Shoppers Stop (SHOPERSTOP) Q4 03/04 earnings summary

Executive summary

• FY04 revenue rose 34% YoY to Rs 4,044,259 thousand; net profit increased to Rs 120,214 thousand from Rs 106,270 thousand.

• Two stores opened, taking the chain to 14 stores across nine cities; like-for-like sales grew 12%.

• Expansion, merchandise development and customer loyalty remained central priorities, with four new stores planned and retail space expected to reach 796,132 sq. ft.

Financial highlights

• Gross retail sales were Rs 3,953,259 thousand, up 34% YoY; total revenue was Rs 4,044,259 thousand versus Rs 3,030,247 thousand.

• PBT rose 22.4% to Rs 130,295 thousand; PAT was Rs 120,214 thousand versus Rs 106,270 thousand.

• EBITDA was Rs 244,898 thousand in the financial highlights, versus Rs 196,013 thousand in FY03; the operating margin was 6.1% versus 6.5%.

• Basic EPS was Rs 2.22 and diluted EPS Rs 2.21 on a Rs 5 face-value basis; no equity dividend was recommended to conserve cash for expansion.

Outlook and guidance

• Four stores were planned at Salt Lake, Kolkata; Mantri, Bangalore; Juhu, Mumbai; and Shipra, New Delhi, adding 167,584 sq. ft. of retail space.

• Planned FY05 investment of Rs 25 million in Crossword Bookstores was approved through subscription to its rights issue.

• Store renovations and expansions were planned in Mumbai, Bangalore and Delhi, alongside continued chain growth and operational efficiency efforts.