RP-Sanjiv Goenka owned Spencer’s Retail has reported a standalone net loss of over ₹25 crore for the quarter ending March 31, 2020.
The organised retailer had a net profit of ₹3 crore (approx) in the year-ago-period. The company saw its total income during the period increase by over 6 per cent, year-on-year, to ₹565 crore.
Profit is lower primarily on account of higher costs. Gross margins stood at 21.2 per cent and EBITDA at 4.7 per cent.
In notes to its profit and loss statement, the company has maintained that it has adopted AS 116 – Leases, with effect from April 1, 2019, using the modified retrospective approach. In the results for the current period, operating lease expense, which was identified as other expense in previous periods, is now identified as depreciation expense for right-of-use of asset and finance cost for interest accrued on lease liability. Pursuant to this, loss for the quarter increased by ₹3 crore.
For the full year, Spencer’s reported a net loss of ₹57 crore and a total income of ₹2,403 crore, on a standalone basis.
Nature’s Basket Ltd, which it acquired earlier this fiscal, reported a turnover of ₹86 crore in Q4’20 with a total of 33 stores having a trading area of 0.88 Lakh sq ft as on March 31, 2020
According to Shashwat Goenka, Sector Head, Spencer’s Retail Ltd, for the financial year the company has grown at 8.5 per cent despite headwinds in the retail industry. “We have successfully completed the integration of Nature’s Basket Limited and we will start witnessing synergies in the coming months,” he added.
On the Covid-19 pandemic, the company maintained that with the lockdown in force, the ability of the customers to reach its stores is limited. Hence, it has launched alternate means and platforms for its customers to place orders and purchase their requirements. Online business has also picked up significantly. “Normal operations have resumed first week of June for all verticals,” it maintained.