Pantaloon Retail (PRIL), on a standalone basis, reported a 20% growth in net sales, at Rs1663 crore for 4QFY2009 on a y-o-y basis. Cost-rationalization measures, coupled with negotiations for lower rentals during the quarter enabled the company to post a growth of 29.8% in its EBITDA to Rs183.2crore; consequently, the EBITDA margin also improved by 80bps, to 11% in 4QFY2009.
Higher interest and depreciation continued to impact the net profit, which posted an increase of 12% y-o-y to Rs36.5 crore during the quarter.
During FY2009, PRIL reported a top-line growth of 25.6% to Rs6341.7 crore, on a standalone basis, which is in line with our estimates. The EBITDA margin showed an improvement of around 140bps to 10.5%, thereby enabling PRIL to post a 45.1% y-o-y growth in EBITDA to Rs668.3 crore.
Higher interest and depreciation continued to impact the net profit, which posted an increase of 11.7% yoy to Rs140.6 crore. PRIL posted a consolidated sales growth of 31% y-o-y to Rs7669cr in FY2009. The company’s EBITDA reported a rise of around 71% to Rs513.2cr, while on the net profit front PRIL reported a decline of 54%, mainly due to business-related losses from the insurance and telecom businesses. We continue to maintain our NEUTRAL view on the stock.