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Business News/ Markets / Stock Markets/  Spencer Retail shares rallied 7% after it announces plans to reduce debt
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Spencer Retail shares rallied 7% after it announces plans to reduce debt

The stock of the retail company rallied after the company said, in an exchange filing, that its subsidiary Nature's Basket is anticipated to decrease its debt by approximately ₹100 crore through a combination of loan restructuring and loan repayment in the coming period.

Spencer Retail share price rallied over by 7% on Tuesday |Photo By Indranil BhoumikPremium
Spencer Retail share price rallied over by 7% on Tuesday |Photo By Indranil Bhoumik

Shares of Spencer Retail were up by 7.18% to 79.10 apiece on Tuesday’s trading session. Spencer stock opened at 74.60 on November 28, against previous close at 73.80 per share. At 10:30 am, the stock for Spencer's Retail was trading at 77.40.

The stock of the retail company rallied after the company said, in an exchange filing, that its subsidiary Nature's Basket is anticipated to decrease its debt by approximately 100 crore through a combination of loan restructuring and loan repayment in the coming period.

The company also mentioned that it is contemplating the sale of a specific portion of its minority stake. It is anticipated that Spencer's business will require additional time to achieve a net profit. However, Nature's Basket is projected to attain a positive EBITDA in the current year.

Spencer's Retail and its subsidiary Nature's Basket are affiliated with the RP-Sanjiv Goenka Group. In the second quarter of the fiscal year 2023, the company recorded a net loss of 70.12 crore, compared to 53.78 crore in the corresponding period of the previous fiscal year.

According to a statement from Shashwat Goenka, Group Chairman, the business experienced limited growth in the quarter due to the necessity of making “tough decisions to enhance profitability, including the closure of unprofitable stores in non-strategic locations in South India."

He mentioned that they observed a 65 basis points improvement in gross margins despite a highly competitive operating environment. The company remains dedicated to advancing both top-line revenue and profitability in the latter part of the fiscal period.

The retail company reported net sales at 574.04 crore in September 2023 down 11.59% from Rs. 649.27 crore in September 2022 and quarterly net loss at Rs. 70.12 crore in September 2023 down 30.38% from Rs. 53.78 crore in September 2022.

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Published: 28 Nov 2023, 04:31 PM IST
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