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Friday, 11 November 2011 |
Debt ridden Pantaloon Retail India has registered a second
consecutive quarterly drop in net profit and a sluggish top line growth further creating doubts over the sustainability of its future. It posted a 36.3 per cent decline in its consolidated net profit for the first quarter ended September 30, 2011 to Rs 15.1 crores from a year ago. It attributes this decline to higher expenses, including on raw materials. PRIL’s consolidated net sales for the first quarter of the current financial year increased 15.6 per cent to Rs 3,180.3 crores as against Rs 2,750.8 crores in the year-ago period. During the period under review, raw material cost increased to Rs 21.28 crores, up from Rs 10.95 crores in the period last fiscal. “The company has seen muted consumer sentiments impact sales growth across all categories. In addition, political and social unrest in Andhra Pradesh had a substantial impact on sales as stores in Hyderabad had to be closed on 12 different days during the quarter,” said a company investor update. Even the festive season could not help much to revive the losses incurred by Pantaloon with consumers making cautious purchase decisions during the period. The piled up inventories are already an issue, company has been facing for quite some time now. A subdued 13 per cent growth in top line was seen during the festive season which according to industry experts is not a positive sign.
The company also incurred "other expenditure" of Rs 591.41 crores during the quarter, which was Rs 497.42 crores in the same quarter last fiscal, PRIL added. In a separate filing to the BSE, PRIL said its board of directors has approved the re-designation of Rakesh Biyani as Joint Managing Director of the company with immediate effect. |
