February 03, 2017 / 15:17 IST
Shoppers Stop’s (SSL) Q3FY17 revenue and EBITDA came in line with our estimates, but PAT declined 15.3% YoY owing to higher depreciation. Key positives were: (i) LTL department store volume growth of 4.2% YoY was commendable on a high base of 15.9%, aided by festive season and double-digit growth seen in December; and (ii) 9.5% YoY LTL sales in Hypercity came on a soft base of 0.8% YoY decline, aided by food division.
OutlookKey negatives were: (i) 20.4%/38.8% YoY increase in lease charges/depreciation as 3 SSL and 1 Hypercity stores were added; and (ii) 79bps and 60bps dip in gross and EBITDA margins, respectively. We are enthused by SSL’s investments in omni-channels, and recovery in consumer spending. Maintain ‘BUY’.
Story continues below Advertisement
For all recommendations, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
Read More
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!
