Aditya Birla Fashion and Retail (ABFRL) Q2 24/25 earnings summary

Executive summary

• Q2FY25 consolidated revenue rose 13% YoY to INR 3,644 crore, with EBITDA at INR 410 crore and an 11.2% margin; PAT loss widened to INR 215 crore due to higher depreciation and interest costs.

• H1FY25 revenue was INR 7,072 crore, up 10% YoY, with EBITDA at INR 816 crore (13% YoY growth) and an 11.5% margin.

• The period included the completed acquisition and amalgamation of TCNS and the acquisition of Goodview Fashion Private Limited.

• All brands reported positive like-to-like growth, with working capital efficiency improving due to better inventory control.

• Board approval of unaudited results and major corporate actions impacted comparability.

Financial highlights

• Q2FY25 revenue: INR 3,644 crore (+13% YoY); EBITDA: INR 410 crore (+11% YoY); EBITDA margin: 11.2%.

• Q2 PAT loss: INR 215 crore, mainly due to higher depreciation/amortization and interest costs from acquisitions.

• H1FY25 revenue: INR 7,072 crore (+10% YoY); EBITDA: INR 816 crore (+13% YoY); PAT loss: INR 430 crore.

• Exceptional items included a one-time impairment of INR 98 crore and a mark-to-market gain of INR 121 crore, netting a gain of INR 23 crore.

• Net debt as of September 30, 2024, stood at INR 3,759 crore.

Outlook and guidance

• Management expects improved demand in H2, driven by festive and wedding seasons, with a focus on operational efficiency, product innovation, and customer experience.

• Expansion plans include accelerating store openings, especially for successful formats like Style Up.

• Demerger of Madura Fashion & Lifestyle Business is underway, pending further approvals.

• Double-digit revenue CAGR is targeted for lifestyle brands over the long term.