Hyper City to raise equity funds for expansion

Hyper City the retail format of Shoppers Stop hopes to breakeven at the Ebitda level next year and pretax profit level the year after. There are 20 Hyper City outlets across India occupying 1.4 million square feet retail space across 11 cities. The vertical has shown reasonably good sequential growth. For the first quarter, it closed at a negative 0.5 per cent like-to-like growth, which has now converted into a 3.4 per cent like-to-like growth. This is essentially on account of all the steps taken in the last two years that have started delivering results.

While overall sales growth was around 15 per cent, the share of fashion has increased from 15.4 per cent to 16.1 per cent and the net margin was up by 100 basis points. The hyper format’s gross margin stood at 22.8 per cent and profit after tax was Rs 17.26 crores, which included a profit of Rs 10.36 crores from the sale of one property option. Meanwhile Shoppers Stop is looking to raise funds for Hyper City by March 2017. The target is between Rs 150 crores and Rs 200 crores in equity.