Aditya Birla Fashion and Retail (ABFRL) reported a 51 percent jump in its earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs 253 crore for the fourth quarter ended March (Q4) as against Rs 167 crore in the corresponding period last year.
The company revenue in Q4 stood at Rs 1822 crore, marginally below Rs 1832 crore from a year ago. Its net loss stood at Rs 196 crore in Q4 as compared to Rs 147 crore net loss during the corresponding period last year. However, the company informed this included a one-time tax impact of about Rs 109 crore.
Jagdish Bajaj, CFO, Aditya Birla Fashion and Retail informed that the company received the infusion of Rs 1500 crore by way of a preferential issue to Flipkart and a Rs 250 crore partial payment of rights issue.
Overall, the company has reduced its debt from Rs 2,511 crore to Rs 654 crore through a mix of operating cash flows and equity infusion during the year. It also rationalised over Rs 1,200 crore of costs during the year to mitigate the impact of Covid on profitability.
According to the company, it was on the trajectory towards recovery during the quarter, however, the second wave again has derailed it. Currently, the company informed only 15 percent of its overall stores are operational due to the localised lockdowns.
“As of today, out of a total network of 3212 stores, about 419 stores are operational as of May 25,” the company informed while reporting its fourth-quarter results.
“We are in dialogue again with mall owners and landlords to relook at rental costs in light of the fresh episode of the virus outbreak,” Bajaj informed.
The company now expects to see recovery in the second quarter of FY22 with the onset of the festive season.