IndiaRetailBiz

Vishal Retail, Delhi-based megastore (mini-hypermarket) format value retail chain, which after highly successful IPO in June 2007 was riding on growth trajectory in 2007-08, had a difficult period of performance this year.

The retailer, according to financial results, has incurred a consolidated net loss of Rs 94.49 crore for the 2008-09 financial year ending 31st March, 2009. The loss is significant in the backdrop of net profit of Rs 40.64 crore during the financial 2007-08. Against income of Rs Rs 952.97 crore in 2007-08, the income in 2008-09 at Rs 1323.23 crore was higher by 38.85 per cent.

The last quarter (Q4) performance (2008-09) was quite bad for the company as it incurred a net loss of Rs 114.72 crore between January- March 2008, compared to standalone net profit of Rs 10.40 crore in the same quarter last year (2007-08).

Standalone total income during Q4 2009 was lower at Rs 232.89 crore compared total income of Rs 318.41 crore during Q4 2008.

Post economic slowdown, Vishal has been facing pressure of falling footfalls (same store), declining average purchase per customer, and mounting interest cost, particularly during later part of the financial year under review.

The retailer was busy restructuring debt of around Rs 730 crore during June, 2009. The retailer was interestingly carrying a debt of Rs 532 crore in 2008.

Vishal Retail, which was a darling of equity investors only a year or so ago, in the last one year saw its share price plummeting from a high of Rs 455 to Rs 25.20. The price, though has now recovered to Rs 59.40 on stock exchanges yesterday.