In This Article:
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Consolidated Revenue: INR4,305 crore, a growth of 3% YoY.
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Consolidated EBITDA: INR683 crore, 13% YoY growth, with a margin of 15.9%.
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Consolidated PAT: Loss of INR42 crore, improved from a loss of INR108 crore YoY.
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YTD Revenue: INR11,376 crore, a growth of 7% YoY.
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YTD EBITDA Margin: 13.2%, up from 12.5% YoY.
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Store Network: 4,492 stores, covering 11.9 million square feet.
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Net Debt: Approximately INR1,800 crore as of January 2025.
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ABLBL Revenue: INR2,151 crore, with an EBITDA of INR355 crore and a margin of 16.5%.
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Lifestyle Brands L2L Growth: 12% across more than 2,500 stores.
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Pantaloons Revenue: INR1,305 crore, with an EBITDA margin of 19.3%.
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Ethnic Business Revenue: INR588 crore, a growth of 7% YoY.
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Designer-led Brands Growth: 41% YoY.
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Tasva Sales Growth: Over 50% YoY, with an 18% L2L growth.
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Luxury Retail Growth: 13% in Q3 FY25, with a 10% L2L growth.
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Digital Brand Portfolios Growth: 26% YoY in sales.
Release Date: February 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Aditya Birla Fashion and Retail Ltd (BOM:535755) reported a consolidated revenue growth of 3% YoY, reaching INR4,305 crore for Q3 FY25.
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The company achieved a consolidated EBITDA growth of 13% YoY, with margins improving from 14.5% to 15.9%.
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The demerger of the western wear brands business into Aditya Birla Lifestyle Brands Limited is progressing well, expected to complete in the next two to three months.
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The company successfully raised USD490 million in equity capital, making the demerged entity debt-free and providing cash for growth.
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Lifestyle Brands reported a strong like-to-like growth of 12% across more than 2,500 stores, reflecting robust consumer franchise strength.
Negative Points
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Overall consumption remained subdued, with inconsistent footfalls outside the festive and wedding season.
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Pantaloons reported a revenue decline due to the shift of Pujo to Q2 and closure of over 40 stores in the past year.
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The emerging growth businesses, including youth western wear and innerwear, posted only a 5% growth, impacted by the phasing out of F21 offline operations.
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TCNS recorded a revenue decline of about 20% due to ongoing distribution optimization.
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The company reported a consolidated PAT loss of INR42 crore for the quarter, though improved from a loss of INR108 crore in the same quarter last year.
Q & A Highlights
Q: What drove the strong like-for-like performance in Lifestyle Brands despite a tight demand environment, and how should we think about future margins? A: Vishak Kumar, CEO of Lifestyle Business, explained that the strong performance was largely driven by a robust festive and wedding season, for which they had prepared well. The margin expansion was attributed to tighter discounting and improved channel mix. Future margins will continue to benefit from reduced discounting and enhanced retail experiences.