Shoppers Stop's first quarter net profit is expected to increase four-and-half times to Rs 3.4 crore compared to Rs 75 lakh in the year-ago period on strong operational performance and same-store-sales growth (SSSG). Revenue is seen rising 16.4 percent to Rs 710 crore from Rs 610 crore during the same period, according to average of estimates of analysts polled by CNBC-TV18.
Private labels, strong marriage season sales and a turnaround in Hypercity are expected to drive revenues growth. New brand additions may drive SSG by 8-10 percent against 3.7 percent in the year-ago period. SSSG may be led by 20 percent growth in five major stores renovated last year.
Company may see waning effect of competitive intensity from e-commerce players. Analysts expect strong 11 percent like-to-like growth on a low base, buoyed by continued improvement in Hypercity’s metrics.
Positive surprise from SSSG is likely to lead to higher margin during the quarter and even improved sales mix may aide margin further.
Operating profit (earnings before interest, tax, depreciation and amortisation) may increase 24 percent year-on-year to Rs 38.5 crore and margin may expand 30 basis points to 5.4 percent in the quarter gone by.
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