8 November 2020
2QFY21 Results Update | Sector: Retail
Aditya Birla Fashion and Retail
Estimate changes
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
ABFRL IN
772
127.3 / 1.7
281 / 96
10/8/-27
305
CMP: INR153
TP: INR200 (+31% )
Buy
Aggressive cost rationalization, deleveraging efforts
to reap rewards
Financials & Valuations (INR b)
FY20 FY21E FY22E
Y/E March
Sales
87.4
54.5
78.9
EBITDA
12.3
3.3
11.0
Adj. PAT
-0.1
-6.0
-1.3
EBITDA Margin (%)
14.0
6.0
14.0
Adj. EPS (INR)
-0.2
-3.9
-0.7
EPS Gr. (%)
NM
NM
NM
BV/Sh. (INR)
14.0
8.0
7.4
Ratios
Net D:E
4.4
3.3
2.6
RoE (%)
NM
NM
NM
RoCE (%)
NM
NM
3.2
Payout (%)
0.0
0.0
0.0
Valuations
P/E (x)
NM
NM
NM
EV/EBITDA (x)
13.7
83.8
27.7
EV/Sales (x)
1.9
5.0
3.9
Div. Yield (%)
0.0
0.0
0.0
FCF Yield (%)
1.2
0.5
2.3
Shareholding pattern (%)
As On
Sep-20 Jun-20
Promoter
59.8
59.1
DII
22.3
22.7
FII
6.6
7.0
Others
11.3
11.3
FII Includes depository receipts
Aditya Birla Fashion and Retail (ABFRL)’s revenues were down 56% YoY (in-
line) due to lockdown. However, sharp cost rationalization, with a 45%
reduction in operational cost, cushioned EBITDA loss to INR17m (v/s EBITDA
profit of INR3.5b in 2QFY20).
We cut our revenue estimates by 13%/4% and EBITDA estimates by 38%/7%
for FY21E/FY22E due to sluggish recovery in the Apparel category, factoring
in FY22E revenue/EBITDA 10% below FY20 levels. Nevertheless, strong
deleveraging and earnings recovery from 2HFY21 would provide a double
advantage. Maintain Buy.
ABFRL’s 2QFY21 revenue fell 56% YoY to INR10.1b (in-line).
Revenue/EBITDA for the Lifestyle segment was down 58%/82% YoY to
INR5.3b/INR390m. Revenue/EBITDA for Pantaloons was down 60%/51%
YoY to INR3.7b/INR710m. Other businesses’ revenue was down 16%, but
EBITDA grew 13% to INR1.8b/INR260m.
Gross margins reduced 300bp YoY to 47%, with gross profits at INR4.8b (in-
line). SG&A/employee cost fell 45%/32% YoY and rent expenses also fell
36% YoY (12% below est.), leading to lower expenses. Strong cost reduction
led to better-than-estimated EBITDA loss to INR17m (v/s EBITDA profit of
INR3.5b YoY in 2QFY20; est. loss of INR1.2b).
Net loss thus came in at INR1.8b, supported by higher other income and tax
reversals (est. net loss of INR3.3b).
Net debt stood at INR31.6b, excluding the Flipkart deal amount of INR15b
and INR5b (i.e., 50%) of rights issue.
Revenue decline in the Lifestyle segment was accentuated by sharp 88%
decline in the Wholesale business from large formats. Own Retail biz sales
fell 42% YoY. Other categories, including Innerwear has already achieved
pre-COVID sales.
Expect 3QFY21 to garner 70–80% of last year’s sales, while in 4QFY21, sales
should normalize to pre-COVID levels.
It aims to bring debt to INR20–25b by FY21 from INR31.6b in 1HFY21,
(excluding the Flipkart investment) through a reduction in payables by
INR5b, an additional rights issue of INR2.5b, and earnings.
Online business revenues grew 3x YoY. Pantaloons online sales grew 4.3x
YoY. The Lifestyle segment should achieve online sales contribution of 12–
13%, and Pantaloons should increase to 4–5% over next 12-18 months.
It aims to add 100 new stores per year for the Lifestyle segment and around
25 stores for the Pantaloons brand, with capex of INR1.5b.
Revenue declines 56%; sharp cost measures support loss
Sep-19
59.1
20.8
9.7
10.4
Highlights from management commentary
Research Analyst: Aliasgar Shakir
(Aliasgar.Shakir@motilaloswal.com)
Suhel Shaikh
(Suhel.Ahmad@MotilalOswal.com) |
Anshul Aggarwal
(Anshul.Aggarwal@motilaloswal.com)
3 September
research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P
1
Motilal Oswal
2019
Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
Aditya Birla Fashion and Retail
Valuation and view
ABFRL’s execution over the last few years has been outstanding as the Lifestyle
segment reached scale of INR46b in FY20. Pantaloons’ EBITDA margin, since its
acquisition, has increased to 8.5% in FY20 from merely 2.3% in FY14.
The company’s high leverage has been a key concern of late, but the
management has raised INR10b from rights issue, which would bring down the
company’s debt to INR20–22b by Mar’21. Furthermore, investment of INR15b
from Flipkart would further bring down debt to nearly INR5b.
The Lifestyle segment and Pantaloons brand are well-placed to expand in the
Retail sector, and the management still expects to add stores aggressively in
both the Lifestyle segment and Pantaloons brand. We cut our revenue by
13%/4% in FY21E/FY22E due to sluggish recovery in the entire Apparel category,
factoring in FY22E revenue/EBITDA 10% below FY20 levels. Nevertheless, strong
deleveraging and earnings recovery from 2HFY21 would provide a double
advantage.
We value ABFRL on an SOTP basis and assign an EV/EBITDA multiple of 17x to
the Lifestyle segment and 16x to the Pantaloons brand, and EV/sales of 1x to
other businesses. Subsequently, we arrive at TP of INR200 (32% upside).
Maintain Buy.
FY20
2Q
3Q
4Q
1Q
22,972 25,625 18,174 3,200
14.4 12.3
-5.1
-84.5
19,510 21,534 16,614
6,713
3,462 4,091 1,561 -3,513
142.4 136.6
25.3 -211.9
2,213 2,208
2,325
2,334
1,052 1,047
1,186
1,253
162
145
169 1,765
358
981 -1,782 -5,335
289 1,315
-379 -1,336
80.7 134.0
21.3
25.0
69 -334 -1,403 -3,999
315
730 -1,403 -3,999
-26.2
3.8 -1,716.8 -1,954.9
FY21
2Q
3Q
10,186 20,221
-55.7 -21.1
10,203 16,971
-17 3,251
-100.5 -20.5
2,375 2,405
1,440 1,380
1,408
198
-2,424 -335
-611
-84
25.2 25.0
-1,813 -252
-1,813 -252
-674.6 -134.5
FY20 FY21E
4Q
20,897
15.0
17,347
3,551
127.6
2,467
1,171
198
112
28
25.0
84
84
-106.0
87,425
7.7
75,172
12,254
121.2
8,768
4,227
651
-91
1,361
-1497.2
-1,452
-142
-111.2
54,504
-37.7
51,233
3,271
-73.3
9,581
5,243
3,571
-7,983
-2,003
25.1
-5,980
-5,980
4111.1
(INR m)
FY21
Est
2QE Var (%)
9,824
3.7
-52.4
11,049
-7.7
-1,224
-98.6
-135.4
3486bps
2,395
1,258
500
-4,377
-44.6
-1,094
25.0
-3,283
-44.8
-3,283
-44.8
-1,622.6
Standalone - Quarterly Earning Model
Y/E March
Revenue
YoY Change (%)
Total Expenditure
EBITDA
Change, YoY (%)
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
Reported PAT
Adj PAT
YoY Change (%)
E: MOFSL Estimates
Key Performance Indicators
Y/E March
1Q
20,655
7.9
17,514
3,141
175.9
2,022
942
175
351
136
38.6
216
216
285.0
1Q
Pantaloons
SSSG (%)
Store Adds
Total Stores
EBITDA Margin (%)
Lifestyle Business
SSSG (%)
EBO Stores
- New stores
Value Stores
- New stores
EBITDA Margin (%)
Gross Margins (%)
EBITDA Margins (%)
PAT Margins (%)
E:MOFSL Estimates
8 November 2020
4%
6
314
18.4
3.2
2,057
77
449
23
13.4
51.9
15.2
1.0
FY20
2Q
10%
17
331
15.8
7.0
2,096
60
448
-1
16.5
50.3
15.1
1.4
3Q
5%
12
343
10.1
15.0
2,187
91
469
21
7.4
52.0
16.0
2.8
4Q
-12%
-1
342
-6.1
-6.0
2,253
66
446
-23
0.0
51.3
8.6
-7.7
1Q
-92%
0
342
-87.8
-86.0
2,222
-31
440
-6
-44.3
41.4
-109.8
-125.0
FY21
2Q
-57%
-3
339
19.2
-50.0
2,247
25
439
-1
9.2
47.4
-0.2
-17.8
FY20
3Q
-25%
10
349
6.4
-22.0
2,277
30
444
5
6.9
49.5
16.1
-1.2
4Q
10%
8
357
16.2
-0.8
2,333
56
456
12
3.2
51.9
17.0
0.4
3%
34
342
10.8
6.8
2,253
273
446
20
9.5
51.9
14.0
-0.2
FY21E
-44%
15
357
8.4
-37.6
2,333
80
456
10
2.5
49.5
6.0
-11.0
2
 Motilal Oswal Financial Services
Aditya Birla Fashion and Retail
Other highlights
Net debt stood at INR31.6b, excluding the Flipkart deal amount of INR15b and
INR5b (i.e. 50%) of rights issue. Cash & CE stood at INR3.4b.
Inventories declined 11% to INR21b.
96% of stores were operational as of Sep’20.
1HFY21 revenues stood at INR13.4b (-70% YoY), while EBITDA loss was at
INR3.5b (v/s EBITDA profit of INR6.6b in 1HFY20).
Exhibit 1: FY22 SOTP-based valuation
Particulars
Lifestyle Brands (gross EBITDA)
Pantaloons (gross EBITDA)
Others (gross sales)
Total EV (net)
Less: Net debt
Equity Value
No of Shares (m)
Target Price (INR)
CMP (INR)
Upside (%)
EBITDA/Sales (INR m)
6,110
5,664
9,310
Multiple (x)
17
16
1
Value (INR m)
103,877
90,053
9,310
203,240
34,986
168,254
839
200
152
32%
Source: MOFSLL, Company
Exhibit 2: ABFRL – One-year forward P/E band
30
22
17.9
14
8.8
6
13.3
7.8
P/B (x)
Min (x)
Avg (x)
+1SD
Exhibit 3: ABFRL – One-year forward EV/EBITDA band
Max (x)
-1SD
EV/EBITDA (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
28.6
60
57.0
35.5
24.7
13.9
6.8
19.7
40
20
0
22.0
Source: Bloomberg, MOFSL
Source: Bloomberg, MOFSL
Highlights from management commentary
Business operations
Wholesale revenues:
Wholesale revenues declined as business from large-
format stores (LFS) was more severely impact due to multiple factors. a) These
stores operate in malls and urban areas, which were closed for a longer period.
b) Many LFS used existing inventory instead of ordering fresh inventory. Hence,
while secondary sales were happening, primary sales were limited.
Other categories, including Innerwear, have already achieved pre-COVID sales.
Cost optimization:
It achieved cost optimization of INR8.7b in 1HFY21.
Other income:
Other income included rent concession of INR1.2b.
Payables:
Payables declined by INR5b in 1HFY21 as there was no fresh inventory
buying, while the company supported vendors to manage their liquidity.
Net debt:
Net debt declined by INR900m to INR31.6b in 1HFY21. It aims to bring
debt to INR20b–25b, excluding the investment from Flipkart.
8 November 2020
3
 Motilal Oswal Financial Services
Aditya Birla Fashion and Retail
Online sales:
Online business revenues grew 3x YoY. Online sales for Pantaloons
increased 4.3x YoY. The Lifestyle segment should achieve online sales
contribution of 12–13%, and Pantaloons should increase to 4–5% over next 12-
18 months.
Pantaloons:
Pantaloons added seven new stores in 2QFY21, along with new
brand entities that would be rolled out to other stores.
Other businesses:
Innerwear and Athleisure sales are higher v/s last year.
Business outlook
Expect 3QFY21 to achieve 70–80% of last year’s sales, while in 4QFY21, sales
should normalize to pre-COVID levels.
International brands:
Collective and others have delivered well and are inching
toward profitability.
Pantaloons:
Expect Pantaloons to grow 2–5% over the next 12–18 months.
Pantaloons would add 25 stores annually in the current fiscal.
New stores:
It aims to add over 100 new stores per year for the Lifestyle
segment and around 25 stores for the Pantaloons brand, with capex of INR1.5b.
Cost of retailing:
Cost of retailing is expected to be 30–35% of sales.
Flipkart investment:
The Flipkart investment is a financial investment to
strengthen the balance sheet.
Strategy:
It plans to grow the existing business and the Innerwear and Ethnic
Wear segments, along with strengthening its focus on the online channel.
Exhibit 4: Standalone quarterly performance (INR m)
Revenue
Raw Material cost
Gross Profit
Gross margin (%)
Employee Costs
Rent
SGA Expenses
EBITDA
EBITDA margin (%)
Depreciation and amortization
EBIT
EBIT margin (%)
Finance Costs
Other income
Profit before Tax
Tax
Tax rate (%)
Profit after Tax
Adj Profit after Tax*
2QFY20
22,972
11,418
11,554
50.3
2,477
1,020
4,596
3,462
15.1
2,213
1,248
5.4
1,052
162
358
289
80.7
69
315
1QFY21
3,200
1,874
1,326
41.4
2,407
280
2,152
-3,513
-109.8
2,334
-5,847
-182.7
1,253
1,765
-5,335
-1,336
25.0
-3,999
-3,999
2QFY21
10,186
5,354
4,832
47.4
1,691
652
2,508
-17
-0.2
2,375
-2,393
-23.5
1,440
1,408
-2,424
-611
25.2
-1,813
-1,813
YoY%
QoQ%
2QFY21E
v/s est (%)
-55.7
218.3
9,824
3.7
-53.1
185.7
5,109
4.8
-58.2
264.5
4,716
2.5
-286bps
601bps
48.0
-56bps
-31.7
-29.8
1,572
7.6
-36.1
133.1
737
-11.6
-45.4
16.5
3,631
-30.9
-100.5
-99.5
-1,224
NM
-1524bps
10963bps
-12.5
1229bps
7.3
1.8
2,395
-0.8
-291.7
-59.1
-3,619
-33.9
-2893bps
15926bps
-36.8
1335bps
36.8
14.9
1,258
14.5
768.3
-20.2
500
181.7
-776.6
-54.6
-4,377
-44.6
NM
NM
-1,094
NM
NM
19bps
25.0
22bps
NM
NM
-3,283
NM
NM
NM
-3,283
NM
*adjusted for DTA impact; Source: MOFSL, Company
8 November 2020
4
 Motilal Oswal Financial Services
Aditya Birla Fashion and Retail
Exhibit 5: Segment-wise performance
Segment wise Performance
Madura
Revenue
EBITDA
EBITDA margin (%)
Pantaloons
Revenue
EBITDA
EBITDA margin (%)
9,150
1,450
15.8
820
-720
-87.8
3,690
710
19.2
-59.7
-51.0
339bps
350.0
-198.6
10705bps
3,980
-1,200
-30.2
-7.3
NM
NM
14,630
2,410
16.5
2,370
-1,050
-44.3
7,060
650
9.2
-51.7
-73.0
-727bps
197.9
-161.9
5351bps
6,190
-908
-14.7
14.1
NM
NM
2QFY20
1QFY21
2QFY21
YoY%
QoQ%
2QFY21E
v/s est (%)
Source: MOFSL, Company
Exhibit 6: Segment-wise Madura’s performance
Madura Segments
Lifestyle
Revenue
EBITDA
EBITDA margin (%)
Fast Fashion
Revenue
EBITDA
EBITDA margin (%)
Other businesses
Revenue
EBITDA
EBITDA margin (%)
2QFY20
12,540
2,180
17.4
750
-90
-12.0
1,340
320
23.9
1QFY21
1,900
-670
-35.3
141
-111
-78.7
329
-259
-78.7
2QFY21
5,310
390
7.3
525
-78
-14.9
1,225
338
27.6
YoY%
-57.7
-82.1
-1004bps
-30.0
NM
NM
-8.6
5.6
371bps
QoQ%
179.5
-158.2
4261bps
272.3
NM
NM
272.3
-230.5
10632bps
2QFY21E
4,640
-557
-12.0
210
-126
-60.0
1,340
-225
-16.8
v/s est (%)
14.4
-170.0
1934bps
150.0
NM
NM
-8.6
-250.2
4438bps
Source: MOFSL, Company
Exhibit 7: Summary of estimate change
FY21E
Revenue (INR m)
Old
Actual/New
Change (%)
EBITDA (INR m)
Old
Actual/New
Change (%)
EBITDA margin (%)
Old
Actual/New
Change (bp)
Net Profit (INR m)
Old
Actual/New
Change (%)
EPS (INR)
Old
Actual/New
Change (%)
62,626
54,504
-13.0
5,313
3,271
-38.4
8.5
6.0
-248
-4,523
-5,980
NM
-3.0
-3.9
NM
FY22E
82,077
78,855
-3.9
11,899
11,040
-7.2
14.5
14.0
-50
-1,148
-1,290
NM
-0.6
-0.7
NM
Source: Company, MOFSL
8 November 2020
5
 Motilal Oswal Financial Services
Aditya Birla Fashion and Retail
Story in charts
Exhibit 8: Standalone revenue declines 56% YoY
Revenue (INR b)
12 4 12
25
YoY growth (%)
Exhibit 9: Gross margin shrinks 300pp YoY
Gross Profit (INR b)
Gross margin (%)
47
56
53
54 55 53
52 53 53 52
52 50
53
54 50
52 51
41
-56
-85
-4
9 9 9 11
23
9 8 14 12
-5
Exhibit 10: EBITDA achieves breakeven
EBITDA margin (%)
15 15 16 9
5 9 5
7
4 5 7 9 6 7 8 7
EBITDA (INR b)
Exhibit 11: PAT trend (INR b)
PAT (INR b)
0
PAT margin (%)
-18
11 1 0
-1 -8
-1 3 -1 1 -1 -1 2 6 0 2 3
-110
-125
Exhibit 12: Madura posts revenue of INR7b
Revenue (INR b)
24.7
7.9
5.1
-0.7
-4.4
4.7
12.2
11.1
YoY growth (%)
18.2
13.6
9.7
13.9
-6.8
15.9
-80.4
Exhibit 13: Pantaloons reports EBITDA loss of INR3.7b
Revenue (INR b)
22
-51.7
31
12
10
27
2 12 9
11
6
28
YoY growth (%)
16
-1 9
13
-91
-1
-60
-4.8
12.8
Exhibit 14: Madura’s EBO increases by 25 in 2QFY21
Total EBO
28 29 15 25
-20
EBO adds
59 62
21
-31
Exhibit 15: Pantaloons store count declines to 339
Total stores
Store adds
30
25
4
13
19
7
6
14
6
6
77
60
91
66
17
12
-1
0
-3
Source: Company, MOFSL
Source: Company, MOFSL
8 November 2020
6
 Motilal Oswal Financial Services
Aditya Birla Fashion and Retail
Financials and valuations
Standalone – Income Statement
Y/E March
Total Income from Operations
Change (%)
Raw Materials
Employees Cost
Rent
Other Expenses
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
Standalone – Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Total Loans
Lease Liability
Deferred Tax Liabilities
Capital Employed
Net Fixed Assets
Right to use Assets
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
FY15
18,507
11.4
10,004
1,837
2,825
3,114
17,780
96.1
727
3.9
1,835
-1,108
1,202
28
-2,281
0
-2,281
0
0.0
-2,281
-2,281
21.5
-12.3
FY16
60,339
226.0
27,518
6,205
9,032
13,801
56,555
93.7
3,784
6.3
3,381
403
1,765
264
-1,098
0
-1,098
0
0.0
-1,098
-1,098
-51.9
-1.8
FY17
66,029
9.4
30,070
7,058
10,871
13,638
61,637
93.3
4,392
6.7
2,425
1,967
1,797
382
552
0
552
0
0.0
552
552
-150.3
0.8
FY18
71,721
8.6
33,901
7,723
10,429
14,985
67,038
93.5
4,683
6.5
2,805
1,878
1,716
328
490
0
490
-688
-140.5
1,178
494
-10.5
0.7
FY19
81,177
13.2
39,250
9,130
11,104
16,153
75,637
93.2
5,541
6.8
2,823
2,717
1,874
648
1,491
0
1,491
-1,721
-115.4
3,212
1,273
157.7
1.6
FY20
87,425
7.7
42,058
10,584
4,869
17,661
75,172
86.0
12,254
14.0
8,768
3,486
4,227
651
-91
0
-91
1,361
-1497.2
-1,452
-142
-111.2
-0.2
FY21E
54,504
-37.7
27,499
8,176
3,196
12,363
51,233
94.0
3,271
6.0
9,581
-6,310
5,243
3,571
-7,983
0
-7,983
-2,003
25.1
-5,980
-5,980
4,111.1
-11.0
(INR m)
FY22E
78,855
44.7
38,195
9,857
4,928
14,835
67,815
86.0
11,040
14.0
8,978
2,062
4,126
344
-1,720
0
-1,720
-430
25.0
-1,290
-1,290
-78.4
-1.6
(INR m)
FY22E
17,740
-4,151
13,589
39,437
24,674
-1,950
51,076
33,910
21,744
401
1,700
48,119
25,925
7,561
2,750
11,882
33,054
21,604
9,722
1,728
15,065
51,075
FY15
928
9,211
10,139
16,864
0
27,003
24,681
157
0
19,796
11,503
4,085
270
3,938
17,631
12,415
4,621
595
2,165
27,003
FY16
7,688
1,367
9,055
15,436
0
24,491
23,232
254
0
22,338
14,105
3,124
192
4,917
21,334
14,298
6,290
746
1,005
24,491
FY17
7,705
1,876
9,582
20,446
0
30,028
24,871
250
0
25,238
14,313
4,522
497
5,907
20,331
14,578
3,823
1,929
4,907
30,028
FY18
7,717
3,214
10,931
18,615
-688
28,857
25,823
459
42
30,326
16,912
5,518
728
7,168
27,793
20,093
5,780
1,920
2,533
28,858
FY19
7,735
6,554
14,289
17,029
-2,634
28,684
25,555
224
42
37,756
19,213
7,866
574
10,103
34,893
23,986
8,885
2,023
2,863
28,684
FY20
7,740
3,119
10,859
52,437
24,674
-1,950
61,346
47,319
21,744
401
1,700
45,520
23,494
8,402
2,651
10,974
33,594
22,733
9,011
1,850
11,926
61,346
FY21E
15,240
-2,861
12,379
47,437
24,674
-1,950
57,866
39,738
21,744
401
1,700
45,146
21,652
7,466
4,898
11,129
29,119
20,906
6,720
1,493
16,027
57,866
8 November 2020
7
 Motilal Oswal Financial Services
Aditya Birla Fashion and Retail
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
Standalone – Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
less: Other Bank Balance
Net Closing Balance
FY15
-3.0
-0.6
13.2
0.0
0.0
-54.0
-275.9
12.2
1.7
43.2
0.0
-16.4
-28.6
-5.0
-5.3
0.6
0.7
227
81
245
1.1
-0.9
1.6
FY16
-1.4
3.0
11.8
0.0
0.0
-112.3
54.0
13.6
2.3
36.5
0.0
1.3
-11.4
2.6
1.6
2.4
2.5
85
19
86
1.0
0.2
1.7
FY17
0.7
3.9
12.4
0.0
0.0
223.3
41.4
12.9
2.2
32.6
0.0
-0.3
5.9
8.6
7.4
2.4
2.2
79
25
81
1.2
1.1
2.1
FY18
0.6
4.3
14.2
0.0
0.0
249.5
37.4
11.3
2.0
30.2
0.0
3.5
4.8
17.8
15.9
2.3
2.5
86
28
102
1.1
1.1
1.6
FY19
1.6
5.3
18.5
0.0
0.0
97.2
30.1
8.6
1.7
25.3
0.0
3.2
10.1
23.8
21.1
2.4
2.8
86
35
108
1.1
1.4
1.1
FY20
-0.2
11.1
14.0
0.0
0.0
-872.1
14.4
11.4
2.0
14.2
0.0
2.5
-1.1
139.7
131.9
1.4
1.4
98
35
95
1.4
0.8
4.4
FY21E
-3.9
2.4
8.1
0.0
0.0
-38.7
64.3
18.7
5.0
83.8
0.0
0.9
-51.5
-3.3
-8.8
0.8
0.9
145
50
140
1.6
-1.2
3.3
FY22E
-0.7
4.3
7.7
0.0
0.0
-209.0
35.1
19.8
3.9
27.7
0.0
4.0
-9.9
3.2
3.2
1.1
1.5
120
35
100
1.5
0.5
2.6
(INR m)
FY22E
-1,720
8,978
4,126
430
-1,185
10,629
-344
10,285
-3,150
7,135
0
346
-2,804
2,500
-8,000
-4,126
0
-9,626
-2,146
4,896
2,750
1
2,749
FY15
-2,281
1,835
1,202
-15
-1,096
-357
-3
-359
-1,163
-1,522
75
198
-889
0
2,602
-1,191
0
1,411
162
108
271
1
270
FY16
-1,098
3,381
1,765
-19
-741
3,288
-179
3,109
-2,076
1,033
0
219
-1,857
-16
508
-1,821
0
-1,330
-78
270
192
2
190
FY17
535
2,425
1,761
-30
-573
4,118
134
4,252
-4,499
-247
4
40
-4,455
11
1,948
-1,450
0
509
306
190
496
1
495
FY18
490
2,805
1,669
-10
760
5,714
237
5,951
-3,271
2,680
-36
58
-3,250
12
-1,832
-649
0
-2,469
233
495
727
2
725
FY19
1,491
2,823
1,846
-196
-937
5,028
249
5,276
-2,792
2,484
22
6
-2,763
9
-1,576
-1,098
0
-2,664
-151
725
574
2
571
FY20
-91
8,768
4,200
-61
-6,082
6,734
-117
6,617
-4,668
1,949
-11,079
7
-5,740
72
10,725
-4,226
-5,370
1,202
2,079
571
2,650
1
2,649
FY21E
-7,983
9,581
5,243
2,003
-1,853
6,991
-3,571
3,421
-2,000
1,421
0
3,572
1,572
7,500
-5,000
-5,243
0
-2,743
2,249
2,649
4,898
1
4,896
8 November 2020
8
 Motilal Oswal Financial Services
Aditya Birla Fashion and Retail
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
< - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30
days take appropriate measures to make the recommendation consistent with the investment rating legend.
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8 November 2020
9
 Motilal Oswal Financial Services
Aditya Birla Fashion and Retail
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through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory services is backed by proper research. Please read the Risk
Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee of the returns. Investment in securities market is subject to market risk,
read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOFSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National Company
Law Tribunal, Mumbai Bench.
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8 November 2020
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