Shoppers Stop (SHOPERSTOP) Q4 04/05 earnings summary

Executive summary

• FY05 revenue reached Rs 5,111.59 million, up 26% YoY; PAT rose 58% to Rs 190.32 million.

• Store count rose from 14 to 16 across nine cities; customer entry increased 19.6% to 14.6 million.

• IPO preparations were underway to support expansion; management targeted 39 department stores by FY08.

Financial highlights

• Gross retail sales were Rs 5,032.86 million vs Rs 3,953.26 million; total revenue was Rs 5,111.59 million vs Rs 4,044.26 million.

• EBITDA increased to Rs 336 million from Rs 245 million; PBT was Rs 207.37 million vs Rs 130.30 million, and PAT was Rs 190.32 million vs Rs 120.21 million.

• Cash profit after tax was Rs 263.09 million, up 42% YoY; operating cash flow was Rs 185.33 million, while fixed-asset investment used Rs 418.05 million.

• Consolidated revenue was Rs 4,644.57 million and net profit was Rs 189.35 million, vs Rs 3,549.63 million and Rs 117.76 million in FY04.

Outlook and guidance

• Planned 23 new stores over three years, targeting 39 stores and 2,505,747 sq. ft. of retail space by FY08.

• Six openings were planned by Mar-06, four by Mar-07 and 13 by Mar-08; locations included metros and tier-two cities.

• Management expected FY06 to be better, citing a profitable growth trajectory and opportunities in Indian department-store retailing.