Aditya Birla Fashion Retail (ABFRL) revenue from e-commerce more than doubled compared to its brands during January-March 2021 due to the adoption of the digital adoption pandemic, which forced the clothing manufacturer to estimate that its e-commerce is currently playing for years will surpass the growth of previous years.
The Pantaloons parent said his investments in hyper-local, WhatsApp store and mobile apps are likely to significantly increase his contribution to sales, according to his outlook given as part of his financial results released Friday.
The observations of the company that owns the brands Peter England, Allen Solly and Van Heusen come at a time when clothing retail was one of the worst affected categories due to the pandemic. A double blow from home, which has limited clothing purchases, and localized blockades, which restrict the operation of stores, have stopped sales in physical stores.
According to the company’s results released Friday, ABFRL saw net loss rise to 196 kroner in January-March 2021 from 147 kroner in the corresponding quarter of the previous fiscal year. The company reported a net profit of HRK 58 million during October-December 2020.
Revenue for the quarter rose to 1.822 million, from 1.832 million in the same period last year and 2,076 million in the previous quarter.
“Trade overruns began to fall with the accumulation of cases by mid-March in major cities. Initially, Mumbai’s malls were shut down, and later shutdowns were made across Maharashtra, Delhi and most parts of the country, affecting consumer mobility and retail sales.”
But online sales increased significantly during this quarter as we strengthened the e-commerce game over the past year through our own websites and independent channels, the company said. Channels that are not exclusively wholesale and retail, such as e-commerce, recorded a 30 percent jump in revenue to Rs 264 million during the quarter, it added.
The company also sold well in smaller towns, the announcement said.
For the entire financial year affected by the pandemic, the net loss rose to 736 million on March 31, 2021, from 165 million a year ago. Its revenue fell to 5,249 million from 8,788 at the end of March 2020.
ABFRL has launched more than 400 new stores in all companies and formats in the period 2020-21. Meanwhile, it has added channel capabilities to nearly 1,000 stores during the year.
The company streamlined costs of 1,200 crore during the year, mitigating COVID’s impact on profitability. This was due to a 98 percent reduction in rental costs and employee benefits.
By combining operating cash flows and capital inflows, it also reduced its debt from 2,511 crosses to 654 crosses.