The modern retail industry in India has done well in FY 2010-11 on the
back of economic and political stability, long term policy continuity,
strong underlying economic growth, improved customer sentiment, growing
urbanization & affluence and enormously growing potential demand in the
Indian Market.
For the year 2010-11, your Company has achieved revenues of Rs. 1929
crores, up by 23%, EBIDTA of Rs. 152 crores, up by 34% and Profit after
Tax of Rs. 75 crores, up by 50%, over the previous year. Operating
profit (EBIDTA) has increased from 7.30% in the previous financial year
to 8% of sales in the current financial year.
In the year gone by, your Company saw a Like-to- Like sales growth of
17%, whilst chain level growth in sales was 23%. The Average Selling
Price & Transaction Size have seen growths of 7% and 9% respectively
over the last year. The QIP and Promoters Warrants issue totaling to
Rs. 253 crores was successfully completed by your Company. In view of
this robust performance a 15% dividend has been recommended by the
Board, subject to approval of members.
As part of our continuous endeavour to grow and penetrate the market,
your Company opened 6 new Shoppers Stop stores during the year- one
each at Bengaluru, Bhopal, Delhi, Aurangabad, Siliguri and Durgapur
taking the number of chain of stores to 38 as of March 31, 2011. At a
chain level your Company has added more than 3,00,000 square feet in
the year 2010-11.
In the year, your Company has acquired 32% stake in Hyper City Retail
(India) Limited making it a 51% subsidiary of your Company. Therefore,
the consolidated financials of the year reflect HyperCity financial
numbers. Your Company and its management believes that there is immense
potential in the hypermarket sector of modern retailing, and HyperCity
will be a significant growth engine for your Companys overall
profitability in the years to come. HyperCitys business is currently
in the evolution stage being in its fifth year of operation. In terms
of customers franchise it has been able to earn commendable loyalty
from its customers. Its stores are well appreciated by customers and
even admired in the industry. Awards conferred upon HyperCity across
last many years support this fact.
Your Companys loyalty programme, First Citizen achieved a major
milestone in FY 10-11. The total membership of the programme crossed
the 2 million mark and today is one of the largest loyalty programmes
across sectors. Your Companys First Citizens continue to be a huge
bastion of support and have contributed to 73% of your Companys sales.
As our loyalty programme grows, our Facebook fan club is also growing
very fast. It has now crossed 7 lakhs fans. It is very important for a
retail company like yours to remain in touch with customers at all the
times and social media is an important avenue to remain in constant
touch with customers.
In the year under review, your Company received a number of coveted
awards. These have been featured on page nos. 32 and 33 of this Annual
Report. One of the most significant was Most Respected Retail Company
of the Year from Business World. This award is given to some of the
best companies in various sectors, and in modern retail your Company
has won it. Apart from that other important awards that your Company
has won were - VMRD Retail Design Award, Customer & Brand Loyalty Award
at the Fourth Loyalty Awards programme and most admired Non Store
Fashion and Lifestyle Retail of The Year at IMAGES Fashion Awards
2011. These awards only reiterate the respect and admiration that your
Company commands in the industry and amongst its peers.
Your Company has drawn up extensive plans to launch its next phase of
growth and expansion. With the strong backing of your Companys
customers, shareholders, associates and vendor partners, your Company
and its management is confident that the your Company will go from
strength to strength in the future and continue to be a major and
significant player in the field of Indian modern retail.
CHANDRU L. RAHEJA
Chairman
|