Shoppers Stop rallies 20% after upbeat Q2 results
The retail chain reported narrowing of its consolidated net loss to Rs 3.68 crore for the September quarter, helped by a comeback in sales. The company had posted a net loss of Rs 97.70 crore in the July-September period a year ago.
Following the update, shares of Shoppers Stop soared as much as 20 per cent to Rs 335.85, just shy of the upper circuit limit. However, the scrip pared some gains to trade at Rs 323.80 at 10 am.
BSE Sensex was trading at 61,231.56, 28.4 points or 0.05 per cent lower at the same time. The scrip had settled at Rs 280.55 on Wednesday.
Revenue from operations rose over two-fold to Rs 642.07 crore from Rs 296.98 crore in the corresponding quarter of the previous fiscal.
Shares of Shoppers Stop have soared as much as 35 per cent in the last one month, whereas the counter has zoomed over 85 per cent in the last one year.
Shoppers Stop MD & CEO Venu Nair said, “The demand postponement triggered by the second wave of the pandemic witnessed a strong comeback in Q2.”
The festive sales have been extremely reassuring, he said, adding sales have recovered more than 100 per cent in the east, followed by north. During the July-September quarter, sales from omni-channel grew by 103 per cent.