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Aditya Birla Fashion and Retail Ltd on Monday reported a consolidated net loss of Rs 194.54 crore for the fourth quarter ended March 2023.

The company had posted a net profit of Rs 31.90 crore during the January-March quarter of the previous fiscal, Aditya Birla Fashion and Retail Ltd (ABFRL) said in a regulatory filing.

Its revenue from operations was Rs 2,879.73 crore during the quarter under review. It was Rs 2,282.83 crore in the corresponding period of the previous fiscal.

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“Net profit for the quarter was impacted due to negative operating leverage on the back of sluggish sales. The increase in marketing spending and continued investments in TMRW also impacted profitability in the quarter,” said ABFRL in its earning statement.

ABFRL’s total expenses were Rs 3,177.64 crore in Q4 FY23.

According to the Aditya Birla Group firm, its consolidated financial results for the quarter and year ended March 31, 2023, are not “comparable” with the quarter and year ended March 31, 2022.

This is due to the “acquisition of subsidiaries House of Masaba Lifestyle Private Limited w.e.f. June 01, 2022, Aditya Birla Digital Fashion Ventures Limited w.e.f. April 11, 2022, and Aditya Birla Garments Limited w.e.f. June 15, 2022”.

Its revenue in the March quarter from Madura Fashion & Lifestyle segment was Rs 2,155.68 crore and Rs 797.81 crore from its retail chain Pantaloons.

ABFRL has “closed the quarter with net debt of Rs 1,422 crore primarily on account of continued investments in new growth ventures”.

“Growth in quarterly revenue was propelled by robust retail like-to-like (LTL) sales across businesses, accelerated omnichannel play and network expansion as the company added 500+ stores in the last one year. Net profit for the quarter was impacted due to negative operating leverage on the back of sluggish sales,” it said.

For the fiscal ended March 2023, ABFRL’s loss was at Rs 59.47 crore. It reported a net loss of Rs 118.36 crore in FY22.

Its consolidated revenue from operations was Rs 12,417.90 crore in FY23.

Over the outlook, ABFRL said as the economic situation recovers, it remains focused on building strong brands and managing the businesses with flexibility and agility.

“With a long-term rise in discretionary consumption, the apparel industry is primed for significant growth bolstered by premiumisation and an accelerated shift from unbranded to branded products,” it said.

ABFRL, part of the Aditya Birla group, has an elegant bouquet of leading fashion brands and retail formats.

The company, which has a repertoire of leading brands, such as Louis Philippe, Van Heusen, Allen Solly and Peter England, besides fast fashion store Pantaloons, has a network of 3,977 stores across approximately 33,535 multi-brand outlets as of March 31, 2023.

Its international Brands portfolio includes – The Collective, India’s largest multi-brand retailer of international brands, and has long-term exclusive partnerships with select brands like Ralph Lauren, Hackett London, Ted Baker, Fred Perry, Forever 21, American Eagle and Reebok.

Shares of Aditya Birla Fashion and Retail Ltd on Monday settled at Rs 189.85 on BSE, up 0.58 per cent from the previous close.