Shoppers Stop, one of India’s leading departmental stores offering apparel and accessories, has reported a sharp 54 percent year-on-year decline in its net profit during the third quarter of fiscal year 2012-13 that ended on December 31, 2012.
The K Raheja Corp. group firm, which operates specialty stores such as Mothercare in addition to large-format department stores, registered a profit-after-tax of Rs. 43.2 million in October-December 2012 quarter, as against Rs. 93.3 million grossed in the corresponding period of previous fiscal.
The company attributed the decline in net profit to increased operating expenses, finance charges and depreciation. While the firm’s finance charges surged by 61 percent year-on-year during the quarter, its operating expenses rose by 19 percent year-on-year.
Shoppers Stop’s net sales increased 15 percent year-on-year during the three-month period to Rs. 8.938 billion, as against the Rs. 7.781 billion sales achieved during the same period of last fiscal.