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Shoppers Stop Q4 profit, revenue may grow 12%: Poll

Shoppers Stop's fourth quarter standalone profit after tax is seen rising 12 percent year-on-year to Rs 9.1 crore, according to a CNBC-TV18 poll.

April 30, 2015 / 11:32 IST
     
     
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    Shoppers Stop's fourth quarter standalone profit after tax is seen rising 12 percent year-on-year to Rs 9.1 crore, according to a CNBC-TV18 poll.

    Total income from operations is likely to increase 12.4 percent to Rs 829 crore during January-March quarter compared to Rs 737 crore in the year-ago period.

    Operating profit (EBITDA) may jump 19.8 percent year-on-year to Rs 45.2 crore and margin may expand 40 basis points to 5.5 percent during the quarter, led by higher SSS growth.

    Same store sales growth (SSS growth) is likely to remain subdued owing to overall slowdown and onslaught of online retail. Analysts believe demand environment continued to be soft and improved sentiments are yet to make any meaningful difference.

    They expect around 5 percent SSS growth driven by the sale season (on a high base of 8.4 percent in Q4FY14 and in Q3FY15 SSS growth was 0.8 percent on base of 5.5 percent Y-o-Y).

    End of season sales saw good response though February and March witnessed soft sales, so by and large sales season has been soft in Q4, analysts believe.

    They expect high single digit LTL (Like–To–Like) growth in HyperCity (low base of negative 1 percent Y-o-Y and 6.5 percent in Q3FY15 on a base of 7 percent). Infact, the company may benefit from a turn-around in Hypercity which is expected to remain EBITDA positive this quarter, they added.

    Higher depreciation and finance cost (on new store openings) could marginally impact the profitability. Shoppers Stop closed 1 store during the quarter (in Chennai), taking the total store count to 72.

    Key issues to watch for are comments on same store performance, update on omni-channel strategy, margin outlook and guidance on HyperCITY breakeven.

    first published: Apr 30, 2015 07:17 am

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