Mumbai: Shares of Pantaloon Retail India Ltd, India’s largest listed retailer, fell 2.75% following disappointing numbers. While the Bombay Stock Exchange’s benchmark, Sensex, rose 229.17 points, Pantaloon shares closed at Rs525.40, down Rs14.85 from the previous day’s close.
The firm’s net sales rose 73.18% to Rs3,236.73 crore for the year ended 30 June, from Rs1,869.69 in the previous year. Net profit was up 87.03% at Rs119.99 crore, from Rs64.15 crore. But, of the Rs181 crore profit before tax, Rs88.87 crore came from sales on an investment. “The results were below expectations because the growth in profits came from the sale of assets,” Hemant Patel, retail analyst at Enam Securities Pvt. Ltd.
Pantaloon’s interest costs rose 143.09%, to Rs897.55 crore from Rs369.22 crore, as it rolled out new stores and retail formats. “They are in an expansion phase,” said Girish Solanki, retail analyst at Angel Broking. “That is why we are seeing margins being tremendously under pressure although the top line is growing.