Aditya Birla Fashion and Retail Ltd reports a deeper net loss in the June quarter as rising costs overshadow a double-digit sales increase, highlighting ongoing challenges in the retail sector.
Aditya Birla Fashion and Retail Ltd said its consolidated net loss widened in the June quarter as higher costs outpaced revenue growth, even though sales rose at a double-digit pace. The company reported a loss of Rs 248.73 crore for the three months ended June 30, compared with Rs 233.73 crore a year earlier, according to its exchange filing cited by IANS.
Loss before tax increased to Rs 320.26 crore from Rs 259.50 crore a year earlier. Revenue from operations climbed 10.6% to Rs 2,025.56 crore from Rs 1,831.46 crore, but total expenses rose faster, reaching Rs 2,395.45 crore from Rs 2,148.75 crore.
The Ethnic and other businesses remained the biggest drag on performance. That segment posted a wider loss of Rs 188.54 crore, compared with Rs 178.82 crore in the same quarter last year, even as revenue increased to Rs 830.79 crore from Rs 754.57 crore. Pantaloons, by contrast, stayed marginally profitable, with earnings of Rs 3.48 crore on revenue of Rs 1,204.39 crore.
Business Standard and other industry publications reported that the retailer had already been under pressure in earlier quarters from a subdued consumption environment, a prolonged heat wave and a weak wedding season. The latest results suggest the company is still working through those headwinds, even as its overall turnover continues to grow. Shares of the company finished flat at Rs 63.41 on the National Stock Exchange on Friday, well below their 52-week high of Rs 94.95.
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