Spencer’s Retail, retail chain of the Rs 20,000-crore RP-Sanjiv Goenka Group, has narrowed down its losses on the back of higher revenue.
Spencer’s Retail, retail chain of the Rs 20,000-crore RP-Sanjiv Goenka Group, has narrowed down its losses on the back of higher revenue. Its net loss came down by 9% year-on-year to Rs 129.39 crore in the last fiscal from Rs 142.28 crore in the previous fiscal. The retailer’s turnover grew over 8% y-o-y at Rs 2,021.27 crore in 2016-17, according to the latest annual report of CESC, the flagship company of the Group. “In 2016-17, it (Spencer’s) registered a same store sales growth of almost 9%, with an average revenue per square foot of Rs 1,576 per month,” Sanjiv Goenka, chairman of the Group, informed in the annual report of CESC. In a major restructuring plan, the Group in May this year announced a four-way split of its flagship company to unlock hidden corporate value. CESC’s board has approved the restructuring plan to demerge all the large businesses into four separate entities. These entities are proposed to be listed on the bourses. Its retail business will largely comprise Spencer’s.
The appointed date of demerger is October 1, subject to approval of the National Company Law Tribunal. “With this, I expect that each of the demerged and listed entities will be able to grow unfettered and that the sum of shareholder values of each of these will be greater than what it is for CESC today,” said Goenka.
During the last financial year, Spencer’s EBITDA loss was contained to Rs 17.10 crore against Rs 52.80 crore in the previous year as it improved operational performances significantly. The retailer has 124 stores, including 39 hypermarkets, across India under its brand name. This fiscal, it plans to roll out about 10 new stores (including five hypermarkets). It has also started online sales. “The focus continues to be on growing the top-line, keeping costs under control and revamping/exiting from non-performing stores,” the annual report said.
During 2016-17, CESC’s revenue from operations rose by more than 6% year-on-year to reach Rs 7,220 crore. Its net profit stood at Rs 863 crore, a growth of 2.1% over the previous year.