new Delhi According to a report by brokerage Edelweiss Securities, India’s top retailers in fast food, apparel wear and jewelery posted a strong sales recovery with overall revenues growing by 30%.
The report mapped the December quarter earnings of large, listed companies such as Titan Company Limited, Jubilant Foodworks, Aditya Birla Fashion Retail (ABFRL), V-Mart Retail, Shoppers Stop.
“The third quarter of FY12, on expected lines, was a record quarter for some (Titan, Page and Trent), with full recovery for others (apparel retailers). Overall, revenue grew 30% year-on-year,” the brokerage said in a report released on Friday.
Demand returned to normal for many retailers in the third quarter of the current fiscal – as the Covid wave eased and shoppers returned to their stores. However, the spurt in cases in late December as well as January once again stalled recovery for retailers.
For instance, in the December quarter, jewelery outperformed on the back of increased demand for weddings.
“We believe that growth may slow down in the times to come, but it will remain strong,” he said. Apparel retail driven by Trent and ABFRL witnessed the highest beat as the festive and wedding seasons were better than expected. Trent maintained his superior performance and record performance. Quick service restaurants saw an incremental recovery in dine-in drives, with quarter-on-quarter remaining stable. Jubilant Foodworks (JFL) was left behind by weak dine-in recovery, which was impacted by Omicron.”
Meanwhile, all QSR companies surpassed their pre-Covid levels of revenue with incremental recovery driven by dine-in as deliveries remained stable.
As well as apparel retailers, innerwear sellers reported steady progress, but brokerages flagged inflationary headwinds in the near term. This is especially true for value retailers.
“The festival and wedding season also became a trigger for apparel retailers, touching the pre-Covid revenue run rate, for the first time. Furthermore, divergence in recovery continued again with Trent outspacing peers. Page Industries continued its strong revenue growth (in-line). Margin pressure among players remains significant.”
All categories have now regained normalization and things are back on trajectory, except for the Omicron effect in January.
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