Investor Presentation is out for May..Download it from pantaloon site..
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Pantaloon Retail reported a lacklustre sales growth in May 2007, with the same-store value retailing segment reporting 1.55 per cent y-o-y growth, while the lifestyle segment grew 1.52 per cent.
Analysts point out to a high base effect in the corresponding period of the previous year, which led to slower same-store sales growth in May 2007.
Meanwhile, Pantaloon Retail’s operating margins in the March 2007 quarter were adversely affected owing to surging sales in the low-margin value retailing segment.
As a result, operating profit grew 56.6 per cent y-o-y to Rs 60.28 crore in the March 2007 quarter compared with 89.1 per cent growth in net sales to Rs 861.04 crore. Sales in the value retailing segment expanded 87.5 per cent y-o-y in the last quarter and accounted for 64.85 per cent of its net sales.
As a result, operating profit margin fell 145 basis points y-o-y to 7 per cent in the last quarter. Operating margin declined by 30 basis points even at competitor Shoppers’ Stop to 7.1 per cent in the last quarter.
Pantaloon’s total retail space amounted to 4.7 million square feet at the end of the March 2007 quarter, which is expected to reach 5.6 million square feet by the end of the June 2007 quarter. At Rs 440, the stock trades at about 36 times estimated June 2008 earnings as investor interest in the retail sector is still strong. (BS)
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