Sales increased 14% on innovation, higher advertising, says MD
Aditya Birla Fashion and Retail (ABFRL) on Tuesday saw its net profit fall by as much as 30% owing to higher tax in the quarter even as sales rose by about 14% for the second-quarter ended September.
The retailer of brands such as Pantaloons, Louis Philippe and Allen Solly said it clocked revenues of Rs.2,297 crore with a net profit of Rs.30 crore. “We have shown all-round improvement amidst reluctantly tough times. A combination of geographical expansion, product portfolio expansion, category innovation and increased advertising drove the sales,” said Ashish Dikshit, managing director, Aditya Birla Fashion and Retail, adding that the overall market outlook remained cautious.
The company’s lifestyle division expanded 15% driven by women’s and kids’ wear and aggressive expansion of Peter England brand in small town format. Pantaloons division reported a 16% increase in revenue. The company’s board also approved raising Rs.500 crore through non-convertible debentures via private placement basis.
