Birla Fashion back in black in Q3

Aditya Birla Fashion and Retail Ltd (ABFRL) reported profit after tax of Rs 58 crore on revenues of Rs 2,076 crore during the October to December quarter.

It had posted a net loss of Rs 38 crore on revenues of Rs 2,583 crore in the same quarter of previous fiscal. Sequentially (Q2 FY21), it had clocked a loss of Rs 188 crore on a turnover of Rs 1,028 crore due to the Covid19 induced countrywide lockdown.

In Q3 FY21, the company posted earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs 422 crore against Rs 423 crore year-on-year and Rs 136 crore quarter-on-quarter.

The pace and extent of recovery that started with the opening of stores in Q2 was amplified on the back of a large pent up demand, strong festive spirit and a concentrated wedding season.

A combination of the above factors led to an upsurge in sales to almost double of Q2 levels, said the company. Aided by the performance of businesses along with aggressive cost and working capital control measures, ABFRL generated nearly Rs 588 crore cash during the quarter.

With expected cash flows from operations next quarter, coupled with equity proceeds received through the rights issue and preferential allotment to Flipkart, the company said it is on course to close this fiscal with a net debt reduction of 90% over the start of the year.