PANTALOON RETAIL The Big Bazaar company

The Big Bazaar company has had a relatively good second quarter ending. For the period ended 30th September 2008, it has managed to maintain its growth levels.

For Q2FY09, on a YoY, its net sales grew 39% at Rs.1511.21 crore. Operating expenses rose 37% and interest outgo rose 94%. PBT was up 21% at Rs.55.75 crore and PAT was up 22% at Rs.36.18 crore. OPM rose from 8.87% to 10.33% and NPM was up marginally 2.73% to 2.39%, indicating the pressure to sustain the margins.


During the quarter company has opened 18 stores. Its retail space has increased from around 7.90 million square feet to around 8.60 million square feet. A days ago, the company had stated that it plans to have a total retail space of 15-16 million sq ft by March and achieve total revenue of Rs.10,000 crore in the current financial year. But later, Mr. Kishore Biyani stated that ongoing slowdown would leave an impact and the company may miss its three-year revenue target.

Diwali has been good for the company. It posted a YoY 87% growth in Diwali sales, the highest growth rate in three years. The company reported sales of Rs.455.34 crore in October 2008 as against Rs.243 core it posted in October 2007. In lifestyle retailing, which includes its fashion apparel store chain Pantaloons, the company recorded a growth of 66% in October 2008. To beat the slowdown, the company is now focusing on value formats and low-cost models. It has also diversified into small convenience store formats called Big Bazaar Best Deals, rural retail venture Aadhar, and home solutions venture Home Town. But will all this result into higher bottom lines for the company, despite the costs, only time will tell.
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