The Indian fashion conglomerate reported sales growth of 20 percent to 3589 crore rupees ($435 million) for the quarter ended December 30, largely driven by a 33 percent improvement in e-commerce, but a 94 percent decline in profits.

Net profits for the quarter fell from 197 crore rupees a year ago to just 11 crore rupees due to what the company describes as an “about 2.3-fold increase in marketing costs and strategic investments in new ventures.”

During the quarter, the group signed a strategic partnership with Galeries Lafayette to open branches of the French upmarket department store in India, with two flagship locations in Mumbai and Delhi scheduled to open by 2024 and 2025 respectively.

Aditya Birla Fashion and Retail (ABFRL)’s digital-first ‘House of Brands’ venture TMRW has also announced a $35.6 million investment in eight lifestyle brands: Berrylush, Bewakoof, Juneberry, Natilene, Nauti Nati, Nobero, Urbano, and Veirdo. The venture plans to acquire and incubate more than 30 brands over the next three years. The company launched its largest nationwide television and digital advertising campaign yet for its innerwear and athleisure division and its store network grew from 3,593 in September to 3,848 stores by the end of last year.

ABFRL, a subsidiary of Aditya Birla Group, secured a $282.8 million investment from Singapore’s sovereign wealth fund GIC last year and a long-term licensing agreement with Reebok. In recent years ABFRL has invested in prominent Indian fashion brands such as Sabyasachi, Shantanu and Nikhil, Tarun Tahiliani, the House of Masaba and traditional Indian fashion retailer Jaypore.

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