Net profit was impacted by increased interest costs due to elevated borrowings compared to last year, primarily because of the TCNS acquisition, said the company.

Revenue from operations jumped 18.3% year on year (YoY) to Rs 3,406.65 crore in the March 2024 quarter, in a muted market marred by prolonged sluggish consumption in the discretionary space.

The firm reported a pre-tax loss of Rs 314.14 crore in the fourth quarter of FY24 as against a pre-tax loss of Rs 259.15 crore posted in Q4 FY23.

Total expenses spiked 20.02% YoY to Rs 3,813.87 crore in Q4 FY24 over Q4 FY23. Cost of material consumed stood at Rs 304.25 crore (down 8% YoY), employee benefit expenses was at Rs 478.03 crore (up 15.45% YoY) during the period under review.

In Q4 FY24, EBITDA stood at Rs 377 crore, up 63% from Rs 232 crore recorded in same quarter last year, led by focused cost control initiatives. EBITDA margin climbed to 11.1% in March 2024 quarter as compared to 8% posted in the corresponding quarter previous year.

During the quarter, the company's revenue from Lifestyle brands grew 2% YoY to Rs 1,564 crore. EBITDA for the business stood at Rs 305 crore, growing 36% YoY on the back of gross margin improvement & tighter cost controls. Pantaloons posted quarterly sales of Rs 895 crore, representing a growth of 10% YoY. L2L growth for the quarter was 1%. With the changing market landscape over the last few years, the business decided to rationalise its store network to enhance long term strength of its distribution model.

Youth Western wear segment consists of American eagle and Forever 21. In Q4 FY24, American Eagle delivered another quarter of strong performance as sales grew 27%, led by strong distribution expansion. The brand added 6 more stores this quarter to exit at 65 stores, along with being available across 120 and more departmental doors.

Inner wear & athleisure segment posted flat revenue growth YoY in Q4, driven by a sustained decline in the athleisure segment. Further, Reebok grew 29% this quarter, with the brand profitably crossing Rs 450 crore in revenue within its first full year of operations with the company.

The company said that the Ethnic business grew 51% YoY this quarter (excluding TCNS); driven by higher same store sales, network expansion and category extensions. Designer wear brands, Sabyasachi grew 56% YoY in Q4 led by the jewellery segment which was more than 2x of LY. The brand recorded second consecutive quarter of 150 crore and more sales. Shantnu & Nikhil posted 6% growth YoY this quarter as its Pret label ‘S&N’ grew 25% over LY.

ABFRL's net debt stood at Rs 2,862 crore for the quarter ended March 2024, as against Rs 1,422 crore as of March 2023.

On full year basis, the firm reported a consolidated net loss of 628.02 crore in FY24 from Rs 36 crore posted in FY23. Revenue from operations rose 12.71% YoY to Rs 13,995.86 crore in financial year ended March 2024.

With respect to its outlook, ABFRL said, “With consumption remaining sluggish over the past 6-8 quarters, the company has sustained its focus on its long-term strategy to build strong & timeless brands for its consumers, while operating with flexibility and agility. The apparel market remains one of the most significant segments in the discretionary consumer space, where the organized part of the market is set to grow at a double digit CAGR over the next few years.

ABFRL’s long term strategy is aimed at building a sizeable business within this space with a brand-led strategy, leveraging its strong repertoire of well-known brands to secure a competitive advantage. The strategic de-merger of ABFRL is paving the way for the creation of two separate growth engines, each with a clear capital allocation strategy and unique path for value creation. Both entities will focus on specific growth areas aligned with their business models to maximize shareholder returns.”

Aditya Birla Fashion and Retail (ABFRL) is engaged in the business of manufacturing and retailing of branded apparels and runs a chain of apparels and accessories retail stores in India. As on 31 December 2023, the company has a network of 4,753 stores across approximately 37,106 multi-brand outlets with 9,781 point of sales in department stores across India.

The scrip added 2.71% to trade at Rs 293.40 on the BSE.