Beating GST: Retailers surprise with huge y-o-y growth

Future Retail reported Rs 153 crore net profit for the quarter, 108% year-on-year growth

Though the goods and services tax (GST) muted retailers’ revenue growth in the September quarter, some were able to improve profitability.The implementation of the new tax regime prompted many retailers to prepone end of season sales to June to liquidate inventory. This meant muted revenue growth for September quarter.

Kishore Biyani-promoted Future Retail reported Rs 153 crore net profit for the quarter, 108 per cent year-on-year growth, despite sales recording single-digit growth of 7.5 per cent to Rs 4,506 crore. Profit growing faster than revenue helped the company report 153 basis points improvement in its PBIDTM (profit before interest, depreciation,