Shoppers Stop clocks in a low of Rs 21.80 cr in Q2

Shoppers Stop has incurred a standalone net loss of Rs 21.80 crore in Q2 ended September 30. Reason: low sales and exceptional loss. Comparatively, the company had posted a net profit of Rs 10.68 crore in July-September quarter a year ago. Total income stood at Rs 843.65 crore during the quarter under review, down 12.30 per cent as against Rs 962.01 crore in the year-ago period.

Q2 was relatively subdued owning to stock and supply challenges on account of GST implementation. However, teething issues have been resolved and the company is well on track for a strong festive quarter, says Shoppers Stop Managing Director Govind Shrikhande.

Total expenses were down 12.79 per cent to Rs 824.15 crore as against Rs 945.03 crore earlier. The company also reported exceptional loss of Rs 33.78 crore due to impairment in value of investments in its subsidiary HyperCity Retail. During the quarter, Shoppers Stop's board approved issuance of 43.95 lakh equity shares of Rs 5 each at price of Rs 407.78 per piece to Amazon.Com NV Investment Holdings LLC for Rs 179.25 crore on preferential basis.

Shoppers Stop also disposed its 40 per cent stake in the joint venture with Swiss major Nuance Group and exited from duty free airport stores. Shares of Shoppers Stop settled 1.63 per cent lower at Rs 517.95 on BSE. In a separate filing, the company stated that it’s independent director Gareth Thomas has resigned with effect from October 26.