Shoppers Stop (SHOPERSTOP) Q4 10/11 earnings summary

Executive summary

• FY11 gross retail turnover reached ₹1,929 crore, up 23%; EBITDA rose 34% to ₹152 crore and standalone profit after tax increased 50% to ₹75 crore.

• Like-for-like sales grew 17%; EBITDA margin improved to 8.0% from 7.3%, supported by cost rationalisation and stronger sales.

Financial highlights

• Standalone revenue was ₹171,919.71 lacs, up 21.77% YoY; standalone net profit was ₹7,517.58 lacs versus ₹5,023.05 lacs.

• Gross retail turnover was ₹192,900.30 lacs, up from ₹156,836.75 lacs; gross margin value reached ₹599 crore, up 21%.

• Consolidated revenue was ₹223,735.82 lacs versus ₹145,843.00 lacs; reported consolidated net profit was ₹4,319.57 lacs, including a ₹2,498.67 lacs minority share of loss.

Outlook and guidance

• Expansion plans targeted a new growth phase over the next 36 months, including more department stores, deeper penetration in existing cities and entry into tier II cities.

• Management viewed HyperCity as a potential growth engine as the hypermarket format developed; expansion across HomeStop, specialty retail, airport stores and e-commerce was to continue.