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									                 BHRL – Q3 FY2010 Financial Result Highlights

                     Net Sales increased by 26% at Rs 1905 million
                                PAT rises 50% to Rs 70 million

     Mumbai, 30 January 2010: Brandhouse Retails Limited (BHRL), one of the
     leading fashion retailers in India, today announced its results for the third quarter
     and nine months ended 31 December 2009.

     Financial performance update:

     Q3 FY2010 results compared with Q3 FY2009 results:

             Revenues at Rs 1905.0 million versus Rs 1512.9 million, up 25.92%
             EBIDTA higher by 66.80% to Rs 167.3 million from Rs 100.3 million
             Net profits enhances 50.43% to Rs 70.4 million from Rs 46.8 million
             EPS (not annualized) at Rs 1.31

     9M FY2010 results compared with 9M FY2009 results:

             Net income from operations up 23.22% to Rs 5043.8 million as compare to Rs
             4093.3 million
             EBIDTA rises 46.62% to Rs 434.3 million from Rs 296.2 million
             Net profits at Rs 189.6 million from Rs 121.6 million, up 55.84%
             EPS (not annualized) at Rs 3.54

     Commenting on the Q3 FY2010 results, Mr. Nitin S. Kasliwal, Chairman and
     Managing Director, BHRL said,

     “I am pleased to announce healthy financial and operating results during the quarter under
     review. Our performance has endured on the back of strong foothold in the branded space,
     where we are present across various segments of domestic retail markets. The rising consumer
     appetite is leading to greater confidence and we stand to benefit in this market upsurge.

     Given our widening store network across key retail points in the country, we have been able
     to deliver continuous revenue growth which is translating into a stronger profit performance.
     As part of our strategy to enhance our earnings, we are expanding our own store network and
     are focused on improving our key operational matrix which include better working capital

Q3 / 9M FY2010 Result Release                     1
     rotation, higher per square foot sales, improving same store sales and well considered new
     store expansions.

     The retail space continues to offer abundant prospects in India and we intend to maximize the
     benefit going forward.”

      Financial snapshot:
                                                                                (Rs in million)
                                  Q3              Q3     Change     9M            9M              Change
      Particulars               FY2010          FY2009    (%)      FY2010        FY2009            (%)

      Revenues                   1905.0         1512.9     25.92    5043.8         4093.3           23.22

      EBIDTA                      167.3          100.3     66.80     434.3          296.2           46.62

      Margin (%)                    8.78          6.63                 8.61          7.24

      PBT                         101.3           64.7     56.57     284.8          196.6           44.86

      Margin (%)                    5.32          4.28                 5.65          4.80

      PAT                           70.4          46.8     50.43     189.6          121.6           55.84

      Margin (%)                    3.70          3.09                 3.76          2.97

     Store information

                                                              Carpet Area
      Brand                 Stores (Nos)                    (Sq feet in Lacs)

      Reid & Taylor                    324                                  4.42

      Belmonte                         231                                  2.12
      house                            205                                  2.04
      Brothers                             21                               0.32

      Dunhill                               3                               0.04

      Total                           784                                 8.94

Q3 / 9M FY2010 Result Release                        2
     Financial performance analysis:

     In Q3 FY2010, BHRL’s revenues were higher by 25.92% to Rs 1905.0 million on
     account of better same store sales and enhanced volumes through opening of new
     stores across the country.

     Total expenditure in the period under review, excluding interest & depreciation,
     increased by 23.02% to Rs 1737.7 million from Rs 1412.6 million.

     Pan-India rentals have corrected over the last 12 months and BHRL has been
     successful in negotiating highly competitive occupancy costs for its stores. The
     Company’s scouting team is continuously working on reducing the cost on this
     parameter further with a view to contain fixed operating cost of the business.

     EBIDTA during the quarter stood at Rs 167.3 million as compared to Rs 100.3 million,
     an increase of 66.80%. BHRL has been successful in enhancing its EBIDTA margins to
     8.78% from 6.63% in the quarter under review. Revival in consumer sentiment has
     provided strong tailwinds to the Company’s EBIDTA performance. This healthy
     growth in EBIDTA is also reflective of the sound business model of the Company,
     the strength of its strategies and its partner brands.

     BHRL is focussing on expanding its Company managed stores network, where the
     own store model has a superior EBIDTA, which should lead to further improvement
     of earnings EBIDTA performance going forward.

     Interest Cost
     The interest expense for Q3 FY2010 increased 145% to Rs 51.3 million compared to Rs
     20.9 million. Interest expense has increased as a result of availing additional working
     capital finance to ensure smooth working of day to day operations of the company.

     PBT increased by 56.57% to Rs 101.3 million from Rs 64.7 million.

     Net Profit
     Net profit for the quarter grew 50.43% to Rs 70.4 million from Rs 46.8 million in Q3
     FY2009 translating to an EPS (not annualised) of Rs 1.31. For 9M FY2010, the PAT
     was Rs 189.6 million resulting to an EPS (not annualised) of Rs. 3.54.

Q3 / 9M FY2010 Result Release                  3
     BHRL remains confident of achieving continued growth in performance. The
     optimism is driven by the strong existing store network, sustained expansion of new
     stores, having a portfolio of brands that attract customers, presence across socio-
     economic segments and reviving consumer sentiment.

     There has been an overall improvement in the demand scenario resulting in
     noticeably better consumer confidence in the ‘high-retail-sale’ festive season.

     About Brandhouse Retails Limited:
     Brandhouse Retails Limited is one of India’s leading retail master franchisers that has
     interests in retailing fashion and lifestyle products. The Company is involved in
     developing and managing exclusive brand outlets EBOs for a multiple set of brands.

     BHRL currently carries a host of reputed brands that cater to various segments of the
     Indian retail market. The brands under the BHRL umbrella include Reid and Taylor,
     Stephens Brothers, Carmichael House, Belmonte, and Dunhill. Going forward, the
     BHRL portfolio will include SKNL brands, premium international brands and
     international luxury brands. The management plans to actively scout for various
     international brands that may be suitable for the Indian market.

     The Company aims to be the number one retailer for high value textiles and
     fashionable clothing in the country going forward.

     For more details, please visit:

     For further information please contact:

     Salil Bawa                                                        Vikram Gurnani/ Anoop Poojari
     Tel: +91 22 2493 3185                                             Citigate Dewe Rogerson
     Email:                                   Tel: +91 22 4007 5008 / 5006
                                                                       Email: /

     Certain statements in this document may be forward-looking statements. Such forward-looking
     statements are subject to certain risks and uncertainties like government actions, local political or
     economic developments, technological risks, and many other factors that could cause our actual results
     to differ materially from those contemplated by the relevant forward-looking statements. Brandhouse
     Retails Limited (BHRL) will not be in any way responsible for any action taken based on such
     statements and undertakes no obligation to publicly update these forward-looking statements to reflect
     subsequent events or circumstances.

Q3 / 9M FY2010 Result Release                          4
     [Attached: BHRL Background Information]

     Company background information

     Brandhouse Retails Limited (BHRL) is a leading retail master franchisee that has
     interests in retailing Apparel, Textiles and Home Textiles. The company was
     incorporated in 2004 and was listed on NSE and BSE on 27 March, 2009.

     The company has extensive experience in the field of retailing. As part of the Master
     Franchisee business, BHRL is involved in setting up and managing exclusive brand
     outlets (EBOs) for a multiple set of brands that cater to diverse socio-economic
     groups and varying preferences in the fashion and lifestyle space. Currently, the
     brands under the BHRL umbrella include Reid & Taylor, Stephens Brothers,
     Belmonte, Carmichael House and Dunhill. All of these brands are displayed in the
     EBO format adopted by the Company in its various locations across India. As on 31
     December 2009, the company has a pan-India presence with 784 outlets and has an
     aim to increase this number to around 800 outlets by the end of FY2010.

     The BHRL Advantage:

     Specialized retailer:
     BHRL is a retail centric Company that is involved setting up and operating mono
     brand outlets for a multiple set of brands with a special focus on the fashion and
     lifestyle space. Owing to the focused nature of its activities, BHRL’s management
     team has gained substantial expertise in the fields of retail, marketing and

     Established brand strategy:
     BHRL has adopted a strategy of offering brands that are already established and
     have a high degree of brand recall thereby maximizing the success rate of a
     particular brand. Further, in the terms of agreement with partner brands one of the
     salient features provides that the brand building and advertising costs be borne by
     the brand owners. These two strategies have facilitated instant and sustained brand
     performance with minimal brand building and advertisement costs that are
     otherwise substantial.

Q3 / 9M FY2010 Result Release                 5
     Reid & Taylor, one of BHRL’s major growth drivers, has swiftly become a house hold
     name in a short time span ever since its inception in 1998. BHRL offers Reid & Taylor
     through 324 stores as of 31 December 2009, across India and plans to scale up its
     operations going forward. Stephens Brothers, Belmonte and Carmichael House also
     have a healthy recall in their respective segments. Dunhill needs no introduction,
     and is a leading international luxury brand with a healthy demand in metro cities.
     Going forward, in line with corporate strategy, BHRL plans to scout for offerings that
     have a good degree of brand equity.

     Delivery of uniform international retail experience:
     Owing to its retail specific approach, BHRL has been successful in maintaining an
     immaculately consistent store ambience and uniform store-keeper mannerisms
     across its outlets all over India. The Company has achieved this by implementing
     stringent quality standard mechanisms to assure ambience consistency and by
     setting up regular training and career development programs in order to retain top
     quality manpower.

     Strong mix of brands catering to various sectors of the Indian retail sector:
     BHRL has an ideal blend of brands that cater to various preferences and price points
     enabling it to penetrate smaller cities with its budget brands and bigger cities with its
     premium, super-premium and luxury brands.

     The Brands:

     Reid & Taylor:
     Born in Scotland, 165 years ago, Reid & Taylor today is amongst the best recognised
     fashion brands in India. It is BHRL’s brand offering in the premium suiting and
     garment segment. Introduced in India in 1999, Reid and Taylor has grown at a fast
     pace and has been able to capture approximately 22% of the market share for
     worsted suiting and fabrics and has been rated amongst the top two brands for
     premium clothing. BHRL retails Reid & Taylor through 324 stores across India as on
     31 December 2009 and plans to increase this number going forward.

     Stephens Brothers:
     Stephens Brothers is the Company’s Super-Premium brand offering. The most recent
     brand added to the BHRL arsenal, Stephens Brothers has grown at a quick pace. As
     on 31 December 2009 BHRL operates 21 EBOs for the brand and has plans on rapidly
     scaling up outlets in line with the positive response received by this brand. Stephens
     Brothers is an English brand that offers a wide range of business attire that is
     designed to perfection both for ladies and gentlemen.

Q3 / 9M FY2010 Result Release                   6
     BHRL retails Belmonte through a pan-India network of 231 EBOs as on 31 December
     2009. Belmonte is a mid-premium suiting and apparel brand offering of SKNL.
     Belmonte offers fabric, suiting and ready to wear clothing and is a brand which is
     ideal for those consumers who are both fashion and value conscious.

     Carmichael House:
     Carmichael House is a SKNL brand that offers premium and mid-premium home
     textiles. BHRL retails Carmichael House products through 205 EBOs across India as
     on 31 December 2009. The brand offers a complete range of high quality home
     textiles including bed linen, towels, duvet covers and upholstery.

     Dunhill is a complete men’s luxury brand specializing in clothes luxury leather
     goods, writing implements, lighters, timepieces, fragrances, watches and clothing.
     The brand was recently introduced in India by BHRL in 2006. As on 31 December
     2009, BHRL operates in 3 Dunhill stores Pan India. BHRL is the exclusive India
     franchisee for the brand.

Q3 / 9M FY2010 Result Release                7

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