Indian Retail Boom Financial Performance - AceAnalyser Meet/132638_20091119.pdf · Financial...

2

Indian Retail Boom

Shopper’s Stop Limited Retail Group

Financial Performance

3

Indian Retail Height

Retail- Highlights

Source : ICRIER Report 2008

• India moved to the 2nd place in the ATKearney‟s GRDI 2008. (Vietnam is on top)

• India topped the GRDI for 3 consecutiveyears till 2007.

• Indian Retail market caters to the world‟s2nd largest market.

• The total retail market in India is estimatedat $ 322 Bn

• Organized Retail Market is about 4%

• Indian Retail expected to cross US$ 590 Bnby 2011-12.

• Organized retail expected to be 16 % of TotalRetail by 2011.

4%

2007Indian Retail: USD 322 bn

Organised Retail: USD 12.88 bn

16 %

2011-12Indian Retail: USD 590 bn

Organised Retail: USD 94.4 bn 4

5

Opportunity size – Proportion of Organized to Total Retail

Source : Merill Lynch India Retail Report March 2007

Category Penetration

1%

5%

10%

3%

9%

13%

10%

19%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Food & grocery

Textiles &

apparel

Jewelry & w

atches

Consumer durables

Pharmaceutic

als

Home solutions

Books, music &

gifts

Others

Category Penetration

6

Retail Growth

Favourable

Demographics

Rising Consumer

Income Mall Boom

Key Growth Drivers

7

Favourable Demographics

Consumer Component

Indian Consumer (< 35 years) Others (> 35 years)

Working Age

0

0.1

0.2

0.3

0.4

0.5

0.6

Year 2001 2010

Year

Popula

tion

Working age Non-working age

(# source – XX Factor report by Future Group)

The Indian consumer is among the

youngest in the world, with over 65% of

the population below 35 years

Women‟s employment participation grew

to 31% in 2005 from 26% in 2000, Rising

employment of women set to boost GDP

per capita up 5% by 2010 to more than

10% by 2025 #

The proportion of working age population

(20-54 years) is expected to rise from 44%

in 2001 to 50% by 2010.

The propensity to consume is significantly

higher among youngsters than the elderly,

even with same income levels.

8

Real estate Supply

Real Estate :

Mall space has risen in the past few

years and is expected to rise further.

By 2008,there will be 350 malls

aggregating to 117 Mn sq.ft of retail

space. Of this, about a third is coming

up in the National Capital Region

(Delhi) and Mumbai, and the top 7

cities are expected to account for two-

thirds of the new retail space.

Malls in India

0

20

40

60

80

100

120

delh

i

mum

bai

bangalo

re

kolk

atta

hydera

bad

chennai

pune

chandig

arh

ludhia

na

coim

bato

re

cochin

nagpur

Year 2007

Year 2010

9

Burgeoning Consuming Class

The Very rich

The Consuming class

The Climbers

The Aspirants

The Destitute

2001 - 02 2006 - 07

5.2 (30)

75.5 (432)

81.7 (472)

20.2 (117)

16.5 (95)

4.0 (23)

40.8 (230)

13.7 (77)

0.7 (4)

0.9 (5)

URBAN

Figures in Mn: Households (Population) Source: BW Marketing Whitebook & company estimation

7.6 (44)

91.4 (522)

94.7 (488)

17.2 (99)

14.0 (81)

2009 - 10

6.2 (34)

51.7 (293)

13.7 (77)

0.5 (3)

0.6 (4)

2.6 (15)

46.4 (265)

74.4 (429)

33.1 (192)

24.1 (140)

1.9 (11)

26.5 (150)

17.4 (98)

3.9 (22)

2.6 (16)

10

Regulatory and Infrastructure barriers

Multiple Tax Structures

Labor and Other Regulations

Specialist Skills

FDI in retail prohibited, permissions given for

• Cash & Carry Wholesale Trading

• Franchisee / Licensing Agreements

Barriers in Retail Development

11

Shopper’s Stop Limited Retail Group

HypermarketRetails : Foods &Grocery,

Apparel, General Merchandise

LIFESTYLE RETAILING MIXED RETAILING SPECIALITY RETAILING

Retails : Infant wear & Expecting mothers

apparel

OTHER INITIATIVES

Home StoreRetails :Furnishing, Furniture, Lighting

& Kitchen equipments

Airport retailingRetails : Duty Free,

Duty paid merchandise

Amusement & Gaming Centre

Group Retail Brand Architecture

SMALL FORMATS

Retails : Make up

Cosmetics

Concept Store Retails : Beauty, Jewellery &

AccessoriesBooks & Music store

Department StoresRetails : Apparel &

Non apparel

Retails : Make up

Cosmetics

Food & Grocery

(16%)

Apparel &

Fashion Accessories

(7%)

Home décor &Consumer Durables

(7%)

Entertainment &

Leisure

(9%)

Personal Care

(3%)

MALL, HIGH STREET AND

NEIGBOURHOOD STORES

AIRPORTRETAILING

INTERNET

Group Retail Brand Architecture

58% of wallet share comprises of Savings, Household Running expenses, Transport, Communication, Education, Loan servicing, Celebrations, HealthGroup caters to 42% of the Wallet Share of the Nupscale Customer (NRS), which

have an average annual income of Rs. 3.67 lacs, and comprises 2.3% of urban population

SOURCE: Images AC Neilsen study on The Indian Wallet & Brand share. 2007.

14

We are among the Pioneers in

setting up

a nation – wide chain

of Large Format stores in India

with a

Professional Management

Department Store Group – Shopper’s Stop Limited

GROUP CORPORATE STRUCTURE

15

16

Pioneers

First to create a store Brand.

First Retail Loyalty Program.

First co-branded credit card in the country in retail.

First to use the state of the art retail ERP- JDA.

First retailer to go to B-schools for recruiting fresh talent.

First to take graduates for front line sales staff.

First Indian entry in the prestigious New York Art Directors Guild

awards for the best campaign.

First to venture into Airport Retailing in a JV with The Nuance Group.

First to venture into Catalogue Retailing with The Home Retail Group.

Our training program created for the front end staff for their training

& growth titled Baby Kangaroo is recognized as one of the topInnovative HR practices by Delhi Management Association withErehwon Innovation Consulting in Nov, 06.

17

Global Brands

• Introduced International brands which the new Indian aspires to own.

* French Connection, CK Jeans, GAS, ESPRIT, Tommy Hilfiger in apparel segment.

* Chanel, Lancome, MAC in cosmetics.

* CK, Armani, Gucci in sun glasses

* CK, Boss in watches

http://spandhan.shoppersstop.com:8082/Rajouri Pictures/002.jpg

18

Communication

19

Communication

20

Supply Chain

4 technology led Dedicated Distribution Centers, covering approx.300,000 sq ft, supply merchandise to all stores across the country

We have no storage back area in any of our stores.

Distribution Center Management is outsourced to and managedindependently by regional service providers

Regional Distribution Centers connected online to the central systems.

Our partners have an online access to their sales at our stores through BConnect B.

21

Systems

First retailer in India to implement the state-of-the-art ERP JDA

• Auto Purchase order upon drop in predetermined minimum levels

• Auto Replenishment (E3)

• Arthur Planning (for forecasting)

• Warehouse Management System

• Perpetual Inventory Control System

• Intactix space and floor planning system

B2B with vendors

• Over 1000 partners connected online

Oracle Financials for finance & accounting

People Soft HRMS for our HR requirements

B2C online shopping portal

• Online retailing solution from Novator – Canada

Netezza Data warehouse with SAS analytical tools

• First retailer in India to display best in class analytics solutions

22

Complete Integration

AI

M

MMS

Assortment planning

Arthur Planning

PerformanceAnalysis

WINDSS

Option Management

Data

Warehouse

B2B Partnership for

progress

SAS

Analytics

Warehouse

Management

CRM

Oracle

Finance

Data

Server

Oracle

23

Strong value system

Absence of Hierarchy

Transparent and caring (Parichay / Outbound trainings & Meets)

Employees are recognized and rewarded ( Hadh Se Aage ,Baby

Kangaroo development programme & Jo Jeeta Wo Sikander )

Profit Linked reward scheme & ESOP

IGDS – retail learning's shared

5 days week and Flexible work hours

Space for learning, empowerment and decision – making

Life Cycle & E-Learning for associates

User friendly Interface adopting Peoplesoft

Knowledge Enhancement-RAI–IGNOU(BBA Course for associates)

Human Resource Policies

24

Corporate Governance

• Independent Directors on the Board of the company.

• Professionally managed with ownership and management clearly demarcated.

• Standard Operating Procedures (SOPs) forall functions, which are subject to audit andare continuously improved upon to obtainthe best results.

• Internal Audit is done by Ernst & Youngand statutory audit by Deloitte Haskins &Sells.

• High level of disclosure in our AnnualReports

• 95% of vendor accounts reconciled.

• Have an online Disaster Recovery System

• The Institute of Chartered Accountants ofIndia (ICAI) rated our Annual Report to bethe Best Annual Report undermanufacturing & trading category for theyear 2005 - 06

Board of Directors

C L Raheja - ChairmanRavi RahejaNeel Raheja

Nitin SanghaviGulu Mirchandani

Deepak GhaisasShahzaad Dalal

Nirvik Singh

B S Nagesh – Vice ChairmanGovind Shrikhande – President &

CEO

Satisfaction Index

The Company has appointed CSMM (Customer Satisfaction Measurement and

Management) a part of IMRB (Indian Marketing and Research Bureau) to do an

impartial evaluation of our relationship and expectation with various

stakeholders over the last 5 years. ESOMAR recognized our CSI program as the

only one from ASIA and invited Shoppers‟ Stop to its conference in Dublin

Partner Satisfaction Index (PSI)

This helps the organization understand the expectations of business partners

Customer Satisfaction Index (CSI)

Evaluates parameters of customer satisfaction including mystery shopping

•

Associate Satisfaction Index (ASI)

An annual online survey of associates tracking employee loyalty

(Scores out of 100)

(Scores out of 5)

(Scores out of 5)

25

Year 2007 2008 2009

Scores 4.05 4.07 3.97

August 2006 November 2007 February 2009

63 63 81

Year 2007 2008 2009

Scores 4.00 4.08 3.89

26

Some Snap Shots

27

Push & Shove

Elliza Donatein

Eliza Donatein

Life

Vettorio Fratini

Our Private Brands

28

Life

“Think Green”

• Life : „Brand with a Cause‟.

• A powerful initiative in support of the “Think Green” philosophy.

• Neem seeds packed with every merchandise.

• Target to plant 1.5 lakh Neem plants in next 90 days time.

29

Our Presence

and still expanding…

Existing Store Locations

DC locations

Kolkatta(3)

Delhi(3)

Jaipur

Mumbai

(8) Hyderabad

Bangalore

(2)

Chennai

Gurgaon(1)Ghaziabad (1)

Pune

(2)

Mother careMAC

8

• Presence in 12 Cities

– Shoppers’ Stop 27– Home Stop 4– Mother Care 22 [13]– Mac & Clinique 10– Estee Lauder 2– Airport 2 – Crossword 29 [7]

• -- Arcelia 2 • Total Area 1,877,503 Sq.ft.

• Figures in brackets represent shop in shop

Lucknow

Ahmedabad

Baroda

Arcelia

Noida

Crossword

30

Store Area as on 1st April,09 Chargeable Area (Sq.ft.)

Shoppers Stop 1,547,947

Speciality Stores 2,73,887

Addition During the year

• Shoppers Stop Addition 62,277

• Shoppers Stop (Right sizing) (7,850)

• Specialty Stores Additions 5,409

• Specialty Closure (5,170)

• Specialty (Correction) 1,003

• ____________

• Store Area as on 30th Sep,09 1,877,503

==========

Space ramp-up (Sq. ft.)

Existing Stores of Shoppers Stop Ltd.

1.2 mn

Sq

fts.

1.6 mn 1.7 mn

1.7 mn 1.8 mn 1.9 mn 1.9 mn

Shoppers Stop – Cyberabad

Opening Date : 14th Oct 2009

Chargeable Area : 96119 sq.ft

31

32

Home Stop - Vashi, Navi Mumbai

Opening Date : 3rd December, 2008

Chargeable Area: 17,195 Sq. Ft.

33

Hypercity – Hyderabad

Hypercity launched its 4th store at Hyderabad on 1st August 2009

Chargeable Area - 173708Sq ft

MAC - GVK, Hyderabad

MAC was launched at GVK, Hyderabad on 29th May 2009 34

35

Clinique – Inorbit Malad

The first Clinique SIS in SSL stores opened on December 23rd, 2008

Estee Lauder – Select Saket, Delhi

36Estee Lauder was launched at Select Saket on 24th June 2009

37

Crossword – Inorbit, Cyberabad

Opening Date : 14th October 2009

Chargeable Area : 2890 Sq. Ft.

38

Timezone – Vashi

Our Loyalty Program

First Citizen member base is 14.51 lacs @

The contribution is – 70% with GV and 73%

without GV. This is the one of the largest

Loyalty program in the country.( @ details as on 30th September, 2009 )

“Second best in the Consumer Loyalty Survey” in the retail sector by CSMM in April’07

Co-branded Credit & Debit Cards

with Citibank NA

Having total count of 225375

members#( # forming part of the Loyalty program)

39

• Mr. B.S. Nagesh, Customer Care Associate & Managing Director was inductedinto the World Retail Hall of Fame at the World Retail Congress Award 08.(For more information visit www.worldretailcongress.com)

• Shoppers Stop won the “Emerging Market Retailer of the year at the WorldRetail Congress Awards 08”.Tesco, H&M, and Woolworths SA had won the awards in other categories.

International Recognition

40

Some Industry Honors

Shoppers Stop Won the

- 3 PC Quest Enterprise Awards in April 2009 for various initiatives

- 2 Network Computing EDGE Awards in May 2009

Listing of our Group CTO Mr Arun Gupta in Global CIO 50 by Information Week. Amongst 10 CIOs from India in the list

Hypercity Won the “ Automated Replenishment Software Solution “ Award atNetwork Computing EDGE.

“Department Store of the year” at the Star Retailer Awards in Dec‟08 & Dec 07.

“Most Admired Retailer – Customer Relation Management” to Shoppers Stop atImages Retail forum, Sep‟2008.

Received the following awards from the “ Clothing Manufacturers Association ofIndia”(CMAI) for the year 2007-08 on 9th July‟08:

- Brand of the Year – Ladies Ethnic Wear – STOP

- Golden Scale Trophy – CMAI Special Award to Mr. Nagesh for being theFirst Indian Retailer to be inducted into the World Retail Hall of Fame.

41

42

• Sales Growth:

Shoppers Stop department stores : 10%

All formats : 11%

• LTL Sales Growth:

Shoppers Stop department stores : 2.3%

stores > 5 years : -2.3%

stores < 5 years : 10.5%

• Sales Per Sq.ft. on chargeable area (Built up sq.ft.) :

Shoppers Stop department stores : Rs 2,105 (LY Rs. 2,171)

• Customer entry for Shoppers Stop Departmental stores Increasedby 5.6%

Key Financial Highlights – Q2 2009-10

43

• Sales Growth:

Shoppers Stop department stores : 6%

All formats : 7%

• LTL Sales Growth:

Shoppers Stop department stores : -1.6%

stores > 5 years : -6.6%

stores < 5 years : 7.9%

• Sales Per Sq.ft. on chargeable area (Built up sq.ft.) :

Shoppers Stop department stores : Rs 3,737 (LY Rs. 3,969)

• Customer entry for Shoppers Stop Departmental stores remainedconstant.

Key Financial Highlights – H1-2009-10

44

Operational Indicators – Q2 2009-10

SS Dept Like to Like growth by

SS Dept Sales Per Sq.ft. degrown by 3%.

2.3%

Like To Like Sales

31,51130,810

10,000

17,000

24,000

31,000

38,000

45,000

Q2-08-09 Q2-09-10

Rs.in Lacs

Sales Per Sq.ft. (in Rs.)

21712105

100

700

1300

1900

2500

3100

3700

Q2-08-09 Q2-09-10

45

Operational Indicators – H1-2009-10

SS Dept Sales Per Sq.ft. degrown by 5.9%.

SS Dept Like to Like Sales degrown by 1.6%

Like To Like Sales

56,147 55,247

1,000

31,000

61,000

91,000

H1-08-09 H1-09-10

Rs.in Lacs

Sales Per Sq.ft. (in Rs.)

3969 3737

1000

2500

4000

H1-08-09 H1-09-10

46

Average Selling Price (“ASP”)Transaction Size (Rs.)

Conversion Ratio (%)Customer Entry (figures in lacs.)

Operational Indicators – Q2-2009-10

5.3%11%

3%LTL Volume

5.6%60.74

64.12

5860626466

Q2-08-09 Q2-09-10

27%29%

20%

25%

30%

Q2-08-09 Q2-09-10

1747 1940

4001,0001,6002,200

Q2-08-09 Q2-09-10

736775

700800900

1,000

Q2-08-09 Q2-09-10

LTL stores

degrown by 6.5%

LTL stores

degrown by 2.2%

LTL stores

grown by 12%

7%

47

Average Selling Price (“ASP”)Transaction Size (Rs.)

Conversion Ratio (%)Customer Entry (figures in lacs.)

Operational Indicators –H1-2009-10

4.9%8.4%

6.5%• LTL Volume

0.1%

2.8%

LTL stores

degrown by 12% LTL stores

grown by 1.7%

LTL stores

grown by 9%

118.50

118.60

118

119

119

119

119

H1-08-09 H1-09-10

26%

27%

20%

25%

30%

H1-08-09 H1-09-10

17711921

0

1,000

2,000

H1-08-09 H1-09-10

781 818600700800900

H1-08-09 H1-09-10

48

Merchandise Mix – Q2 2009-10

• Private Label Mix

decreased by 2.3%

Private Label Mix

Merchandise Buying Model

• Private Label Sales

remained constant.

% Mix

5749

3039

13 12

0

25

50

75

100

Q2-08-09 Q2-09-10

Bought Out Consignment/SOR Concession

22.4%

20.1%

10.0%

13.0%

16.0%

19.0%

22.0%

25.0%

Private Label

Q2-08-09

Q2-09-10

49

• Private Label Mix

decreased 2.3%

• Private Label

Sales decreased

by 6%

Private Label Mix

Merchandise Buying Model

% Mix

58 5028

3714 13

0255075

100

H1-08-09 H1-09-10

Bought Out Consignment/SOR Concession

Merchandise Mix – H1-2009-10

21.4%

19.1%

15.0%

17.0%

19.0%

21.0%

23.0%

25.0%

Private Label

H1-08-09

H1-09-10

50

• Non Apparel consists

of Home, Leather,

Watches, Jewellery,

Electronics and

Personal accessories

Children includes Mother Care

Revenue Mix – Q2 2009-10CATEGORY WISE SALES (%)

62.7%

37.3%

61.0%

39.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Apparels Non Apparels

Q2-08-09

Q2-09-10

DIVISION WISE SALES (%)

34.4%

19.3%

9.0%

37.3%

32.4%

19.5%

9.0%

39.0%

-2.0%

3.0%

8.0%

13.0%

18.0%

23.0%

28.0%

33.0%

38.0%

43.0%

48.0%

Mens

Ladies

Childre

ns

Non Appare

ls

Q2-08-09

Q2-09-10

51

• Non Apparel consists

of Home, Leather,

Watches, Jewellery,

Electronics and

Personal accessories

Children includes Mother Care

Revenue Mix – H1-2009-10CATEGORY WISE SALES (%)

61.6%

38.4%

59.6%

40.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Apparels Non Apparels

H1-08-09

H1-09-10

DIVISION WISE SALES (%)

33.9%

19.3%

8.4%

38.4%

31.7%

19.1%

8.8%

40.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Mens

Ladies

Childre

ns

Non Appare

ls

H1-08-09

H1-09-10

52

Operational Efficiency Q2 & H1-2009-10

:Shrinkage as % of Gross Retail Sales

Q2-09-10

0.51%0.30%

0.1%

0.4%

0.7%

1.0%

Q2-08-09 Q2-09-10

H1-2009-10

0.56% 0.37%

0.1%

0.3%

0.6%

0.8%

H1-2008-09 H1-2009-10

(SS Dept. Stores)

53

STAND ALONE FINANCIALS

54

Format wise P&L Q2 -2009-10

Other formats comprise:

• Home Stop

• Crossword

• Mothercare

• MAC, Clinique & Estee Lauder

• Arcelia

• Food & Beverages (only for Q2-2008-09)

• Airport Retail

• Ecom

Rs.in lacs

Q2-2009-10 SS D ept Other F o rmats C o mpany

Revenue 34,451.4 6,434.6 40,886.0

Operating Income 344.4 98.4 442.8

Gross Margin 10,284.2 2,190.0 12,474.1

% to sales 29.9% 34.0% 30.5%

Operating Expenses 8,177.3 2,072.8 10,250.2

% to sales 23.7% 32.2% 25.1%

EBIDTA 2,451.3 215.5 2,666.7

% to sales 7.1% 3.3% 6.5%

Finance Charges 385.6 159.1 544.7

% to sales 1.1% 2.5% 1.3%

Depreciation 424.3 199.7 624.0

% to sales 1.2% 3.1% 1.5%

PBT 1,641.4 (143.3) 1,498.1

% to sales 4.8% -2.2% 3.7%

Q2-2008-09 SS D ept Other F o rmats C o mpany

Revenue 30,647.6 6,137.0 36,784.6


Gross Margin 9,277.9 2,018.3 11,296.2

% to sales 30.3% 32.9% 30.7%


% to sales 28.2% 40.4% 30.2%

EBIDTA 1,022.9 (377.4) 645.5

% to sales 3.3% -6.1% 1.8%


% to sales 1.3% 1.5% 1.4%

Depreciation 952.7 462.7 1,415.4

% to sales 3.1% 7.5% 3.8%

PBT (338.7) (931.8) (1,270.5)

% to sales -1.1% -15.2% -3.5%

55

Financial Summary – Q2 2009-10Shopper’s Stop Ltd. Rs. in lacs

11%

10%

313%

209%

9%

8%

Particular Q2-09-10 Q2-08-09

Retail Turnover 41,328.8 37,248.5

Retail Sales (Before VAT) 40,886.0 36,784.6

Retail Sales (Net of VAT) 39,155.1 35,139.1

Margin on Sales 12,474.1 11,296.2

Margin on Sales % 30.5% 30.7%

Other Retail Operating Income 442.8 463.9

Operating expenses 10,250.2 11,114.6

Operating expenses % 25.1% 30.2%

Operating Profit (EBIDTA) 2,666.7 645.5

Operating Profit (EBIDTA) % 6.5% 1.8%

Finance Charges 544.7 500.6

Depreciation 624.0 1,415.4

PBT 1,498.1 (1,270.5)

PBT % 3.7% -3.5%

Tax 292.0 (168.9)

Profit After Tax 1,206.1 (1,101.6)

Profit After Tax % 2.9% -3.0%

218%

56

Format wise P&L– H1-2009-10

Other formats comprise:

• Home Stop

• Crossword

• Mothercare

• MAC, Clinique & Estee Lauder

• Arcelia

• Food & Beverages ( only for H1-2008-09)

• Airport Retail

• Ecom

Rs.in lacs

H 1-2009-10 SS D ept Other F o rmats C o mpany

Revenue 59,653.1 11,747.7 71,400.8


Gross Margin 18,540.9 4,029.6 22,570.6

% to sales 31.1% 34.3% 31.6%


% to sales 25.5% 33.2% 26.8%

EBIDTA 3,880.6 301.2 4,181.8

% to sales 6.5% 2.6% 5.9%

Finance Charges 745.2 347.6 1,092.7

% to sales 1.2% 3.0% 1.5%

Depreciation 866.4 368.5 1,234.9

% to sales 1.5% 3.1% 1.7%

PBT 2,269.1 (414.8) 1,854.3

% to sales 3.8% -3.5% 2.6%

H 1-2008-09 SS D ept Other F o rmats C o mpany

Revenue 55,639.4 11,098.9 66,738.3


Gross Margin 17,731.6 3,638.4 21,370.0

% to sales 31.9% 32.8% 32.0%


% to sales 30.7% 40.8% 32.4%

EBIDTA 1,409.0 (712.6) 696.4

% to sales 2.5% -6.4% 1.0%


% to sales 1.3% 1.3% 1.3%

Depreciation 1,900.8 871.4 2,772.2

% to sales 3.4% 7.9% 4.2%

PBT (1,209.4) (1,723.2) (2,932.6)

% to sales -2.2% -15.5% -4.4%

57

Financial Summary –H1-2009-10Shopper’s Stop Ltd. Rs. in lacs

7%

6%

500%

155%

28%

12%

Particular H1-2009-10 H1-2008-09




Margin on Sales 22,570.6 21,370.0





Operating Profit (EBIDTA) 4,181.8 696.4

Operating Profit (EBIDTA) % 5.9% 1.0%

Finance Charges 1,092.7 856.8

Depreciation 1,234.9 2,772.2

PBT 1,854.3 (2,932.6)

PBT% 2.6% -4.4%

Tax 395.8 (299.3)

Profit After Tax 1,458.5 (2,633.3)


163%

58

Financial Performance – Q2 2009-10

16

Retail Turnover Gross Cash Margin

2,667.0

645.5

0

500

1,000

1,500

2,000

2,500

3,000

Q2-2008-09 Q2-2009-10

Rs

Lacs

EBIDTA PAT

Gross Margin %

decreased by 20

basis points

41,329.0

37,249.0

35,000

36,000

37,000

38,000

39,000

40,000

41,000

42,000

Q2-2008-09 Q2-2009-10

Rs

Lacs12,474.0

11,296.0

10,600

10,800

11,000

11,200

11,400

11,600

11,800

12,000

12,200

12,400

12,600

Q2-2008-09 Q2-2009-10

Rs

Lacs

1,206.0

(1,102.0)-1,500

-1,000

-500

0

500

1,000

1,500

Q2-2008-09 Q2-2009-10

Rs

Lacs

59

Financial Performance – H1 2009-10

16

Retail Turnover Gross Cash Margin

4,182.0

696.4

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

H1-2008-09 H1-2009-10

Rs

Lacs

EBIDTA PAT

Gross Margin %

decreased by 40

basis points

72,148.0

67,693.0

65,000

66,000

67,000

68,000

69,000

70,000

71,000

72,000

73,000

H1-2008-09 H1-2009-10

Rs

Lacs 22,571.0

21,370.0

20,600

20,800

21,000

21,200

21,400

21,600

21,800

22,000

22,200

22,400

22,600

22,800

H1-2008-09 H1-2009-10

Rs

Lacs

1,459.0

(2,633.0)-3,000

-2,500

-2,000

-1,500

-1,000

-500

0

500

1,000

1,500

2,000

H1-2008-09 H1-2009-10

Rs

Lacs

664

607

400

500

600

700

Q2-08-09 Q2-09-10

0.79

1.01

0.50

0.80

1.10

Q2-08-09 Q2-09-10

GMROF (Rs. per unit of retail space)

GMROI (Rs. inventory) GMROL (Rs. per employee)

365,035

314,702

150,000

250,000

350,000

Q2-08-09 Q2-09-10

28%16%

• Company has improved

GMROI,GMROF & GMROL.

Operational Efficiency Q2 2009-10

SS Dept. Stores

9%

1,204

1,159

1,100

1,120

1,140

1,160

1,180

1,200

1,220

1,240

1,260

H1-2008-09 H1-2009-10

1.44

1.85

1.20

1.70

2.20

2.70

H1-2008-09 H1-2009-10

GMROF (Rs. per unit of retail space)

GMROI (Rs. inventory) GMROL (Rs. per employee)

657,738

581,365

500,000

550,000

600,000

650,000

700,000

H1-2008-09 H1-2009-10

29%

13%

Operational Efficiency H1-2009-10SS Dept. Stores

• Company has improved GMROL,

GMROI & GMROF. 4%

62

CROSSWORD BOOKSTORES LTD.

FINANCIALS

63

Financial Summary – Q2-2009-10

Crossword Book stores Ltd. Rs. in lacs

13%

25%

Particular Q2-09-10 Q2-08-09

Gross Retail Turnover 97.6 99.6

Gross Retail Sales (Before VAT) - -

Gross Retail Sales (Net of VAT) - -

Margin on Sales - -


Operating expenses 37.6 30.7

Operating Profit (EBIDTA) 60.0 68.9

Finance Charges (66) (37)

Depreciation 18 18

Profit Before Tax 107.9 87.7

Tax 20.00 17.25

Profit After Tax 87.88 70.48

23%

64

Financial Summary – H1-2009-10

Crossword Book stores Ltd. Rs. in lacs

36%

24%

Particular H1-09-10 H1-08-09

Retail Turnover 152.4 211.8

Retail Sales (Before VAT)

Retail Sales (Net of VAT)

Margin on Sales


Operating expenses 49.5 50.5

Operating Profit (EBIDTA) 102.8 161.3

Finance Charges (131.8) (42.4)

Depreciation 36.6 36.6

Profit Before Tax 198.0 167.1

Tax 14.9 19.4

Profit After Tax 183.18 147.75

19%

65

CONSOLIDATED

FINANCIALS

66

Consolidated Financial – Q2 2009-10

Rs. in lacs

10%

4678%

148%

150%

10%

22%

Consolidation includes:

• Shoppers Stop Limited

• Crossword Bookstores Ltd.

• Hypercity Retail (India) Ltd.

• Gateway Multichannel Ltd.• Timezone Entertainment Pvt. Ltd.

• Nuance Group (India) Pvt. Ltd.

Particular Q2-2009-10 Q2-2008-09




Margin on Sales 13,132.7 11,983.6





Operating Profit (EBIDTA) 2,535.9 (55.4)

Operating Profit (EBIDTA) % 6.1% -0.1%

Finance Charges 546.1 700.7

Depreciation 790.7 1,651.1

Profit Before Tax 1,199.2 (2,407.1)

Profit Before Tax % 2.9% -6.4%

Tax 323.5 (144.4)

Minority Interest (7.8) 435.8

Profit After Tax 867.9 (1,826.9)


67

Consolidated Financial – H1-2009-10

Rs. in lacs

6%

798%

124%

128%

7%

9%

Particular H1-2009-10 H1-2008-09




Margin on Sales 24,020.7 22,579.5


Other Retail Operating Income 972.3 1,198.6



Operating Profit (EBIDTA) 4,079.6 (584.8)

Operating Profit (EBIDTA) % 5.6% -0.9%

Finance Charges 1,120.7 1,234.7

Depreciation 1,571.3 3,147.6

Profit Before Tax 1,387.6 (4,967.1)

Profit Before Tax % 1.9% -7.3%

Tax 426.6 (266.3)

Minority Interest 8.5 738.1

Profit After Tax 969.5 (3,962.6)


Balance Sheet – Shopper’s Stop Ltd

68

Rs.in Lacs

Key Ratios – Shopper’s Stop Ltd

69

70

Thank You

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