ABFRL Q3 preview: Firm likely to put up a mixed show; store expansion to aid growth

Aditya Birla Fashion and Retail Limited (ABFRL), the retail arm of Aditya Birla Group, is scheduled to release its Q3 numbers tomorrow, i.e., February 14, 2024. For the period under review, the apparel retailer, as per the Zee Business Research desk, is expected to post a consolidated loss of Rs 20 crore. In the year-ago period, the company reported a profit of Rs 11 crore.

The top line at the firm is seen growing 7 per cent on-year to Rs 3,858 crore as against Rs 3,589 crore logged during the same period last year. EBITDA, or earnings before interest, tax, depreciation, and amortisation, a measure of profitability in net income, is also seen inching higher by 11 per cent year-on-year (YoY). 

The profit margin at the company during the review period is seen gaining 40 basis points and coming in at 12.6 per cent versus 12.2 per cent in the same period last year. This is because employee expenses and other expenses are expected to come in higher for the quarter under review.

The Madura segment of the company is seen to log low single-digit growth in the range of 4-5 per cent. Further store expansion and consolidation at the company’s D2C subsidiary and TCNS Clothing are likely to fuel growth at the company.

Key monitorable

Investors should eye demand growth, store additions, and same-store sales growth (SSSG) at the retailer firm.