Shoppers Stop Limited (SSL) has reported earnings for the first quarter ended June 30, 2018 with a significant improvement in EBITDA and PBT/PAT.
During the quarter under review, Shoppers Stop increased the EBITDA by 37% from Rs.35.44 crores to Rs.48.63 crores, primarily due to reduction in operating expenses. PAT grew by 363% from a loss of Rs.3.72 crores to a Profit of Rs.9.77 crores. (without including comprehensive income)
The revenue growth would have been ideally flat or marginally positive, however due to the reclassification post implementation of Accounting Standard 115, significant increase in tax rates in Q1 FY19 (GST regime) vs Q1 FY18 (VAT regime) and pre-GST sale in Q1 2017, Revenue declined by 12%. They are strictly not comparable.
