Q2FY22 Result Update - Shoppers Stop - ICICI Direct

Post easing of store restrictions, consumer sentiments rebounded sharply with revenue recovering swiftly at 75% of pre-Covid levels.

• On a favourable base, revenue grew 116% YoY to Rs. 631.6 crore
• SSL achieved operational cost savings worth Rs. 62 crore (vs. Q2FY20 levels). This reduced quarterly cash burns, to a certain extent
• PBT losses were at Rs. 4.1 crore vs. Rs. 136.5 crore in Q2FY21. During H1FY22, the company reported negative FCF worth Rs. 65 crore (vs. Rs. 210 crore YoY)
• SSL's liquidity position remains fairly stable with cash & investments worth Rs. 151 crore and debt worth Rs. 213 (net debt Rs. 62 crore, D/E: 0.4x)

Key triggers for future price performance

• Strong start to festive season with sales recovering more than 100% in East, followed by North
• We believe the new MD (former Westside CEO) would bring his expertise in private label brands domain and focus on enhancing share of private labels
• The company expects to ramp up space through addition of 10 stores (shut four loss making stores in H1FY22) in FY22E (capex: Rs. 100 crore for FY22E)
• SSL undertook cost optimisation initiatives in FY21 of which it expects ~45% to be sustainable in nature (Rs. 200 crore cost savings in FY22E). This would aid margin, going forward, with lower breakeven sales for new stores
• Key thrust on accelerating investments in omni-channel with long term target of the channel contributing 20% of sales from current ~8%

For details, click on the link below: Link to the report

Shares of Shoppers Stop Limited was last trading in BSE at Rs. 320.85 as compared to the previous close of Rs. 336.65. The total number of shares traded during the day was 129477 in over 6158 trades.

The stock hit an intraday high of Rs. 345.60 and intraday low of 315.00. The net turnover during the day was Rs. 42757317.00.

Source : Equity Bulls

Keywords

ShoppersStop INE498B01024 SHOPERSTOP DepartmentStores Q2FY22 ResultUpdate ICICIDirect