Shoppers Stop (SHOPERSTOP) Q4 09/10 earnings summary

Executive summary

• FY10 turnaround: standalone net profit Rs 5,023.05 lacs versus a Rs 6,371.80 lacs loss in FY09; revenue rose 11.07% to Rs 141,181.25 lacs.

• Gross retail turnover reached Rs 1,568 crore, up 12%; like-for-like sales grew 3.7%, while chain-level sales grew 10% in the financial highlights.

• Recovery reflected improved customer sentiment, gross-margin gains, cost rationalisation and lower depreciation following a useful-life review.

Financial highlights

• Standalone retail turnover was Rs 156,836.75 lacs; after VAT, consignment cost and other income, total income was Rs 141,181.25 lacs.

• Standalone EBITDA was Rs 11,726 lacs versus Rs 4,924 lacs; PBT before exceptional items was Rs 6,379.31 lacs versus a Rs 3,949.30 lacs loss.

• Standalone PAT was Rs 5,023.05 lacs; consolidated revenue was Rs 145,843 lacs and consolidated net profit Rs 3,588.01 lacs, versus a Rs 6,365.01 lacs loss.

• Operating and administrative expenses fell to Rs 31,700.27 lacs from Rs 32,915.80 lacs; interest and finance charges declined to Rs 2,244.35 lacs from Rs 2,560.30 lacs.

Outlook and guidance

• Expansion plans target a new phase over the next 30 months, with more department stores, stronger city penetration and increased share in existing markets.

• Management expected to pursue pan-India growth and take advantage of opportunities in modern retail; no numeric earnings guidance was stated.

• The online portal served customers in more than 500 cities and towns, with products across 70-plus categories; internet retailing was viewed as a potential growth channel.