Aditya Birla Fashion Q3 - Stellar Performance On Strong Gross Margins, Cost Measures: Motilal Oswal
Apparels on display inside Big Bazaar (Photographer Vijay Sartape/BloombergQuint) 

Aditya Birla Fashion Q3 - Stellar Performance On Strong Gross Margins, Cost Measures: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Aditya Birla Fashion and Retail Ltd.’s Q3 FY21 Ebitda (down 10% YoY) posted a massive 21% beat on better-than-expected revenue trends.

This was coupled with lower inventory markdown and strong cost measures, reflected in healthy gross margin recovery.

We revise our FY22E Ebitda by 17% on stronger recovery (estimated to recover to FY20 levels), coupled with better gross margins.

The company’s strong deleveraging (FY21 net debt estimated at approximately one-fourth of previous expectation) and high free cash flow should aid in renewing its aggressive growth as well as reduce the steep 2.5 times valuation gap versus peers

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Motilal Oswal Aditya Birla Fashion Q3FY21 Result Update.pdf

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