Discount retailer Vishal Retail Ltd reported a third quarter net profit of Rs15 crore on better margins and increased sales. There was no year-ago quarterly profit comparison as the firm, which became public in June, did not not provide last year’s figures.
The company, which opened 27 new stores in the October-December quarter, said revenue has grown in its existing stores.
“We sold more garments and others things during Diwali,” said Vishal Retail’s chairman and managing director Ram Chandra Agarwal. “This was a good season.”
Agarwal said due to the holiday season, revenues were Rs304 crore. Margins for the quarter were up at 5.12%, compared with about 3.8% last quarter.
Last year, Vishal Retail raised Rs110 crore in its initial public offering (IPO) that was oversubscribed almost 70 times. Vishal said it has so far invested about Rs84 crore of the money raised through the IPO in new store openings.
The firm reported that it paid interests of Rs12 crore in October through December. Staff cost was slightly more than Rs19 crore.
“Salary structure in retail has been on the upswing,” Agarwal said. “Also, we hired new people as we would like to make a pool.” The company has 82 supermarkets and specialty stores in more than 50 cities.