Financial AspectOn a consolidated basis, the company reported a 64% rise in net sales at Rs.5840.54 crore, and despite a 66% rise in operating expense, the company managed to show a 43% rise in EBITDA at Rs.326.49 crore. But after this, it has been all downhill. Interest outgo rose 123% and depreciation was up 145%, with the company posting a loss before tax of Rs.15.30 crore as against a PBT of Rs.79.82 crore in June 07’ year ending. It posted a net loss of Rs.28.39 crore as against a net profit of Rs.79.90 crore last fiscal. This net loss would have been much higher at Rs.62.59 crore but for prior period adjustments added back at Rs.1.04 crore, goodwill written back at Rs.3.39 crore and the profit which it earned from sale of subsidiary at Rs.29.77 crore.
Then the company added back the minority interest earnings to the tune of Rs.51.22 crore and this catapulted the company back into the black, It ended 2007-08 with a net profit of Rs.21.93 crore , down 38% when compared with net profit of Rs.35.54 crore in 2006-07.
Apart from all these adjustments, during the fourth quarter ended 30th June 2008, it changed its method of valuation of finished goods from "Retail Price less Mark up" to "At lower of cost and Net Realizable Value". Consequent to this change, the value of inventories was lower by Rs.74.37 crore. The same has been adjusted (net of tax of Rs.25.28 crore) against brought forward balance in Profit & Loss Account.
No doubt the sales have increased but the bottomlines have shown pressure. Its retail space has increased from around 7.30 million square feet to around 7.90 million square feet during the quarter. And its aim is to increase it to 15-16 million sq-ft in the current fiscal from 11 million sq.ft last fiscal.
Regarding Stock
The stock has a low at Rs.283 and currently it is hovering in the range of Rs.300-305. The great Indian retail bazaar is undergoing a change but Pantaloon has the advantage of being amongst the first in the sector and is today too big.This is a good stock to invest in.