Aditya Birla Fashion and Retail Ltd (ABFRL) on Thursday reported a consolidated net loss of Rs 410.36 crore for quarter ended June, impacted by the coronavirus pandemic. The company had posted a net profit of Rs 21.56 crore in the same quarter a year ago.
According to a PTI report: Total income during the quarter under review stood at Rs 501.54 crore. It was at Rs 2,082.97 crore in the year-ago period, ABFRL said in a regulatory filing.
The June quarter has been one of the most challenging quarters for the company and for the overall Indian apparel industry, ABFRL said.
The operations of the company were severely impacted due to the unprecedented economic standstill induced by the pandemic, it added.
During April and May, most of the retail network was closed, while e-commerce sales too restarted only in the third week of May, when the restrictions on non-essential products were lifted, the company said.
“Stores started to open during the month of June, although operational hours were restricted in many places which slowed down the return to normalcy. By the end of June, nearly 80 per cent of our network had re-opened. The results of this quarter should be seen in the above context,” it said.
As the pandemic struck, the company embarked on a series of cost reduction initiatives including renegotiating rentals at stores, offices, and warehouses, cutting discretionary costs along with curtailing overhead expenses.
The company said it managed to bring down costs by more than Rs 450 crore over the previous quarter, on account of these measures.
The company added that it is confident of consistent improvement in business performance over the next two quarters and expects to achieve full normalcy by the fourth quarter of FY21.