Shoppers Stop Q2, Operating Losses continue on COVID impact

While the operating losses and the net losses were not as bad as the numbers reported in Jun-20, the September quarter numbers continue to show deep problems due to malls still not getting the permission to open.

Oct 16, 2020 10:10 IST India Infoline News Service

Shoppers Stop operating losses and the net losses were not as bad as the numbers reported in Jun-20, the September quarter numbers continue to show deep problems due to malls still not getting the permission to open. As of now it is predominantly online sales that are keeping the business running.
The net loss looks better than the operating loss for the September quarter over the June quarter only because the revenues have shown signs of improvement but still not enough to sustain the high levels of fixed costs.
Here are the financial highlights


Particulars Sep-20 Quarter Growth (YOY) Growth (QOQ)
Total Revenues Rs296.98cr -65.73% +431.46%
Operating Profit Rs-133.89cr Not Applicable Not Applicable
Net Profits Rs-97.70cr Not Applicable Not Applicable
Key Ratios Sep-20 Quarter Sep-19 Quarter Jun-20 Quarter
Diluted EPS Rs-11.10 Rs-0.93 Rs-13.67
Operating Margins -45.08% +5.45% -372.94%
Net Profit Margin -32.90% -0.94% -215.19%


Key takeaways from the Sep-20 quarter results
  • Due to the huge losses made at an operating level, the operating net cash flows continue to be in the negative putting strain on the finances.
  • Crossword Bookstores, a subsidiary of Shoppers Stop, has accumulated losses of Rs.58 crore as of Sep-20 and that is also eroding the net worth of Shoppers Stop.
  • The rent concessions, as permitted by the Ministry of Corporate Affairs have been accounted for by the company as other income, which explains the sharp rise in other income in the books of Shoppers Stop..

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