Mumbai: Shoppers Stop Ltd (SSL) reported a 17% increase in net profit for the quarter ended 30 June, aided by robust growth in new store launches.
Net profit grew to Rs 11.7 crore from Rs 10 crore in the year earlier. Revenue rose 15% to Rs 439.2 crore from Rs 382.4 crore.
Shoppers Stop runs large-format department stores, home stores, specialty stores such as Crossword, Mothercare, MAC, and hypermarkets.
The numbers are not comparable with last year because Hypercity Retail (India) Ltd became a subsidiary effective 30 June, 2010, and on account of the spin-off of Crossword Bookstores Ltd into a separate company in October.
The results were below analysts’ expectations at Motilal Oswal Securities Limited and Prabhudas Lilladher Pvt. Ltd. “Shoppers Stop should witness 60% revenue growth driven by space expansion and strong growth in Hypercity (Hypercity numbers were not included in base quarter),” Prabhudas Lilladher had said in its 11 June earnings preview.
Three new Shoppers Stop stores were added in the quarter at Chennai, Indore and Pune. One Homestop store was launched in Lucknow and three new MAC stores were opened in the Delhi and Ludhiana regions. Hypercity added one store in Bangalore. In addition to this, the group launched three Crossword stores, taking the total to 76.
“Shoppers Stop Limited continues its steady growth trajectory quarter on quarter. Our momentum in adding stores is gaining traction and our robust expansion plan is on track,” said Govind Shrikhande, customer care associate and managing director, Shoppers Stop.
The stock fell 4.38% to close at 445.55 on Tuesday on the Bombay Stock Exchange, while the benchmark Sensex dropped 1.85% to close at 18,521.47.