Q4FY21 Company Update - Shoppers Stop - ICICI Direct

SSL's Q4FY21 print was broadly in line with our estimates with revenue down 5% YoY to Rs. 671.2 crore (non-GAAP revenue fell 10% YoY with SSSG at -10.7%). On the base of Q4FY19, recovery rate was at 85% in Q4FY21 vs. 71% in Q3FY21. Non-metro cities continued to recover at a faster pace (4% YoY growth) vs. stores in metro cities (down 18% YoY). Omni-channel strategies continue to provide the key thrust with digital sales growth of 188% YoY (6.2% of overall sales up 430 bps YoY). On account of favourable product mix (higher share of private label brands), gross margins improved 90 bps YoY to 40.9%. On the back of significant cost rationalisation measures, PBT losses narrowed down substantially to Rs. 37.2 crore vs. loss of Rs. 157.5 crore in Q4FY20. The management expects the business to remain resilient amid uncertainty in the near term and see through the current health crisis. The company expects to ramp up space through addition of 20 stores (10 departmental stores) in FY22E (capex: Rs. 100 crore for FY22E).

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Shares of SHOPPERS STOP LTD. was last trading in BSE at Rs.238.6 as compared to the previous close of Rs. 230.45. The total number of shares traded during the day was 81614 in over 3413 trades.

The stock hit an intraday high of Rs. 243 and intraday low of 226.65. The net turnover during the day was Rs. 19393725.

Source : Equity Bulls

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