Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / Company-results/  Shoppers Stop reports 54% fall in net profit
BackBack

Shoppers Stop reports 54% fall in net profit

Firm posts `4.32 crore profit in quarter to December, down 54% year-on-year, burdened by its money-losing hyper market chain HyperCity

Like-to-like same store growth for the company stood at 12.5%, driven by a 9% price increase and 3.5% volume growth. (Like-to-like same store growth for the company stood at 12.5%, driven by a 9% price increase and 3.5% volume growth.)Premium
Like-to-like same store growth for the company stood at 12.5%, driven by a 9% price increase and 3.5% volume growth.
(Like-to-like same store growth for the company stood at 12.5%, driven by a 9% price increase and 3.5% volume growth.)

Mumbai: Shoppers Stop Ltd reported a 54% drop in its consolidated net profit at 4.32 crore for the quarter ended 31 December, burdened by its money-losing hyper market chain HyperCity. The company posted a profit of 9.33 crore a year ago.

Consolidated revenue for the K. Raheja Corp. group firm, which operates large-format department stores and specialty stores such as Crossword and Mothercare, grew 15% to 959.46 crore, helped by the large number of sales and promotions coupled with the Diwali and Christmas festivals in the reporting quarter.

Parent department store chain Shoppers Stop’s net profit fell 11% to 17.09 crore and revenue grew 20% to 697.11 crore. Bloomberg had estimated a net profit of 17.78 crore and net sales of 638.7 crore for Shoppers Stop that accounts for more than 70% of overall revenue.

Like-to-like same store growth for the company stood at 12.5%, driven by a 9% price increase and 3.5% volume growth.

The company saw its volume grow after almost four-five quarters of it being negligible or close to 1%. Like-to-like sales growth is a measure of growth based on sales in stores that have been open for at least a year.

“The good news is that the quarter saw top-line growth and margin on sales grow after nearly four quarters," said Govind Shrikhande, customer care associate and managing director, Shoppers Stop. He added the company hopes growth in the January-March quarter will be in the 7-8% range following bi-annual sales and promotions in January.

“From here on, we expect gross margins to continue to improve as raw material costs are now comfortable," said Abneesh Roy, associate director—institutional equities—research, Edelweiss Securities Ltd. He said the earnings were in line with estimates.

In the December quarter, the retailer added one new Shoppers Stop store in Bangalore, taking the total to 55. It added two Crossword stores, two stand-alone MAC stores and one Clinque stand-alone store. The company now has more than 4.82 million sq. ft of total retail space in 25 cities.

HyperCity’s loss narrowed marginally to 23.6 crore from 24.5 crore a year ago. Its sales remained flat growing 0.6% to 216 crore in the reporting quarter.

Shrikhande expects HyperCity to turn profitable in another 24 months following corrective measures of reducing store sizes and increasing apparel sales to improve profitability.

The stock price of Shoppers Stop ended Tuesday at 435 on BSE, up 0.59%, while the benchmark Sensex fell 0.56% to close at 19990.90 points.

The results were declared after market hours.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 30 Jan 2013, 12:36 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie