Aditya Birla Fashion and Retail Ltd (ABFRL) on Wednesday reported a consolidated net loss of Rs 146.59 crore in the fourth quarter ended March 31, 2020, impacted by the coronavirus pandemic. The company, which had posted a consolidated net profit of Rs 202.64 crore in the same quarter a year ago, said its board has approved raising Rs 1,000 crore by way of a rights issue.
Revenue from operations during the quarter under review stood at Rs 1,831.88 crore. It was at Rs 1,915.31 crore in the year-ago period, ABFRL said in a regulatory filing.
As the country was struck by the COVID-19 pandemic early March, leading to movement restrictions and heightened sense of insecurity among people, consumers started to stay away from all non-essential shopping.
This dramatically reduced the footfalls at stores across the country, leading to a steep decline in sales from the second week of March, the company said.
"Eventually, the company had to shut down its entire retail network through the month in line with the nationwide lockdown announced by the Government of India.
"This unprecedented disruption had an adverse impact on the quarterly performance, and led to a decline in sales and profits for the fourth quarter over the same period last year," it said.
For the fiscal ended March 31, 2020, the company posted a consolidated net loss of Rs 165.02 crore. It had posted a consolidated net profit of Rs 149.1 crore in the previous fiscal.
Revenue from operations in 2019-20 stood at Rs 8,787.86 crore. It was at Rs 8,117.72 crore in 2018-19, the company added.
As the market reopens post the lockdown, the company is set to resume its full operations at the earliest, it said.
On the rights issues, ABFRL said it intends to raise capital to meet its objectives of reducing its leverage, strengthening its balance sheet and for general corporate purposes, including working capital.
The rights issue would be an equitable mode of fund raising as it gives its shareholders an equal opportunity to participate in the growth of the company, it added.ABFRL further said it intends to complete the rights issue at the earliest, subject to market conditions and other factors, including regulatory approvals.