Aditya Birla Fashion & Retail Q2 Review - Margin Surprises As Demand Recovers: ICICI Securities

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..ICICI Securities Report.Aditya Birla Fashion and Retail Ltd.’s Q2 FY22 consolidated Ebitda margin expansion of 100 basis points versus pre-Covid-19 was ahead of our /consensus expectations despite 89% pre-Covid-19 revenue recovery, led by strong cost control and rent concessions. Lifestyle brands saw 92% pre-Covid revenue recovery with retail channel sales 25% ahead of pre-Covid levels, while Pantaloons witnessed slower revenue recovery (73% of pre-Covid levels). As highlighted in our recent note, margins to surprise as demand bounces back, we believe earnings of apparel brands and retail companies may surprise positively led by faster-than-expected demand recovery and expect consensus to turn more constructive with Q2 FY22 management commentary.Factoring in better demand recovery, we increase our FY23E-FY24E Ebitda/profit after tax of Aditya Birla Fashion by 5-7%..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Aditya Birla Fashion & Retail Q2 Review - Margin Surprises As Demand Recovers: ICICI Securities

Aditya Birla Fashion & Retail Q2 Review - Margin Surprises As Demand Recovers: ICICI Securities

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