Retail chain Shoppers Stop has reported a net loss of Rs 36.06 crore on standalone basis for the quarter ended March 31, due to one-time provision for investment impairment considered for its subsidiary Hypercity.
The company had posted a net profit of Rs 10.05 crore in January-March quarter a year ago, Shoppers Stop said in a BSE filing.
However, its total income was up 2.96 percent at Rs 916.05 crore during the quarter under review as against Rs 889.70 crore in the corresponding period of the last fiscal.
Shoppers Stop total expenses were also up 2.66 percent at Rs 895.70 crore as against Rs 872.48 crore in the year period.
According to the company: “The accumulated losses of Hypercity Retail (India) Ltd, a subsidiary company, have substantially eroded its networth.”
It further added: “One time provision for investment impairment considered for Hypercity Rs 36 crore and NGIPL Rs 11.8 crore in Q4 FY17.”
For the year ended March 31, 2017, Shoppers Stop’s net loss on consolidated basis widened to Rs 78.37 crore. It had a net loss of Rs 40.28 crore in 2015-16.
However, Shoppers Stop’s net sales for the fiscal was up 10.70 percent to Rs 4,935.20 crore as against Rs 4,457.95 crore in 2015-16.
MD, Shoppers Stop, Govind Shrikhande was quoted by PTI as saying, “This year has been disruptive on several fronts, as we have seen a lot of changes in global politics and domestic economic policies such as demonetization. On the back of these headwinds, FY’17 has seen a softer growth of 9 per cent.”