Date:04/11/2007 URL: http://www.thehindubusinessline.com/2007/11/04/stories/2007110451080200.htm

Back Shoppers’ Stop Q2 net falls

Mumbai, Nov. 3

Shoppers’ Stop net was down at Rs 0.42 crore for the second quarter of the current fiscal compared with Rs 7.3 crore for the same period last year. The margins were under pressure due to higher operating expenses following opening of new stores, higher rentals and tripling of power costs, said Mr Govind Srikhande, Customer Care Associate & Chief Executive Officer. The new depreciation methodology, adopted recently, affected the margins, but Mr Srikhande said it would be useful for the long term. “We focus on the EBITDA which is at 5.8, with upturned margins by 100 basis points. However, our operating expenses are down 200 basis points, but it is not a point to worry about,” he added.

The company reported an increase in net turnover of 40 per cent at Rs 275.3 crore against Rs 195.6 crore for the same period last year. —

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