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The Mumbai-headquartered entity said retail turnover for the quarter rose 17.6 per cent to Rs 2,811.92 crore backed by new store openings. The company added 0.68 million square feet of retail space during the quarter ending March 2011, taking the total operational retail space to 14.85 million square feet.
Sangeeta Tripathy, research analyst at Sharekhan said, “Pantaloons result is pretty weak. There is four per cent drop in net profit on sequential basis due to drop in operating margin and increase in interest cost. But the stock is attractively valued.”
However, on a consolidated basis the company reported a net profit after minority interest of just Rs 4.09 crore almost an eighth of its core retail net profit for the January-March 2011 quarter, on account of higher interest costs.
The core retail business includes all retail businesses of the company and its wholly owned subsidiaries in value, lifestyle and home retailing segments.
Pantaloon’s same store sales growth in lifestyle retail stood at 10.2 per cent, 10.3 per cent in value retailing and 9.1 per cent in the home business. This denotes the growth in sales from stores already in operation.
In its investor update, the company said an all time high non-food inflation especially in fashion category is a boon for modern retail, enabling higher realizations per unit. But it warned that high input costs, especially of cotton and other fabrics could compress margins.
The retailer believes that an upward price revision, especially in its fashion business, would result in its average selling prices increasing by about 16 per cent in the current quarter, and hence boost its profitability.
meghnamaiti@mydigitalfc.com
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