Shoppers Stop earns Rs 7.71 cr profits in ’11

Thursday, 12 May 2011

Retail chain Shoppers Stop may be quite pleased with the way the fiscal year 2010-11 ended as it saw its fourth quarter slide profit wise to Rs 7.71 crores. In the corresponding fourth quarter that ended on March 31, 2010, the conglomerate had reported a profit of Rs 12.57 crores. Govind Shrikhande, Customer Care Associate and Managing Director says they have witnessed a strong and stable environment over the past year with strong growth in like-to-like sales of 17 per cent for the year. They are expanding steadily in metros as well as Tier-II cities, which is witnessing consumption boom and has given them access to growing number of customers.

Shoppers Stop runs specialty stores like Mothercare, Crossword and large format outlets like HyperCity. However, Shoppers Stop results were not comparable on account of termination of the franchisee agreement with Crossword Bookstores (CBL), its wholly-owned subsidiary. Shrikhande says the operations of Crossword have been handed over to CBL with effect from October 1, 2010 at book values therefore, an increase or decrease in inventories includes transfer of inventory to CBL aggregating to Rs 2,325.06 lakh as on October 1, 2010. The total consolidated income for the period under review was Rs 620.94 crores, while the same stood at Rs 388.84 crores in the corresponding period a year ago. For the fiscal ended March 31, 2011, the company’s consolidated net profit stood at Rs 43.19 crores. It had posted a net profit of Rs 35.88 crores in the previous fiscal. During the period, the firm had a total consolidated income of Rs 2,234.90 crores, while it had Rs 1,452.05 crores in the year ago period. On a standalone basis, the company’s net profit for the quarter ended March 31 was Rs 19.92 crores as against Rs 16.43 crores in the same period a year ago.

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