Indian Retail Boom Financial Performance - AceAnalyser Meet/132638_20091119.pdf · Financial...
Transcript of Indian Retail Boom Financial Performance - AceAnalyser Meet/132638_20091119.pdf · Financial...
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Indian Retail Boom
Shopper’s Stop Limited Retail Group
Financial Performance
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Indian Retail Height
Retail- Highlights
Source : ICRIER Report 2008
• India moved to the 2nd place in the ATKearney‟s GRDI 2008. (Vietnam is on top)
• India topped the GRDI for 3 consecutiveyears till 2007.
• Indian Retail market caters to the world‟s2nd largest market.
• The total retail market in India is estimatedat $ 322 Bn
• Organized Retail Market is about 4%
• Indian Retail expected to cross US$ 590 Bnby 2011-12.
• Organized retail expected to be 16 % of TotalRetail by 2011.
4%
2007Indian Retail: USD 322 bn
Organised Retail: USD 12.88 bn
16 %
2011-12Indian Retail: USD 590 bn
Organised Retail: USD 94.4 bn 4
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Opportunity size – Proportion of Organized to Total Retail
Source : Merill Lynch India Retail Report March 2007
Category Penetration
1%
5%
10%
3%
9%
13%
10%
19%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Food & grocery
Textiles &
apparel
Jewelry & w
atches
Consumer durables
Pharmaceutic
als
Home solutions
Books, music &
gifts
Others
Category Penetration
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Retail Growth
Favourable
Demographics
Rising Consumer
Income Mall Boom
Key Growth Drivers
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Favourable Demographics
Consumer Component
Indian Consumer (< 35 years) Others (> 35 years)
Working Age
0
0.1
0.2
0.3
0.4
0.5
0.6
Year 2001 2010
Year
Popula
tion
Working age Non-working age
(# source – XX Factor report by Future Group)
The Indian consumer is among the
youngest in the world, with over 65% of
the population below 35 years
Women‟s employment participation grew
to 31% in 2005 from 26% in 2000, Rising
employment of women set to boost GDP
per capita up 5% by 2010 to more than
10% by 2025 #
The proportion of working age population
(20-54 years) is expected to rise from 44%
in 2001 to 50% by 2010.
The propensity to consume is significantly
higher among youngsters than the elderly,
even with same income levels.
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Real estate Supply
Real Estate :
Mall space has risen in the past few
years and is expected to rise further.
By 2008,there will be 350 malls
aggregating to 117 Mn sq.ft of retail
space. Of this, about a third is coming
up in the National Capital Region
(Delhi) and Mumbai, and the top 7
cities are expected to account for two-
thirds of the new retail space.
Malls in India
0
20
40
60
80
100
120
delh
i
mum
bai
bangalo
re
kolk
atta
hydera
bad
chennai
pune
chandig
arh
ludhia
na
coim
bato
re
cochin
nagpur
Year 2007
Year 2010
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Burgeoning Consuming Class
The Very rich
The Consuming class
The Climbers
The Aspirants
The Destitute
2001 - 02 2006 - 07
5.2 (30)
75.5 (432)
81.7 (472)
20.2 (117)
16.5 (95)
4.0 (23)
40.8 (230)
13.7 (77)
0.7 (4)
0.9 (5)
URBAN
Figures in Mn: Households (Population) Source: BW Marketing Whitebook & company estimation
7.6 (44)
91.4 (522)
94.7 (488)
17.2 (99)
14.0 (81)
2009 - 10
6.2 (34)
51.7 (293)
13.7 (77)
0.5 (3)
0.6 (4)
2.6 (15)
46.4 (265)
74.4 (429)
33.1 (192)
24.1 (140)
1.9 (11)
26.5 (150)
17.4 (98)
3.9 (22)
2.6 (16)
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Regulatory and Infrastructure barriers
Multiple Tax Structures
Labor and Other Regulations
Specialist Skills
FDI in retail prohibited, permissions given for
• Cash & Carry Wholesale Trading
• Franchisee / Licensing Agreements
Barriers in Retail Development
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Shopper’s Stop Limited Retail Group
HypermarketRetails : Foods &Grocery,
Apparel, General Merchandise
LIFESTYLE RETAILING MIXED RETAILING SPECIALITY RETAILING
Retails : Infant wear & Expecting mothers
apparel
OTHER INITIATIVES
Home StoreRetails :Furnishing, Furniture, Lighting
& Kitchen equipments
Airport retailingRetails : Duty Free,
Duty paid merchandise
Amusement & Gaming Centre
Group Retail Brand Architecture
SMALL FORMATS
Retails : Make up
Cosmetics
Concept Store Retails : Beauty, Jewellery &
AccessoriesBooks & Music store
Department StoresRetails : Apparel &
Non apparel
Retails : Make up
Cosmetics
Food & Grocery
(16%)
Apparel &
Fashion Accessories
(7%)
Home décor &Consumer Durables
(7%)
Entertainment &
Leisure
(9%)
Personal Care
(3%)
MALL, HIGH STREET AND
NEIGBOURHOOD STORES
AIRPORTRETAILING
INTERNET
Group Retail Brand Architecture
58% of wallet share comprises of Savings, Household Running expenses, Transport, Communication, Education, Loan servicing, Celebrations, HealthGroup caters to 42% of the Wallet Share of the Nupscale Customer (NRS), which
have an average annual income of Rs. 3.67 lacs, and comprises 2.3% of urban population
SOURCE: Images AC Neilsen study on The Indian Wallet & Brand share. 2007.
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We are among the Pioneers in
setting up
a nation – wide chain
of Large Format stores in India
with a
Professional Management
Department Store Group – Shopper’s Stop Limited
GROUP CORPORATE STRUCTURE
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Pioneers
First to create a store Brand.
First Retail Loyalty Program.
First co-branded credit card in the country in retail.
First to use the state of the art retail ERP- JDA.
First retailer to go to B-schools for recruiting fresh talent.
First to take graduates for front line sales staff.
First Indian entry in the prestigious New York Art Directors Guild
awards for the best campaign.
First to venture into Airport Retailing in a JV with The Nuance Group.
First to venture into Catalogue Retailing with The Home Retail Group.
Our training program created for the front end staff for their training
& growth titled Baby Kangaroo is recognized as one of the topInnovative HR practices by Delhi Management Association withErehwon Innovation Consulting in Nov, 06.
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Global Brands
• Introduced International brands which the new Indian aspires to own.
* French Connection, CK Jeans, GAS, ESPRIT, Tommy Hilfiger in apparel segment.
* Chanel, Lancome, MAC in cosmetics.
* CK, Armani, Gucci in sun glasses
* CK, Boss in watches
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Communication
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Communication
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Supply Chain
4 technology led Dedicated Distribution Centers, covering approx.300,000 sq ft, supply merchandise to all stores across the country
We have no storage back area in any of our stores.
Distribution Center Management is outsourced to and managedindependently by regional service providers
Regional Distribution Centers connected online to the central systems.
Our partners have an online access to their sales at our stores through BConnect B.
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Systems
First retailer in India to implement the state-of-the-art ERP JDA
• Auto Purchase order upon drop in predetermined minimum levels
• Auto Replenishment (E3)
• Arthur Planning (for forecasting)
• Warehouse Management System
• Perpetual Inventory Control System
• Intactix space and floor planning system
B2B with vendors
• Over 1000 partners connected online
Oracle Financials for finance & accounting
People Soft HRMS for our HR requirements
B2C online shopping portal
• Online retailing solution from Novator – Canada
Netezza Data warehouse with SAS analytical tools
• First retailer in India to display best in class analytics solutions
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Complete Integration
AI
M
MMS
Assortment planning
Arthur Planning
PerformanceAnalysis
WINDSS
Option Management
Data
Warehouse
B2B Partnership for
progress
SAS
Analytics
Warehouse
Management
CRM
Oracle
Finance
Data
Server
Oracle
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Strong value system
Absence of Hierarchy
Transparent and caring (Parichay / Outbound trainings & Meets)
Employees are recognized and rewarded ( Hadh Se Aage ,Baby
Kangaroo development programme & Jo Jeeta Wo Sikander )
Profit Linked reward scheme & ESOP
IGDS – retail learning's shared
5 days week and Flexible work hours
Space for learning, empowerment and decision – making
Life Cycle & E-Learning for associates
User friendly Interface adopting Peoplesoft
Knowledge Enhancement-RAI–IGNOU(BBA Course for associates)
Human Resource Policies
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Corporate Governance
• Independent Directors on the Board of the company.
• Professionally managed with ownership and management clearly demarcated.
• Standard Operating Procedures (SOPs) forall functions, which are subject to audit andare continuously improved upon to obtainthe best results.
• Internal Audit is done by Ernst & Youngand statutory audit by Deloitte Haskins &Sells.
• High level of disclosure in our AnnualReports
• 95% of vendor accounts reconciled.
• Have an online Disaster Recovery System
• The Institute of Chartered Accountants ofIndia (ICAI) rated our Annual Report to bethe Best Annual Report undermanufacturing & trading category for theyear 2005 - 06
Board of Directors
C L Raheja - ChairmanRavi RahejaNeel Raheja
Nitin SanghaviGulu Mirchandani
Deepak GhaisasShahzaad Dalal
Nirvik Singh
B S Nagesh – Vice ChairmanGovind Shrikhande – President &
CEO
Satisfaction Index
The Company has appointed CSMM (Customer Satisfaction Measurement and
Management) a part of IMRB (Indian Marketing and Research Bureau) to do an
impartial evaluation of our relationship and expectation with various
stakeholders over the last 5 years. ESOMAR recognized our CSI program as the
only one from ASIA and invited Shoppers‟ Stop to its conference in Dublin
Partner Satisfaction Index (PSI)
This helps the organization understand the expectations of business partners
Customer Satisfaction Index (CSI)
Evaluates parameters of customer satisfaction including mystery shopping
•
Associate Satisfaction Index (ASI)
An annual online survey of associates tracking employee loyalty
(Scores out of 100)
(Scores out of 5)
(Scores out of 5)
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Year 2007 2008 2009
Scores 4.05 4.07 3.97
August 2006 November 2007 February 2009
63 63 81
Year 2007 2008 2009
Scores 4.00 4.08 3.89
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Some Snap Shots
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Push & Shove
Elliza Donatein
Eliza Donatein
Life
Vettorio Fratini
Our Private Brands
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Life
“Think Green”
• Life : „Brand with a Cause‟.
• A powerful initiative in support of the “Think Green” philosophy.
• Neem seeds packed with every merchandise.
• Target to plant 1.5 lakh Neem plants in next 90 days time.
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Our Presence
and still expanding…
Existing Store Locations
DC locations
Kolkatta(3)
Delhi(3)
Jaipur
Mumbai
(8) Hyderabad
Bangalore
(2)
Chennai
Gurgaon(1)Ghaziabad (1)
Pune
(2)
Mother careMAC
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• Presence in 12 Cities
– Shoppers’ Stop 27– Home Stop 4– Mother Care 22 [13]– Mac & Clinique 10– Estee Lauder 2– Airport 2 – Crossword 29 [7]
• -- Arcelia 2 • Total Area 1,877,503 Sq.ft.
• Figures in brackets represent shop in shop
Lucknow
Ahmedabad
Baroda
Arcelia
Noida
Crossword
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Store Area as on 1st April,09 Chargeable Area (Sq.ft.)
Shoppers Stop 1,547,947
Speciality Stores 2,73,887
Addition During the year
• Shoppers Stop Addition 62,277
• Shoppers Stop (Right sizing) (7,850)
• Specialty Stores Additions 5,409
• Specialty Closure (5,170)
• Specialty (Correction) 1,003
• ____________
• Store Area as on 30th Sep,09 1,877,503
==========
Space ramp-up (Sq. ft.)
Existing Stores of Shoppers Stop Ltd.
1.2 mn
Sq
fts.
1.6 mn 1.7 mn
1.7 mn 1.8 mn 1.9 mn 1.9 mn
Shoppers Stop – Cyberabad
Opening Date : 14th Oct 2009
Chargeable Area : 96119 sq.ft
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Home Stop - Vashi, Navi Mumbai
Opening Date : 3rd December, 2008
Chargeable Area: 17,195 Sq. Ft.
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Hypercity – Hyderabad
Hypercity launched its 4th store at Hyderabad on 1st August 2009
Chargeable Area - 173708Sq ft
MAC - GVK, Hyderabad
MAC was launched at GVK, Hyderabad on 29th May 2009 34
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Clinique – Inorbit Malad
The first Clinique SIS in SSL stores opened on December 23rd, 2008
Estee Lauder – Select Saket, Delhi
36Estee Lauder was launched at Select Saket on 24th June 2009
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Crossword – Inorbit, Cyberabad
Opening Date : 14th October 2009
Chargeable Area : 2890 Sq. Ft.
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Timezone – Vashi
Our Loyalty Program
First Citizen member base is 14.51 lacs @
The contribution is – 70% with GV and 73%
without GV. This is the one of the largest
Loyalty program in the country.( @ details as on 30th September, 2009 )
“Second best in the Consumer Loyalty Survey” in the retail sector by CSMM in April’07
Co-branded Credit & Debit Cards
with Citibank NA
Having total count of 225375
members#( # forming part of the Loyalty program)
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• Mr. B.S. Nagesh, Customer Care Associate & Managing Director was inductedinto the World Retail Hall of Fame at the World Retail Congress Award 08.(For more information visit www.worldretailcongress.com)
• Shoppers Stop won the “Emerging Market Retailer of the year at the WorldRetail Congress Awards 08”.Tesco, H&M, and Woolworths SA had won the awards in other categories.
International Recognition
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Some Industry Honors
Shoppers Stop Won the
- 3 PC Quest Enterprise Awards in April 2009 for various initiatives
- 2 Network Computing EDGE Awards in May 2009
Listing of our Group CTO Mr Arun Gupta in Global CIO 50 by Information Week. Amongst 10 CIOs from India in the list
Hypercity Won the “ Automated Replenishment Software Solution “ Award atNetwork Computing EDGE.
“Department Store of the year” at the Star Retailer Awards in Dec‟08 & Dec 07.
“Most Admired Retailer – Customer Relation Management” to Shoppers Stop atImages Retail forum, Sep‟2008.
Received the following awards from the “ Clothing Manufacturers Association ofIndia”(CMAI) for the year 2007-08 on 9th July‟08:
- Brand of the Year – Ladies Ethnic Wear – STOP
- Golden Scale Trophy – CMAI Special Award to Mr. Nagesh for being theFirst Indian Retailer to be inducted into the World Retail Hall of Fame.
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• Sales Growth:
Shoppers Stop department stores : 10%
All formats : 11%
• LTL Sales Growth:
Shoppers Stop department stores : 2.3%
stores > 5 years : -2.3%
stores < 5 years : 10.5%
• Sales Per Sq.ft. on chargeable area (Built up sq.ft.) :
Shoppers Stop department stores : Rs 2,105 (LY Rs. 2,171)
• Customer entry for Shoppers Stop Departmental stores Increasedby 5.6%
Key Financial Highlights – Q2 2009-10
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• Sales Growth:
Shoppers Stop department stores : 6%
All formats : 7%
• LTL Sales Growth:
Shoppers Stop department stores : -1.6%
stores > 5 years : -6.6%
stores < 5 years : 7.9%
• Sales Per Sq.ft. on chargeable area (Built up sq.ft.) :
Shoppers Stop department stores : Rs 3,737 (LY Rs. 3,969)
• Customer entry for Shoppers Stop Departmental stores remainedconstant.
Key Financial Highlights – H1-2009-10
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Operational Indicators – Q2 2009-10
SS Dept Like to Like growth by
SS Dept Sales Per Sq.ft. degrown by 3%.
2.3%
Like To Like Sales
31,51130,810
10,000
17,000
24,000
31,000
38,000
45,000
Q2-08-09 Q2-09-10
Rs.in Lacs
Sales Per Sq.ft. (in Rs.)
21712105
100
700
1300
1900
2500
3100
3700
Q2-08-09 Q2-09-10
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Operational Indicators – H1-2009-10
SS Dept Sales Per Sq.ft. degrown by 5.9%.
SS Dept Like to Like Sales degrown by 1.6%
Like To Like Sales
56,147 55,247
1,000
31,000
61,000
91,000
H1-08-09 H1-09-10
Rs.in Lacs
Sales Per Sq.ft. (in Rs.)
3969 3737
1000
2500
4000
H1-08-09 H1-09-10
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Average Selling Price (“ASP”)Transaction Size (Rs.)
Conversion Ratio (%)Customer Entry (figures in lacs.)
Operational Indicators – Q2-2009-10
5.3%11%
3%LTL Volume
5.6%60.74
64.12
5860626466
Q2-08-09 Q2-09-10
27%29%
20%
25%
30%
Q2-08-09 Q2-09-10
1747 1940
4001,0001,6002,200
Q2-08-09 Q2-09-10
736775
700800900
1,000
Q2-08-09 Q2-09-10
LTL stores
degrown by 6.5%
LTL stores
degrown by 2.2%
LTL stores
grown by 12%
7%
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Average Selling Price (“ASP”)Transaction Size (Rs.)
Conversion Ratio (%)Customer Entry (figures in lacs.)
Operational Indicators –H1-2009-10
4.9%8.4%
6.5%• LTL Volume
0.1%
2.8%
LTL stores
degrown by 12% LTL stores
grown by 1.7%
LTL stores
grown by 9%
118.50
118.60
118
119
119
119
119
H1-08-09 H1-09-10
26%
27%
20%
25%
30%
H1-08-09 H1-09-10
17711921
0
1,000
2,000
H1-08-09 H1-09-10
781 818600700800900
H1-08-09 H1-09-10
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Merchandise Mix – Q2 2009-10
• Private Label Mix
decreased by 2.3%
Private Label Mix
Merchandise Buying Model
• Private Label Sales
remained constant.
% Mix
5749
3039
13 12
0
25
50
75
100
Q2-08-09 Q2-09-10
Bought Out Consignment/SOR Concession
22.4%
20.1%
10.0%
13.0%
16.0%
19.0%
22.0%
25.0%
Private Label
Q2-08-09
Q2-09-10
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• Private Label Mix
decreased 2.3%
• Private Label
Sales decreased
by 6%
Private Label Mix
Merchandise Buying Model
% Mix
58 5028
3714 13
0255075
100
H1-08-09 H1-09-10
Bought Out Consignment/SOR Concession
Merchandise Mix – H1-2009-10
21.4%
19.1%
15.0%
17.0%
19.0%
21.0%
23.0%
25.0%
Private Label
H1-08-09
H1-09-10
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• Non Apparel consists
of Home, Leather,
Watches, Jewellery,
Electronics and
Personal accessories
Children includes Mother Care
Revenue Mix – Q2 2009-10CATEGORY WISE SALES (%)
62.7%
37.3%
61.0%
39.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Apparels Non Apparels
Q2-08-09
Q2-09-10
DIVISION WISE SALES (%)
34.4%
19.3%
9.0%
37.3%
32.4%
19.5%
9.0%
39.0%
-2.0%
3.0%
8.0%
13.0%
18.0%
23.0%
28.0%
33.0%
38.0%
43.0%
48.0%
Mens
Ladies
Childre
ns
Non Appare
ls
Q2-08-09
Q2-09-10
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• Non Apparel consists
of Home, Leather,
Watches, Jewellery,
Electronics and
Personal accessories
Children includes Mother Care
Revenue Mix – H1-2009-10CATEGORY WISE SALES (%)
61.6%
38.4%
59.6%
40.4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Apparels Non Apparels
H1-08-09
H1-09-10
DIVISION WISE SALES (%)
33.9%
19.3%
8.4%
38.4%
31.7%
19.1%
8.8%
40.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
Mens
Ladies
Childre
ns
Non Appare
ls
H1-08-09
H1-09-10
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Operational Efficiency Q2 & H1-2009-10
:Shrinkage as % of Gross Retail Sales
Q2-09-10
0.51%0.30%
0.1%
0.4%
0.7%
1.0%
Q2-08-09 Q2-09-10
H1-2009-10
0.56% 0.37%
0.1%
0.3%
0.6%
0.8%
H1-2008-09 H1-2009-10
(SS Dept. Stores)
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STAND ALONE FINANCIALS
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Format wise P&L Q2 -2009-10
Other formats comprise:
• Home Stop
• Crossword
• Mothercare
• MAC, Clinique & Estee Lauder
• Arcelia
• Food & Beverages (only for Q2-2008-09)
• Airport Retail
• Ecom
Rs.in lacs
Q2-2009-10 SS D ept Other F o rmats C o mpany
Revenue 34,451.4 6,434.6 40,886.0
Operating Income 344.4 98.4 442.8
Gross Margin 10,284.2 2,190.0 12,474.1
% to sales 29.9% 34.0% 30.5%
Operating Expenses 8,177.3 2,072.8 10,250.2
% to sales 23.7% 32.2% 25.1%
EBIDTA 2,451.3 215.5 2,666.7
% to sales 7.1% 3.3% 6.5%
Finance Charges 385.6 159.1 544.7
% to sales 1.1% 2.5% 1.3%
Depreciation 424.3 199.7 624.0
% to sales 1.2% 3.1% 1.5%
PBT 1,641.4 (143.3) 1,498.1
% to sales 4.8% -2.2% 3.7%
Q2-2008-09 SS D ept Other F o rmats C o mpany
Revenue 30,647.6 6,137.0 36,784.6
Operating Income 378.7 85.2 463.9
Gross Margin 9,277.9 2,018.3 11,296.2
% to sales 30.3% 32.9% 30.7%
Operating Expenses 8,633.7 2,480.9 11,114.6
% to sales 28.2% 40.4% 30.2%
EBIDTA 1,022.9 (377.4) 645.5
% to sales 3.3% -6.1% 1.8%
Finance Charges 408.9 91.7 500.6
% to sales 1.3% 1.5% 1.4%
Depreciation 952.7 462.7 1,415.4
% to sales 3.1% 7.5% 3.8%
PBT (338.7) (931.8) (1,270.5)
% to sales -1.1% -15.2% -3.5%
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Financial Summary – Q2 2009-10Shopper’s Stop Ltd. Rs. in lacs
11%
10%
313%
209%
9%
8%
Particular Q2-09-10 Q2-08-09
Retail Turnover 41,328.8 37,248.5
Retail Sales (Before VAT) 40,886.0 36,784.6
Retail Sales (Net of VAT) 39,155.1 35,139.1
Margin on Sales 12,474.1 11,296.2
Margin on Sales % 30.5% 30.7%
Other Retail Operating Income 442.8 463.9
Operating expenses 10,250.2 11,114.6
Operating expenses % 25.1% 30.2%
Operating Profit (EBIDTA) 2,666.7 645.5
Operating Profit (EBIDTA) % 6.5% 1.8%
Finance Charges 544.7 500.6
Depreciation 624.0 1,415.4
PBT 1,498.1 (1,270.5)
PBT % 3.7% -3.5%
Tax 292.0 (168.9)
Profit After Tax 1,206.1 (1,101.6)
Profit After Tax % 2.9% -3.0%
218%
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Format wise P&L– H1-2009-10
Other formats comprise:
• Home Stop
• Crossword
• Mothercare
• MAC, Clinique & Estee Lauder
• Arcelia
• Food & Beverages ( only for H1-2008-09)
• Airport Retail
• Ecom
Rs.in lacs
H 1-2009-10 SS D ept Other F o rmats C o mpany
Revenue 59,653.1 11,747.7 71,400.8
Operating Income 578.7 168.8 747.5
Gross Margin 18,540.9 4,029.6 22,570.6
% to sales 31.1% 34.3% 31.6%
Operating Expenses 15,239.0 3,897.3 19,136.2
% to sales 25.5% 33.2% 26.8%
EBIDTA 3,880.6 301.2 4,181.8
% to sales 6.5% 2.6% 5.9%
Finance Charges 745.2 347.6 1,092.7
% to sales 1.2% 3.0% 1.5%
Depreciation 866.4 368.5 1,234.9
% to sales 1.5% 3.1% 1.7%
PBT 2,269.1 (414.8) 1,854.3
% to sales 3.8% -3.5% 2.6%
H 1-2008-09 SS D ept Other F o rmats C o mpany
Revenue 55,639.4 11,098.9 66,738.3
Operating Income 774.8 179.9 954.7
Gross Margin 17,731.6 3,638.4 21,370.0
% to sales 31.9% 32.8% 32.0%
Operating Expenses 17,097.4 4,530.9 21,628.3
% to sales 30.7% 40.8% 32.4%
EBIDTA 1,409.0 (712.6) 696.4
% to sales 2.5% -6.4% 1.0%
Finance Charges 717.6 139.2 856.8
% to sales 1.3% 1.3% 1.3%
Depreciation 1,900.8 871.4 2,772.2
% to sales 3.4% 7.9% 4.2%
PBT (1,209.4) (1,723.2) (2,932.6)
% to sales -2.2% -15.5% -4.4%
57
Financial Summary –H1-2009-10Shopper’s Stop Ltd. Rs. in lacs
7%
6%
500%
155%
28%
12%
Particular H1-2009-10 H1-2008-09
Retail Turnover 72,148.2 67,693.0
Retail Sales (Before VAT) 71,400.8 66,738.3
Retail Sales (Net of VAT) 68,240.8 63,694.6
Margin on Sales 22,570.6 21,370.0
Margin on Sales % 31.6% 32.0%
Other Retail Operating Income 747.5 954.7
Operating expenses 19,136.2 21,628.3
Operating expenses % 26.8% 32.4%
Operating Profit (EBIDTA) 4,181.8 696.4
Operating Profit (EBIDTA) % 5.9% 1.0%
Finance Charges 1,092.7 856.8
Depreciation 1,234.9 2,772.2
PBT 1,854.3 (2,932.6)
PBT% 2.6% -4.4%
Tax 395.8 (299.3)
Profit After Tax 1,458.5 (2,633.3)
Profit After Tax % 2.0% -3.9%
163%
58
Financial Performance – Q2 2009-10
16
Retail Turnover Gross Cash Margin
2,667.0
645.5
0
500
1,000
1,500
2,000
2,500
3,000
Q2-2008-09 Q2-2009-10
Rs
Lacs
EBIDTA PAT
Gross Margin %
decreased by 20
basis points
41,329.0
37,249.0
35,000
36,000
37,000
38,000
39,000
40,000
41,000
42,000
Q2-2008-09 Q2-2009-10
Rs
Lacs12,474.0
11,296.0
10,600
10,800
11,000
11,200
11,400
11,600
11,800
12,000
12,200
12,400
12,600
Q2-2008-09 Q2-2009-10
Rs
Lacs
1,206.0
(1,102.0)-1,500
-1,000
-500
0
500
1,000
1,500
Q2-2008-09 Q2-2009-10
Rs
Lacs
59
Financial Performance – H1 2009-10
16
Retail Turnover Gross Cash Margin
4,182.0
696.4
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
H1-2008-09 H1-2009-10
Rs
Lacs
EBIDTA PAT
Gross Margin %
decreased by 40
basis points
72,148.0
67,693.0
65,000
66,000
67,000
68,000
69,000
70,000
71,000
72,000
73,000
H1-2008-09 H1-2009-10
Rs
Lacs 22,571.0
21,370.0
20,600
20,800
21,000
21,200
21,400
21,600
21,800
22,000
22,200
22,400
22,600
22,800
H1-2008-09 H1-2009-10
Rs
Lacs
1,459.0
(2,633.0)-3,000
-2,500
-2,000
-1,500
-1,000
-500
0
500
1,000
1,500
2,000
H1-2008-09 H1-2009-10
Rs
Lacs
664
607
400
500
600
700
Q2-08-09 Q2-09-10
0.79
1.01
0.50
0.80
1.10
Q2-08-09 Q2-09-10
GMROF (Rs. per unit of retail space)
GMROI (Rs. inventory) GMROL (Rs. per employee)
365,035
314,702
150,000
250,000
350,000
Q2-08-09 Q2-09-10
28%16%
• Company has improved
GMROI,GMROF & GMROL.
Operational Efficiency Q2 2009-10
SS Dept. Stores
9%
1,204
1,159
1,100
1,120
1,140
1,160
1,180
1,200
1,220
1,240
1,260
H1-2008-09 H1-2009-10
1.44
1.85
1.20
1.70
2.20
2.70
H1-2008-09 H1-2009-10
GMROF (Rs. per unit of retail space)
GMROI (Rs. inventory) GMROL (Rs. per employee)
657,738
581,365
500,000
550,000
600,000
650,000
700,000
H1-2008-09 H1-2009-10
29%
13%
Operational Efficiency H1-2009-10SS Dept. Stores
• Company has improved GMROL,
GMROI & GMROF. 4%
62
CROSSWORD BOOKSTORES LTD.
FINANCIALS
63
Financial Summary – Q2-2009-10
Crossword Book stores Ltd. Rs. in lacs
13%
25%
Particular Q2-09-10 Q2-08-09
Gross Retail Turnover 97.6 99.6
Gross Retail Sales (Before VAT) - -
Gross Retail Sales (Net of VAT) - -
Margin on Sales - -
Other Retail Operating Income 97.6 99.6
Operating expenses 37.6 30.7
Operating Profit (EBIDTA) 60.0 68.9
Finance Charges (66) (37)
Depreciation 18 18
Profit Before Tax 107.9 87.7
Tax 20.00 17.25
Profit After Tax 87.88 70.48
23%
64
Financial Summary – H1-2009-10
Crossword Book stores Ltd. Rs. in lacs
36%
24%
Particular H1-09-10 H1-08-09
Retail Turnover 152.4 211.8
Retail Sales (Before VAT)
Retail Sales (Net of VAT)
Margin on Sales
Other Retail Operating Income 152.4 211.8
Operating expenses 49.5 50.5
Operating Profit (EBIDTA) 102.8 161.3
Finance Charges (131.8) (42.4)
Depreciation 36.6 36.6
Profit Before Tax 198.0 167.1
Tax 14.9 19.4
Profit After Tax 183.18 147.75
19%
65
CONSOLIDATED
FINANCIALS
66
Consolidated Financial – Q2 2009-10
Rs. in lacs
10%
4678%
148%
150%
10%
22%
Consolidation includes:
• Shoppers Stop Limited
• Crossword Bookstores Ltd.
• Hypercity Retail (India) Ltd.
• Gateway Multichannel Ltd.• Timezone Entertainment Pvt. Ltd.
• Nuance Group (India) Pvt. Ltd.
Particular Q2-2009-10 Q2-2008-09
Retail Turnover 42,384.8 38,371.2
Retail Sales (Before VAT) 41,824.5 37,792.5
Retail Sales (Net of VAT) 40,093.5 36,147.0
Margin on Sales 13,132.7 11,983.6
Margin on Sales % 31.4% 31.7%
Other Retail Operating Income 560.3 578.6
Operating expenses 11,157.1 12,617.6
Operating expenses % 26.7% 33.4%
Operating Profit (EBIDTA) 2,535.9 (55.4)
Operating Profit (EBIDTA) % 6.1% -0.1%
Finance Charges 546.1 700.7
Depreciation 790.7 1,651.1
Profit Before Tax 1,199.2 (2,407.1)
Profit Before Tax % 2.9% -6.4%
Tax 323.5 (144.4)
Minority Interest (7.8) 435.8
Profit After Tax 867.9 (1,826.9)
Profit After Tax % 2.1% -4.8%
67
Consolidated Financial – H1-2009-10
Rs. in lacs
6%
798%
124%
128%
7%
9%
Particular H1-2009-10 H1-2008-09
Retail Turnover 74,322.1 69,560.3
Retail Sales (Before VAT) 73,349.8 68,361.7
Retail Sales (Net of VAT) 70,189.8 65,318.0
Margin on Sales 24,020.7 22,579.5
Margin on Sales % 32.7% 33.0%
Other Retail Operating Income 972.3 1,198.6
Operating expenses 20,913.4 24,362.9
Operating expenses % 28.5% 35.6%
Operating Profit (EBIDTA) 4,079.6 (584.8)
Operating Profit (EBIDTA) % 5.6% -0.9%
Finance Charges 1,120.7 1,234.7
Depreciation 1,571.3 3,147.6
Profit Before Tax 1,387.6 (4,967.1)
Profit Before Tax % 1.9% -7.3%
Tax 426.6 (266.3)
Minority Interest 8.5 738.1
Profit After Tax 969.5 (3,962.6)
Profit After Tax % 1.3% -5.8%
Balance Sheet – Shopper’s Stop Ltd
68
Rs.in Lacs
Key Ratios – Shopper’s Stop Ltd
69
70
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