Aditya Birla Fashion and Retail (ABFRL) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue grew 7% year-over-year to INR 3,428 crore, with EBITDA up 15% to INR 406 crore and margin expansion to 11.8%.

• Profit after tax was a loss of INR 215 crore, impacted by continued investments in TMRW and ethnic businesses.

• Distribution network expanded to 4,190 brand stores and 417 Pantaloons stores, totaling 11.9 million sq. ft.

• Results reflect the impact of recent acquisitions and ongoing corporate restructuring, including the TCNS Clothing merger and planned demerger of Madura Fashion & Lifestyle.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board and reviewed by auditors with no material misstatements found.

Financial highlights

• Q1 FY25 consolidated revenue was INR 3,428 crore, up from INR 3,196 crore in Q1 FY24.

• Consolidated EBITDA reached INR 406 crore (11.8% margin), up 15% YOY; PAT was INR -215 crore due to continued investments.

• Pantaloons segment revenue up 5% YOY to INR 1,101 crore, with EBITDA up 43% and margin at 17.6%.

• Lifestyle Brands revenue at INR 1,482 crore, with EBITDA margin up 50 bps to 18.8%.

• Ethnic and digital-first portfolios more than doubled revenue YOY; Ethnic Subsidiaries revenue at INR 350 crore, up 161% YOY, but EBITDA loss widened.

Outlook and guidance

• Anticipates improved demand in H2 FY25, especially during the wedding and festive seasons.

• TCNS expected to turn profitable in H2; continued investment in Tasva and TMRW will persist.

• Store expansion in Pantaloons targeted at 20-25 stores for FY25, with ongoing reassessment.

• The company is awaiting regulatory approvals for the demerger of Madura Fashion & Lifestyle and expects to give effect to the TCNS Clothing merger in the next quarter.