Higher operating expenses, finance charges and depreciation led to 54% drop in the third quarter profit after tax of Raheja-owned retailer Shoppers Stop. The company posted a profit after tax of Rs 4.32 crore in Q3 of FY 2013 as compared to Rs 9.33 crore in Q3 of FY 2012.
Its operating expenses went up 19% while its finance charges went up 61% during the quarter
The company's net sales went up 15% in Q3 at Rs 893.80 crore as compared to Rs 778.16 crore the company posted in the corresponding quarter of previous financial year. Hypercity's losses dropped to Rs Rs 23.57 crore in Q3 of FY 2013 as compared to Rs 24.51 crore it posted in the Q3 of FY 2012.
Higher operating expenses, finance and depreciation charges also impacted the company's standalone profits which dropped 11% The company posted a standlaone net profit of Rs 17.09 crore in Q3 of FY 2013 as compared to Rs 19.29 crore in Q3 of FY 2012. Its net sales went up 21% at Rs 656.99 crore in Q3 of FY 2013 as compared to Rs 543.34 crore in Q3 of FY 2012.
The department stores saw a like to like growth of 12.5% which is one of the highest in the last many quarters, said company managing director Govind Shrikhande,
"During the first half of the year, our PAT and EBITDA levels were down 40 to 50%. But during the quarter EBITDA went up 10% and PAT dropped 11%.," Shrikhande said. "We did a lot of activation which led to higher growth," he said.
