue of ₹1,000 crore by offering 9.05 crore shares at ₹110 per share. The issue evinced strong interest from promoters, large shareholders, and retail investors.
The company could mobilise ₹496 crore in the first tranche during the quarter. This fund-raising will add significant strength to its balance sheet.
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