Shoppers Stop reports Rs 77 cr net profit

The company had reported a net loss of Rs 25.11 crores in Q3 FY2021.

Its revenue from operations grew 33.82 per cent at Rs 958.11 crores during the October-December quarter as against Rs 715.97 crores a year-ago.

"We are witnessing positive signs from a strategy that we initiated in the last two years. As the fashion and beauty retail is seeing encouraging early trends from the Wardrobe Reboot, we are rightly poised to capture the pent-up demand," Shoppers Stop MD and CEO Venn Nair said.

"Customer sentiments are extremely positive owing to the double vaccination, lesser restrictions and an overall improvement in safety protocols, leading to increased customer footfalls for us," Nair said.

He noted that the company saw a sustained demand during the festive period and the marriage season in October and November.

"We have witnessed a high customer spend and a higher average transaction value (ATV). While omnichannel is here to stay, our present online contribution gives us immense headroom to grow," he added.

The company noted that it has become net debt free.

During the quarter, Shoppers Stop incurred a capex of Rs 55 crores for new stores and renovations. It opened five new stores during the period.

"Encouraged by the strong rebound, the company expects an accelerated growth trajectory now, driven by a robust recovery from the lockdown blues, accelerated small size store expansion, growth in the private-label mix, and an increased focus on high growth beauty business," it said.

Stating that the third Covid-19 wave may cause a small blip in the growth trajectory, the company said: "Given the underlying business fundamentals, the enhanced digital capabilities and the balance sheet strength, Shoppers Stop is well poised to embark on a new wave of growth and create value for all stakeholders."