Shoppers Stop Reports Net Loss Of Rs 21.80 Crore

Shopper stops a retail chain reported net loss of Rs 21.80 crore for the second quarter ended September 30. Company had posted a net profit of RS 10.68 crore last year.

Total income stood at Rs 843.65 crore during the quarter under review, down 12.30 per cent as against Rs 962.01 crore in the year-ago period, Shoppers Stop said in a BSE filing. Total expenses were down 12.79 per cent to Rs 824.15 crore as against Rs 945.03 crore.

Shoppers Stop Customer Care Associate and Managing Director Govind Shrikhande said” Second quarter was relatively subdued owning to stock and supply challenges on account of GST implementation. However, teething issues have been resolved and we are well on track for a strong festive quarter. Our partnership with Amazon India will be significant boost to our existing online play. Our exit from Nuance Group and HyperCity will further sharpen our focus on core departmental store business”.

Company also reported exceptional loss of Rs 33.78 crore due to impairment in value of investments in its subsidiary HyperCity Retail.

During the quarter, Shoppers Stop's board approved issuance of 43.95 lakh equity shares of Rs 5 each at price of Rs 407.78 per piece to Amazon.com NV Investment Holdings LLC for Rs 179.25 crore on preferential basis. In a separate filing, company said its independent director Gareth Thomas has resigned with effect from October 26.