- 07 Feb 2022
- ICICIdirect Research
ABFRL reports strong operating performance with highest quarterly revenues
ABFRL - 312 Change: -1.95 (-0.62 %)News: ABFRL’s revenue grew 44% YoY to Rs.2987 crore. Revenue for the lifestyle segment grew 55% YoY to Rs.1589 crore while Pantaloons revenue grew 31% YoY to Rs.1066 crore on account of better product mix and lower discounting, gross margins improved ~230 bps YoY to 54.7% which led to EBITDA margin improvement of 190 bps YoY to 19.5%. Absolute EBITDA grew by 60% YoY to Rs.582 crore. On account of debt reduction, finance cost for Q3FY22 declined by 20% YoY to Rs.88.4 crore. Subsequently company reported PAT of Rs.197 crore vs. PAT of Rs.58.4 crore in Q3FY21.
Views: ABFRL reported better than estimated results due to improved consumer sentiment which led to a sharp demand recovery that was further amplified by a good wedding season. The aggressive store network expansion done by the company in the previous quarter is expected to aid revenue growth. Strong earnings & cash flows led to company achieving negative net debt level (cash surplus) during the quarter. With a stronger balance sheet, ABFRL will be able to pursue its growth ambitions and garner enhanced market share across various product categories.
Impact: Positive