Himadri Buch Moneycontrol News
Future Retail, the retail arm of Kishore Biyani-led Future Group, is expecting double-digit sales growth to continue in July-Sep of this fiscal year as well, said CP Toshniwal, Executive Director, Future Lifestyle Fashions and Chief Financial Officer of Future Retail.
"Overall growth will be strong. September quarter will continue to be double digit same store sales growth for us," he said.
He was speaking on the sidelines of Retailers Association of India-CFO Summit in Mumbai.
Future Retail has reported an over two-fold jump in its standalone net profit at Rs 148 crore for the quarter ended June 2017 (Q1FY18) on account of higher income. It posted a net profit of Rs 71 crore during the April-June quarter of FY17.
The company's net sales grew 18 percent year-on-year to Rs 4,705 crore led by overall SSSG (same store sales growth) of 11.8 percent, with Big Bazaar posting 15.9 percent SSSG in the first quarter of FY18.
Toshniwal also said the company will continue to look at double digit store sales growth, adding 15-16 stores in terms of Big Bazaar.
Supermarket chain Big Bazaar is the second largest format in the company after small store chain EasyDay, which Biyani acquired from the Bharti group in 2016.
Currently, there are 253 Big Bazaars in 127 cities across 26 states and it has opened stores in three new cities—Guntur (Andhra Pradesh), Gorakhpur (Uttar Pradesh) and Kangra (Himachal Pradesh).
When asked on transition post GST, he said in the initial few weeks of July the company saw a disruption of supply. However, things are back to normal.
He believes, cost-savings owing to GST transition will be 100 basis points on an annual basis.
The company has been facing challenges in mass data and systematic level changes in terms of SAP.
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