Festive season might be decent: Provogue

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Festive season might be decent: Provogue

In an interview to CNBC-TV18, Nikhil Chaturvedi, managing director of Provogue said, the festive season might be decent. “September did worry us a lot. But if I see the first weekend of October, it does give us hope that the season might be decent.”

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Provogue See previous management interviews See what other Experts & Brokerages are saying about Provogue Provogue BSE | NSE 22/02/12 Are Mutual Funds betting on Provogue?

In an interview to CNBC-TV18, Nikhil Chaturvedi, managing director of Provogue said, the festive season might be decent. "September did worry us a lot. But if I see the first weekend of October, it does give us hope that the season might be decent."

He is buying more equity of the company. "I don't think I can get it back at this price again. Hence, I have pledged my shares to buy more shares."

Prozone's listing, he said, should happen in about eight months.

Below is the edited transcript of his interview with CNBC-TV18's Latha Venkatesh and Gautam Broker. Also watch the accompanying video.

Q: How is Diwali shopping, does it look like there is atleast a repeat of last year's consumption levels and footfall levels or do you think there is a slowdown?

A: September did worry us a lot. But if I see the first weekend of October, it does give us hope that the season might be decent. These are very early signs. If we see last weekend's trends, we feel that we are on a reasonably positive wicket.

Q: What would you think you will end the year with in terms of revenues and bottom-line?

A: I wouldn't like to predict in the current scenario. But I can say one thing that the first quarter was quite fine. September showed a sharp dip. But the way October has started, if it continues this way, we should be on track.

Q: Last quarter your same store sales were pretty flat. Also, on the expansion front, you added just about four stores. How is the scenario looking like now? What are you expansion plans and how do you expect same store sales to pan out?

A: That was the time when the market was slightly down. We had added only four stores. You normally don't want to open any store in the month of June-August because they don't give you the high revenue drivers and they don't establish the location. So, all the new stores, which we had planned, are now in place and they will be rolling in the month of October. So, we have added almost 12 new stores in last quarter.

Q: There was speculation that you are probably going to demerge your real estate assets to Prozone. Can you give us an idea of what kind of business restructuring you are thinking about?

A: We have already submitted our entire scheme to the stock exchange. We are waiting for their approval and then it will be submitted to the courts. We have already gone ahead with our proposal for demerger and its 1:1. All the Provogue shareholders would gain in a very large way.

We as management have already made announcements. We have picked up almost 2.5% of our equity already and we continue to buy.

Q: By when do you expect the listing to happen, the Prozone listing?

A: It's a process. I would say it should be about eight months. A month has already gone, so another seven-eight months would be the appropriate time.