Shoppers Stop Q3 net profit down 10.5% at Rs 17 cr
Department store operator Shoppers Stop's third quarter net profit declined 10.5 percent year-on-year to Rs 17 crore on the back of rising expenses and higher finance costs and tax expenses.
January 29, 2013 / 18:19 IST
Moneycontrol Bureau
Department store operator Shoppers Stop's third quarter standalone net profit declined 10.5 percent year-on-year to Rs 17 crore on the back of rising expenses and higher finance costs and tax expenses.The Mumbai-based retailer's income from operations for the three-month period was up 21 percent to Rs 596 crore."This year, the festive season and marriage season came together in Q3, which gave a boost to overall growth. The steady flow of footfalls has kept the registers ringing and delivered double-digit same-store sales growth of 12.5 percent," said Govind Shrikhande, MD.The company's EBITDA (earnings before interest, taxes, depreciation and amortization) was up 10 percent to Rs 45 crore. EBITDA margin was at 6.6 percent, versus 7.2 percent a year ago.Shoppers Stop's total expenses in Oct-Dec quarter rose 21 percent year-on-year to Rs 570 crore. Finance costs were up to Rs 9 crore from Rs 8 crore, while tax expenses rose to Rs 11 crore from Rs 10 crore. Its other income declined to Rs 3 crore from Rs 5 crore.The company has a total retail area of 33.5 lakh square feet. It opened 1 Shoppers Stop outlet, 1 Crossword store, 1 Clinique store and 3 MAC outlers in the quarter.On a consolidated basis (including food and grocery chain HyperCity, Crossword Bookstore and Timezone Entertainment among others), its net profit slumped 54 percent from a year ago to Rs 4 crore, while retail sales were up 20 percent to Rs 894 crore. Its consolidated net profit was impacted as finance costs rose 61 percent to Rs 14 crore and depreciation rose to Rs 22 crore from Rs 15 crore.Shoppers Stop's consolidated operating profit (EBITDA) was up 26 percent to Rs 39 crore, while margin was at 4.2 percent, up from 3.8 percent a year ago.HyperCity saw sixth consecutive quarter of store level profit, the company said. Its store EBITDA was at Rs 2 crore in the third quarter, compared with Rs 76 lakh a year ago. Shoppers Stop shares closed down 1.7 percent at Rs 424.25 on NSE on Tuesday.Nachiket Kelkar
nachiket.kelkar@network18online.com Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
