Aditya Birla Fashion & Retail Ltd standalone net profit at Rs43cr in Q2FY19 vs net loss in Q2FY18: Beats Estimates

The company’s standalone revenue in the period stood at Rs2,007.34cr, up 11% yoy and 5% qoq.

Nov 02, 2018 09:11 IST India Infoline Research Team

Aditya Birla Fashion & Retail Ltd Q2FY19

Standalone Results Q2FY19: (in Rs cr)

Q2FY19 YoY (%)
Revenue 2,007.34 11.3
EBITDA 142.80 53.5
EBITDA Margin (%) 7.1 195
Net Profit (adjusted) 42.73 -
***EBITDA margin change is bps

Aditya Birla Fashion & Retail Ltd's (ABFRL) revenue in Q2FY19 grew 11.3% yoy and 4.9% qoq to Rs2,007cr. EBITDA came in at Rs143cr, up 53.5% yoy and 25.4% qoq, while EBITDA margin expanded 195bps yoy and 116bps qoq basis to 7.11%. The company's adjusted net profit came in at Rs43cr vs a net loss of Rs10cr yoy and an adjusted net profit of Rs6cr qoq. EBITDA and adjusted net profit were higher than the consensus expectations of Rs136cr and Rs36cr, respectively.
  • Revenue growth was driven by the growth in Madura lifestyle and fashion segment, which grew 12.9% yoy to Rs1,263cr.
  • Combined footprint grew to 7.2mn sq ft from 6.7mn sq ft yoy.
  • Sales from Pantaloons segment grew 6.3% yoy to Rs787cr.
  • Cost of goods sold stood at 47.9% of revenue vs 48% yoy.
  • Other expenses stood at 20.6% of revenue vs 22.7% yoy leading to the expansion in EBITDA margin.
  • Rent grew 11.6% yoy to Rs265cr.
  • EBIT margin for Madura fashion & lifestyle and Pantaloons segment stood at 6.62% and 1.69% (vs 2.79% and 1.5% yoy), respectively.
  • Other income stood at Rs19cr vs Rs7cr yoy.

Segment-wise highlights

Madura fashion and lifestyle
  • Revenue and EBITDA for Lifestyle brands increased by 12% and 35% yoy, respectively, to Rs1,090cr and Rs140cr, respectively, in Q2FY19.
  • Fast Fashion continues to operate cautiously, which has led to a reduction in EBITDA losses to Rs10cr from Rs12cr yoy.
  • Other businesses continue with the upward trend, displaying 88% yoy growth in revenues in Q2FY19 with EBITDA losses maintained at Rs17cr.
  • Innerwear distribution network continues to expand aggressively with approximately 9,500 outlets across the country.
  • The business also had a successful launch of women’s innerwear and Polo Ralph Lauren.
  • Pantaloons continues on its growth trajectory despite the festive season moving to Q3FY19E.
  • Revenues grew 6% yoy in Q2FY19 to reach Rs787cr (Ind AS adjusted growth rate of 8% yoy).
  • Attained a remarkable growth of 47% yoy in EBITDA to Rs52cr in Q2FY19E.

Technical View:

Aditya Birla Fashion & Retail Ltd share price is currently at Rs192.10, up 4.5 points, or 2.4%, from its previous close of Rs187.60 on the BSE. The scrip opened at Rs188.45 and has touched a high and low of Rs199.25 and Rs187.55, respectively. So far,,41,06,507 (NSE+BSE) shares have been traded on the counter. The stock is currently trading below its 50-DMA.

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