Hurt by soaring marketing expenses, Aditya Birla Fashion and Retail Ltd. (ABFRL) has reported a steep 92 per cent drop in third-quarter profit. The consolidated net profit of the company remained at Rs. 11.21 crore for the Q3 ended in December 2022 as against a net profit of Rs. 196.80 crore during the same period of the previous fiscal.
In a BSE filing, the company said that its revenue from operations increased 20.1 per cent to Rs 3,588.80 crore during the third quarter of FY ’23 as compared to Rs. 2,987.10 crore in the corresponding quarter of the previous financial year.
As per the regulatory filing, the company made accelerated marketing investments post a hiatus of two years across businesses as the company reinstated its rigour on augmenting its brands and building customer engagement.
Its marketing and strategic investments in new ventures increased by almost 2.3 times during the quarter. The company’s total expenses rose to Rs. 3,602.84 crore in Q3 of FY ’23 as compared to Rs.2,744.35 crore in the corresponding quarter of the last financial year.
The company’s branded business network gained 245 stores including newly integrated Reebok stores, with their ethnic business adding 15 new stores. The company’s network of a small-town format within Lifestyle brands has now crossed over 550 stores, with Pantaloons adding 10 new stores to the network.