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I n l i n e w i t h e x p e c t a t i o n s …
Pantaloon Retail (India) Ltd’s (PRIL) Q3FY11 numbers were in line with our
and street estimates. PRIL’s revenues stood at | 2,811.9 crore (up 17.6%
YoY) in line with our estimates of | 2,855.9 crore. Revenue per sq. ft.
declined sequentially to | 1,894 per sq. ft. from | 1,947 per sq. ft. in
Q2FY11 on account of the space added in Q3FY11. PRIL added 0.68 mn
sq. ft. in Q3FY11 taking the total retail space to 14.85 mn sq. ft. Same
store sales growth (SSSG) moderated in Q3FY11 from the earlier higher
double digit numbers. However, operating margin improved sequentially
to 8.8% from 8.6% in Q2FY11 partly due to increased stock in trade. PAT
grew 34.8% YoY to | 50.5 crore.
ƒ Space addition and double digit SSSG aid topline growth
PRIL’s topline increased 17.6% YoY to | 2,811.9 crore on the back of
0.68 mn sq. ft. of space added during the quarter and a moderate
yet healthy double digit SSSG. The value, lifestyle and home
segment grew at 10.3%, 10.2% and 9.1%, respectively. Further the
‘Sabse Saste 5 Din Sale’ and ‘The Great Exchange Offer’ conducted
during the quarter aided topline growth.
ƒ Space addition picks up pace
During the quarter PRIL added one store each of Pantaloon, Central,
E-zone, HomeTown and also added 5 Big Bazaars, 2 Food Bazaars,
28 KB’s Fairprice stores and 29 other format stores thereby adding
0.68 mn sq. ft. taking the total operational retail space to 14.85 mn
sq. ft. The management has guided to add another 0.82 mn sq. ft
space in Q4FY11 which will take the total retail space to 15.67 mn.
sq. ft as on June 2011.
V i e w
While PRIL has been able to maintain its topline growth trajectory over
the last 9 quarters, inventory pile up and moderating SSSG need to be
monitored closely. Increasing inventory will also lead to higher working
capital requirement which is not a positive in a rising interest rate
scenario.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
I n l i n e w i t h e x p e c t a t i o n s …
Pantaloon Retail (India) Ltd’s (PRIL) Q3FY11 numbers were in line with our
and street estimates. PRIL’s revenues stood at | 2,811.9 crore (up 17.6%
YoY) in line with our estimates of | 2,855.9 crore. Revenue per sq. ft.
declined sequentially to | 1,894 per sq. ft. from | 1,947 per sq. ft. in
Q2FY11 on account of the space added in Q3FY11. PRIL added 0.68 mn
sq. ft. in Q3FY11 taking the total retail space to 14.85 mn sq. ft. Same
store sales growth (SSSG) moderated in Q3FY11 from the earlier higher
double digit numbers. However, operating margin improved sequentially
to 8.8% from 8.6% in Q2FY11 partly due to increased stock in trade. PAT
grew 34.8% YoY to | 50.5 crore.
ƒ Space addition and double digit SSSG aid topline growth
PRIL’s topline increased 17.6% YoY to | 2,811.9 crore on the back of
0.68 mn sq. ft. of space added during the quarter and a moderate
yet healthy double digit SSSG. The value, lifestyle and home
segment grew at 10.3%, 10.2% and 9.1%, respectively. Further the
‘Sabse Saste 5 Din Sale’ and ‘The Great Exchange Offer’ conducted
during the quarter aided topline growth.
ƒ Space addition picks up pace
During the quarter PRIL added one store each of Pantaloon, Central,
E-zone, HomeTown and also added 5 Big Bazaars, 2 Food Bazaars,
28 KB’s Fairprice stores and 29 other format stores thereby adding
0.68 mn sq. ft. taking the total operational retail space to 14.85 mn
sq. ft. The management has guided to add another 0.82 mn sq. ft
space in Q4FY11 which will take the total retail space to 15.67 mn.
sq. ft as on June 2011.
V i e w
While PRIL has been able to maintain its topline growth trajectory over
the last 9 quarters, inventory pile up and moderating SSSG need to be
monitored closely. Increasing inventory will also lead to higher working
capital requirement which is not a positive in a rising interest rate
scenario.
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