Future Retail Ltd's Q2FY19 standalone net profit rises 14.3% yoy to Rs175cr: In-line with Estimates

The company’s standalone revenue in the period stood at Rs4,929cr, up 9.4% yoy and 8.6% qoq.

Nov 14, 2018 11:11 IST India Infoline Research Team

Future Retail Ltd Q2FY19

Standalone Results Q2FY19: (in Rs cr)

Q2FY19 YoY (%)
Revenue 4,928.52 9.4
EBITDA 247.59 17.3
EBITDA Margin (%) 5 33
Net Profit (adjusted) 175.10 14.3
***EBITDA margin change is bps

Future Retail Ltd’s revenue in Q2FY19 grew 9.4% yoy and 8.6% qoq to Rs4,929cr. EBITDA for the quarter came in at Rs248cr, up 17.3% yoy and 12.1% qoq. EBITDA margin expanded 33bps yoy and 16bps qoq to 5.02%. Adjusted PAT stood at Rs175cr, up 14.3% yoy and 14.4% qoq. Adjusted PAT was in-line with the estimates of Rs177cr.

• Future Retail added nine Big Bazaar, seven FBB, and 123 small-format stores in Q2FY19, taking the total count to 284, 74, and 959 stores, respectively.
• Big Bazaar SSG stood at 9.4% in Q2FY19 vs 13.8% yoy. SSG for the whole company stood at 5.9% vs 10.2% yoy.
• Count of Easyday Club Members stood at 0.8mn in Q2FY19 compared to 0.3mn yoy.
• Acquired 38 stores of Foodworld aggregating to ~0.1mn sq ft w.e.f. June 1, 2018. The total retail area in Q2FY19 stood at 15.4mn sq ft vs 12.7mn sq ft yoy.  
• Cost of goods sold stood at 73.3% of sales vs 74.3% yoy, which aided in EBITDA margin expansion.
• Employee benefit expenses stood at 5.5% of sales vs 5.1% yoy.
• Other expenses stood at 8.7% of the revenue vs 8.4% yoy.
• Acquisition of demerged retail business of Hypercity Retail (India) Ltd was completed w.e.f December 1, 2017. The company is on track to achieve 5% EBITDA in the upcoming quarters for this business. Hypercity EBITDA loss for the quarter stood at 6.7% vs 20.2% in Q4FY18.
• Finance cost grew 11.5% yoy to Rs55cr.

Technical View:

Future Retail Ltd ended at Rs527.55, up 20.15 points, or 3.97%, from its previous close of Rs507.40 on the BSE. The scrip opened at Rs509 and touched a high and low of Rs531.90 and Rs502, respectively. A total of 16,17,267 (NSE+BSE) shares were traded on the counter. The stock traded below its 200-DMA.

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