Future Retail Q1 profit more than doubles to Rs147.85 crore
Mumbai: Future Retail Ltd, the retail arm of Kishore Biyani-led Future Group, reported its net profit more than doubled to Rs147.85 crore for the quarter ended June 2017.
The company, which includes six retail formats including Big Bazaar, reported an 18.22% year-on-year increase in revenue from operations to Rs4,704.93 crore.
While Future Retail reported flat gross margins at 25%, its Ebit (earnings before interest and tax) margins rose marginally by 40 basis points to 4.3%. A basis point is one hundredth of a percentage.
The company reported an overall same store sales growth rate of 11.8% for the quarter, while it was higher for Big Bazaar at 15.9%. Same store sales growth refers to the increase in sales from stores that have been in operation for the same period of time, excluding the positive effect of sales from new stores opened.
Supermarket chain Big Bazaar is the second largest format in the company after small store chain EasyDay, which Biyani acquired from the Bharti group in 2016. The company reported it has 253 Big Bazaars in 127 cities and 26 states and has opened stores in three new cities—Guntur (Andhra Pradesh), Gorakhpur (Uttar Pradesh) and Kangra (Himachal Pradesh)—the company said in an investor presentation.
Shares of Future Retail were trading at Rs447 at 3:10pm, 3.78% higher from previous close, while the benchmark BSE Sensex was at 32,005.95 points, down 0.83%.