IndiaRetailBiz

Shoppers’ Stop, the country’s second largest listed retailer, owned by construction giant K. Raheja group, which beside other formats operates the flagship retail chain of 22  lifestyle, department format, large format stores across 12 cities in the country, has reported mixed performance for the second quarter ending 30th September 2007 (FY 2007-08).

While, it recorded 38% growth in turnover from Rs. 195.6 cr. to 275.3 cr. during the quarter, its net profit fell down sharply from Rs. 7.3 cr. to Rs. 0.42 cr. during the same period compared to previous year.

The steep decline in net profit was attributed by the company to higher operating expenses (due to opening of new stores), higher rentals and tripling of expenses on energy. The new method of calculating depreciation adopted this year also affected the margins.

“We focus on the EBITDA which is at 5.8, with upturned margins by 100 (1%) basis points  [31.7% vs. 30.7% last year]. However, our operating expenses are down 200 basis points (2%), but it is not a point to worry about,” said Govind Srikhande, Customer Care Associate & Chief Executive Officer, of the company, while talking about quarterly results.