Aditya Birla Fashion - Some Recovery, Cost Savings Seen In Q4: Motilal Oswal

Merchandise is displayed at a Pantaloons store at Ambience Mall in New Delhi. (Photographer Graham Crouch/Bloomberg).

Aditya Birla Fashion - Some Recovery, Cost Savings Seen In Q4: Motilal Oswal

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Motilal Oswal Report

Aditya Birla Fashion and Retail Ltd.’s revenue fell 2% YoY (in-line).

However, healthy 200 basis point gross margin improvement (better than even pre Covid-19 levels) and strong cost management (aided by rent/employee cost savings) drove a 65% YoY Ebitda jump.

Nevertheless, the company posted net loss of Rs 1.3 billion (in-line) on tax and other income impact.

Given the lockdowns amid the second Covid-19 wave, we cut our FY22 revenue/Ebitda estimate by 29%/74%, marginally above FY21 levels.

However, we expect swift recovery in FY23E, keeping the revenue/Ebitda estimate intact at 13%/16% above FY20 stable-state financials.

Click on the attachment to read the full report:

Motilal Oswal Aditya Birla Fashion Q4FY21 Result Update.pdf


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