Retail chain Shoppers Stop Ltd posted a net profit of Rs 22.79 crore for April-June quarter against the net loss of Rs 118 crore for the same period last year on the back of first disruption-free quarter and improved consumer sentiments.
Revenue for operations for the company rose 368% year-on-year to Rs 942 crore during the quarter on low base and believes that the growth will continue in the coming quarters due to easing of Covid-related restrictions, it said in a regulatory filing.
“This, coupled with the upcoming festive season, is likely to release a significant pent-up demand and further aid the Company’s revenue growth,” said Venu Nair, MD, CEO at Shoppers Stop.
The company’s operating margin rose 350 basis points during the quarter to 42.2%, according to the company’s investor presentation.
Shoppers Stop standalone business contributes around 75% of the company’s consolidated business. It posted consolidated net profit Rs 22.8 crore against net loss of Rs 105 crore last year.
Consolidated sales were at Rs 948 crore against Rs 205 crore last year, up over four-fold due to lower base.
The company said that the average transaction value during the quarter was up 7% y-o-y while the average selling price was up 15% y-o-y.
Nair said that footfalls have increased and the company expects good demand in tier-2 cities and beyond, with the rise in smartphone penetration, and the growing adoption of digital payment systems.
Going ahead, Nair said that that the company expects FY23 to be one of the strongest year for the retail industry. “Returning mobility and higher ticket purchases led by the pent-up demand will likely drive retail spending over the coming months,” he added.
During April-June, the company opened six new stores. Its average transaction value was up 7% year-on-year while average selling price was up 15% y-o-y.
The company’s e-commerce sales were up 29% y-o-y during the quarter.