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Pantaloon Retail:: Well balanced growth, debt woes remain…
Pantaloon Retail (India) Ltd’s (PRIL) core retail business witnessed a
31.2% YoY increase in revenue to | 2,758.6 crore in Q2FY11.
Sequentially, the EBITDA margin improved 40 bps to reach 8.6%. Higher
interest expenses and a lower operating margin (as compared to last
year) led to a subdued PAT growth of 5.5% YoY. During the quarter, the
company added 0.8 million sq ft taking the total operational retail space
to 14.17 mn sq ft. The company has maintained double digit same-store
sales growth (SSSG) across its formats for the third quarter in a row.
Same-store sales growth aids topline growth
A delayed festive season enabled PRIL to record a healthy SSSG in
Q2FY11. The value retailing, lifestyle retailing and the home
segment grew at 11.5%, 20.9% and 18.3%, respectively. The
revenue per sq ft has increased from | 1,754 per sq ft in Q2FY10 and
| 1,931 in Q1FY11 to | 1,947 per sq ft in Q2FY11.
Space addition plans on track
During the quarter, PRIL opened five Pantaloons, two Central, one Ezone,
seven Big Bazaars and 36 KB’s Fairprice stores. In all, the
company added 0.8 mn sq ft during the quarter taking the total
operational space to 14.17 mn sq ft.
Restructuring of business verticals continues
PRIL has received board approval to transfer the E-zone (consumer
durables) business to a wholly owned subsidiary. The management
has indicated plans to slow down the pace of scaling up this
business owing to low margins, which is putting pressure on the
operating margins of the company.
View
While PRIL has been able to maintain a healthy SSSG, the burgeoning
debt continues to remain a cause for concern (more so in a rising interest
rate scenario). We have downgraded our rating from BUY to ADD.
The company added 0.8 mn sq ft of area during Q2FY11. During the
quarter, PRIL opened five Pantaloons, two Central, one E-zone, seven Big
Bazaars and thirty six KB’s Fairprice stores.
Strong SSSG across segments aided an 11% YoY increase in revenue per
sq ft from | 1,754 in Q2FY11 to | 1,947 in Q2FY11.
View
While PRIL has been able to maintain a healthy SSSG, the burgeoning
debt continues to remain a cause for concern (more so in a rising interest
rate scenario). We have downgraded our rating on the stock from BUY to
ADD.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Pantaloon Retail:: Well balanced growth, debt woes remain…
Pantaloon Retail (India) Ltd’s (PRIL) core retail business witnessed a
31.2% YoY increase in revenue to | 2,758.6 crore in Q2FY11.
Sequentially, the EBITDA margin improved 40 bps to reach 8.6%. Higher
interest expenses and a lower operating margin (as compared to last
year) led to a subdued PAT growth of 5.5% YoY. During the quarter, the
company added 0.8 million sq ft taking the total operational retail space
to 14.17 mn sq ft. The company has maintained double digit same-store
sales growth (SSSG) across its formats for the third quarter in a row.
Same-store sales growth aids topline growth
A delayed festive season enabled PRIL to record a healthy SSSG in
Q2FY11. The value retailing, lifestyle retailing and the home
segment grew at 11.5%, 20.9% and 18.3%, respectively. The
revenue per sq ft has increased from | 1,754 per sq ft in Q2FY10 and
| 1,931 in Q1FY11 to | 1,947 per sq ft in Q2FY11.
Space addition plans on track
During the quarter, PRIL opened five Pantaloons, two Central, one Ezone,
seven Big Bazaars and 36 KB’s Fairprice stores. In all, the
company added 0.8 mn sq ft during the quarter taking the total
operational space to 14.17 mn sq ft.
Restructuring of business verticals continues
PRIL has received board approval to transfer the E-zone (consumer
durables) business to a wholly owned subsidiary. The management
has indicated plans to slow down the pace of scaling up this
business owing to low margins, which is putting pressure on the
operating margins of the company.
View
While PRIL has been able to maintain a healthy SSSG, the burgeoning
debt continues to remain a cause for concern (more so in a rising interest
rate scenario). We have downgraded our rating from BUY to ADD.
The company added 0.8 mn sq ft of area during Q2FY11. During the
quarter, PRIL opened five Pantaloons, two Central, one E-zone, seven Big
Bazaars and thirty six KB’s Fairprice stores.
Strong SSSG across segments aided an 11% YoY increase in revenue per
sq ft from | 1,754 in Q2FY11 to | 1,947 in Q2FY11.
View
While PRIL has been able to maintain a healthy SSSG, the burgeoning
debt continues to remain a cause for concern (more so in a rising interest
rate scenario). We have downgraded our rating on the stock from BUY to
ADD.
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