Aditya Birla Fashion and Retail Ltd (ABFRL) reported a decline of 94.3% due to an increase in marketing and strategic expenditures in new projects, and  in its consolidated net profit at Rs 11.21 crore for the third quarter ended December 31, 2022.

Aditya Birla Fashion and Retail Ltd (ABFRL) said in a regulatory filing that the business had a net profit of Rs 196.80 crore during the quarter from October to December of the previous fiscal.

When compared to the same quarter a year prior, its operating revenue increased 20.14% to Rs 3,588.80 crore from Rs 2,987.10 crore. ABFRL stated in its financial statement that a 2.3 times rise in marketing and strategic investments in new projects had a negative impact on net profits for the quarter.

Its overall costs came to Rs 3,602.84 in the Up 31.28% for the third quarter of FY23.

Strong like-to-like across branded businesses and continuous e-commerce performance were the main drivers of growth in the quarter. The company resumed its rigour in enhancing its brands and increasing customer interaction, it added. The quarter also witnessed enhanced marketing investments across companies after a two-year sabbatical.

On the strength of the resurgence of the wholesale business and strong retail sales, its revenue from the “Madura Fashion & Lifestyle” sector increased 23.87% to Rs 2,465.70 crore from Rs 1,990.52 crore a year ago.

Notwithstanding the third wave of COVID’s impact on large format stores, Pantaloons’ revenue increased 8.65% to Rs. 1,158.72 crore from Rs. 1,066.43 crore in the prior quarter.

ABFRL maintained network growth, adding 15 new stores to its ethnic business network while adding 245 to its branded business network, including newly integrated Reebok outlets. The network of Pantaloons gained 10 additional stores, bringing the total to 406.