Delhi-based discount retailer Vishal Retail has posted a net profit of 21.54 million in the third quarter ended December 31. The latest figures witness a dip of 86 per cent from the corresponding previous year’s figures of Rs 155.55 million.
The net profit till the end of third quarter registered a slump too. The company has posted Rs 202.412 million profit in the first nine months of FY 08-09, said the company in a disclosure to Bombay Stock Exchange. The figures for corresponding period last year stayed at Rs 302.842 million. However, the company marked a gross sales figure at Rs 3,732.929 million which is up from corresponding Q3 figures of FY 07-08 which is Rs 3,017.289 million.
Adding further, the company said that as of December 31, 2008, 181 Vishal Retail stores are operational in 108 cities across the country covering a total retail space of 2.881 million square feet.
Talking earlier to IndiaRetailing, Ambeek Khemka, president, Vishal Retail, commenting on franchisee mode of expansion, said, “In present market scenario, franchisee would be the pre-models to look on during this economic slowdown as it is full of opportunities. It is a sure short formula which always brings success. Franchisee involves security and management. It is not only a method to expand but is also an opportunity of the brand to reach to everyone. Certainly if there are opportunities we will be looking out for it.”
Moreover, the company will also ask banks to roll over about 1.53 billion rupees of debt repayments coming up in the March quarter. “There are some repayments coming up in March. We would have them rolled across,” Manmohan Agarwal, chief executive for corporate affairs, told investors on a conference call, adding the amount was about 20 per cent of Vishal Retail’s net debt of 7.65 billion rupees.
— Shailesh Shah (With inputs from Akansha Srivastava)