HyperCity books profit for the second consecutive quarter

K Raheja-owned HyperCity has registered an operating profit for the second consecutive quarter. The company’s corrective measures like rightsizing of stores, while reducing inventories of slow moving goods and increasing share of high margin fashion and home categories, finally resulted in reporting profits.

The hypermarket format retailer, with 15 stores, posted retail sales worth Rs 263 crores for October-December quarter. Its same stores sales stood at Rs 2,147 per square foot in the past quarter, compared with Rs 1,793, same period, last year. Earnings before interest, tax, depreciation and amortisation were Rs 16 lakh for the third quarter. Including profit from sale of property, its profit totaled Rs 16.08 crore.

With 73 stores, K Raheja is looking forward to adding 6 Shoppers Stop stores, 3 HyperCity stores and 5 speciality stores over the next 12 months. The company has managed to generate Rs 150 crores of cash through sales last year and expects to earn around Rs 190 crores through sales over the next year.