ICICI Securities: Aditya Birla Fashion And Retail Poised For Gradual Recovery; Better Risk-Reward
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ICICI Securities Report
Aditya Birla Fashion And Retail Ltd.’s Revenue declined 85% YoY to Rs 3.2 billion owing to Covid-19 lockdown; while Ebitda loss (including other income) stood at Rs 1.8 billion in Q1 FY21.
Lifestyle business revenues declined 81% YoY to Rs 1.9 billion. In Lifestyle business, 81% of network was operational by June 2020-end with stores reaching 50% of pre-Covid sales in June 2020.
Management expects full normalcy of business operations by Q4 FY21. The company has launched ‘Work from Home’ collection, merchandise focused around health and safety during lockdown period. In June 2020, e-commerce orders (by value) increased 166% YoY and management expects share of online/e-commerce to double in FY21 from 6% in FY20.
Lifestyle business reported Ebitda loss of Rs 670 million. Aditya Birla Fashion and Retail witnessed higher demand for innerwear and athleisure mix, with June 2020 sales reaching 83% of last year.
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