Q3FY22 Result Update - Shoppers Stop - ICICI Direct

Healthy demand owing to strong festive and wedding season led SSL to reach close to pre-Covid levels in Q3FY22 (~96% of Q3FY20).

• On a favourable base revenue grew 34% YoY to Rs. 951.2 crore
• SSL achieved operational cost savings worth Rs. 42 crore (vs. Q3FY20 levels). Owing to positive operating leverage EBITDA grew 2x YoY to Rs. 183 crore
• PBT at Rs. 66 crore vs. loss of Rs. 28 crore in Q3FY21 (Q3FY20 PBT: Rs. 63 crore)
• Liquidity position remains fairly stable with cash & investments worth Rs. 207 crore and debt worth Rs. 194 (net surplus Rs. 13 crore, D/E: 0.3x)

Key triggers for future price performance

• We believe the new MD (former Westside CEO) would bring in his expertise in the private label brands domain and focus on improving the share of high margin private label brands (~14% of revenues)
• It has embarked on a healthy store addition plans with opening of five stores in Q4FY22 and 12 in FY23E. Majority of the store addition in Tier II/III cities. The capex for the same is expected to be Rs. 100 crore, to be funded mainly through internal accruals
• The management expects steady SSSG growth of 9-11% in the near term
• Key thrust on accelerating investments in omni-channel with long term target of channel contributing 20% of sales from current ~8%
• Higher focus on beauty segment (currently ~17% of revenues) through scale up of its own private brand Arcelia (75+ SKUS to be launched in Q4)

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

Shares of Shoppers Stop Limited was last trading in BSE at Rs. 378.65 as compared to the previous close of Rs. 361.45. The total number of shares traded during the day was 315132 in over 17737 trades.

The stock hit an intraday high of Rs. 425.00 and intraday low of 369.00. The net turnover during the day was Rs. 125911219.00.

Source : Equity Bulls

Keywords

ShoppersStop INE498B01024 Q3FY22 ResultUpdate ICICIDirect