Pantaloon Retail Q3 net seen up 21% at Rs 38.4 cr

According to CNBC-TV18 estimates, its Q3 net profit is seen going up 21% at Rs 38.4 crore versus Rs 31.7 crore.

 

Its net sales are expected to go up 37% at Rs 1,688 crore versus Rs 1,226.8 crore. OPM is seen going up by 80 bps at 9.7% versus 8.9%

 

Factors to watch

• Pantaloon continues retail roll out at brisk pace – total retail space now upwards of 12m sq. ft.
• Standalone retail space up 33.5% YoY to 8.6mnsqft
• 3 Big Bazaars (including cut-in Food Bazaars) and 1 Pantaloons department store were opened in Q3
• Sales growth to be driven by these new store openings and the discount sales during the quarter
• Efforts to manage operating costs, especially renegotiation of peak rentals and easing cost pressures will mean an expansion in margins
• PAT growth lower – To be impacted by steep increase in interest cost and depreciation
• Need to watch out for: Sales and same store sales growth in December, and increase in inventory during the quarter