Conference Call with Shoppers Stop Management and Analysts on Q2FY22 Performance and Outlook. Listen to the full earnings transcript.
Highlights: Revenue ( Gross) Rs.709 Crs +117% and EBITDA Rs.138 Crs + 387% vs FY21 The Company witnessed strong recovery in demand after the second wave across the formats, with sales moving swiftly close to pre-pandemic levels in August and September. All the stores are now fully operational, with overall store operation days at 87% for the quarter. This led to sales growth of 117% and EBITDA growth by 387%. There has been progressive improvement in August and September with Sales growth of 140% and 66% respectively. Our festive sales are at pre-covid levels, with an impressive growth from our stronghold East. Overall Performance, Mr. Venu Nair, MD and CEO commented "The demand postponement triggered by the second wave of the pandemic witnessed a strong comeback in Q2. While July was muted with multiple lockdowns and Maharashtra completely closed, August and September witnessed a sharp recovery. Our sales more than doubled and EBITDA quadrupled against last year. As we go to press, our festive sales have been extremely reassuring. Our sales recovered more than 100% in East, followed by North. Our performance has been very good across all segments1 with Omni, Private and Beauty outperforming. We have witnessed a strong volume growth of 59% (overall value growth of 90%), primarily led by Apparels. Omni Channel grew by 103% and needless to say I am very delighted with our performance. Omni Channel contribution sustained at 8%, despite stores opening in Q2. This reflects the strong trust amongst digitally savvy young customers with Shoppers Stop. Our investments continue to be higher In Omni, as we believe it enhances availability, drive sales & traffic, and integrate digital touchpoints. As on date we have invested more than Rs.20 Crs and we plan to invest another Rs.20 Crs in the next 6 - 8 months, primarily in technology, such as Site Personalization, Marketing Automation, Hyperlocal, Uni-commerce Dropship and more importantly in Jarvis, which is a fantastic analytical tool for customer personalization and propensity forecasting. The Company continues to conserve cash and maintain sufficient liquidity. We had saved costs of Rs.62 Crs vs FY20. Our Inventory reduced by Rs.82 Crs against last year. Our net debt is Rs.62 Crs as of September 30, 2021 as against Rs.196 Crs as at September 30 2020. I am happy to say that 98% of eligible employees and associates are now fully vaccinated." Result PDF