Pantaloon Retail Results – Meet Expectations

April 26, 2010

Pantaloon Retail Revenue growth was in line with estimates, 13.9%. Despite higher operating costs – 21.1% of revenue, compared to 17.6% of revenue in value business – Lifestyle earns an operating margin of 17.8%, more than twice the 7.4% in the Value business. Though Lifestyle contributes about 30% to overall revenue; 43% of interest cost and 48% of depreciation costs is attributed to the segment. Capital employed in the segment is high because of higher establishment costs, as reflected in interest and depreciation costs of the business.

Value, at 1.6% net margin compared to 5.4% for the Lifestyle business, has potential to increase with improvement in operational efficiency and contribution of private labels. Absolute Inventory level was maintained at the same level as of the end of December.

The company earned a net Profit of Rs 55 cr for the Quarter Ended March-10.


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