Shoppers Stop shares gained 11.7 percent intraday on July 27 after the company turned profitable in the quarter ended June 2022.
The departmental-store company reported a consolidated profit of Rs 22.83 crore in Q1FY23 against a loss of Rs 104.89 crore in the year-ago period and a loss of Rs 15.85 crore in the previous quarter. The second Covid wave impacted earnings during the June quarter of the previous financial year.
Consolidated revenue for the June quarter at Rs 948.44 crore registered a 362 percent growth from the year-ago period, with a 7 percent YoY increase in average transaction value at Rs 4,344 and customer footfalls near pre-Covid level, Shoppers Stop said in a BSE filing. The sequential growth in the topline was 33 percent.
At the operating level, its profit at EBITDA level stood at Rs 162.5 crore against an EBITDA loss of Rs 63.19 crore in Q1FY22. Sequentially, it more than doubled compared to an EBITDA profit of Rs 76.24 crore in Q4FY22. EBITDA is earnings before interest, tax, depreciation and amortisation.
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The company said normalcy has been driving demand. "We expect a strong recovery in demand as economic activity increases, and buoyant wedding season, travel and (vibrant) festive celebrations would lead to higher consumer spends," it said
With the addition of two stores during the June quarter, the total count of departmental stores increased to 90, with 3.4 million square feet of area, while beauty stores count reached to 174, from 171 stores on a sequential basis.
The company is planning to add another 10 departmental stores in the remaining nine months to take the count to 100 by the end of FY23 and beauty stores to 185 by adding 11 stores during the July-March period.
At 13.32 pm, the stock was trading at Rs 584.25, the highest level since September 2018, up 7.96 percent on the NSE.
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