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Pantaloon Retail
Demand Trends – Discretionary demand has moderated across categories in recent
months. SSS growth slowed down to 3.6%, 6.5%, and 1.3% for value, lifestyle, and
home retailing respectively in Sep’11 quarter. Management stated that there has been
substantial volatility and inconsistency in demand trends across regions. Mgmt noted
that while demand for Apparels continues to remain weak, Food and Home segments
are doing relatively well.
Balance Sheet Concerns - PRIL currently has cUS$1Bn in debt. PRIL is willing to
divest its stake in NBFC venture and insurance business to pare down debt. They are
also working on simplifying the business and consolidating some of the other support
businesses. With cabinet approval for FDI in multi-brand retail Pantaloon would be
open to partner with a foreign retailer and it would help ease its funding constraints.
Expansion plans - Despite rising debt and consumer demand slowdown,
management remains confident to continue with their expansion plans. Pantaloon
will be adding c2.2Mn sqft space this year. They also highlighted that given there is
no real estate development going on currently due to slowdown, we may see a
shortage of real estate for retail business three years from now.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Pantaloon Retail
Demand Trends – Discretionary demand has moderated across categories in recent
months. SSS growth slowed down to 3.6%, 6.5%, and 1.3% for value, lifestyle, and
home retailing respectively in Sep’11 quarter. Management stated that there has been
substantial volatility and inconsistency in demand trends across regions. Mgmt noted
that while demand for Apparels continues to remain weak, Food and Home segments
are doing relatively well.
Balance Sheet Concerns - PRIL currently has cUS$1Bn in debt. PRIL is willing to
divest its stake in NBFC venture and insurance business to pare down debt. They are
also working on simplifying the business and consolidating some of the other support
businesses. With cabinet approval for FDI in multi-brand retail Pantaloon would be
open to partner with a foreign retailer and it would help ease its funding constraints.
Expansion plans - Despite rising debt and consumer demand slowdown,
management remains confident to continue with their expansion plans. Pantaloon
will be adding c2.2Mn sqft space this year. They also highlighted that given there is
no real estate development going on currently due to slowdown, we may see a
shortage of real estate for retail business three years from now.
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