Spencer's Retail Q1 net loss widens to Rs 33.63 cr

NEW DELHI: RP-Sanjiv Goenka Group arm Spencer's Retail Ltd on Thursday said its consolidated net loss widened to Rs 33.63 crore for the first quarter ended June 30. The company had posted a net loss of Rs 23.55 crore in the April-June period a year ago, Spencer's Retail said in a regulatory filing.

Its revenue from operations increased 12.5 per cent to Rs 621 crore during the quarter under review against Rs 552 crore in the year-ago period.

The company's total expenses rose 12.47 per cent to Rs 673.03 crore in Q1 FY 2022-23 compared to Rs 598.37 crore a year earlier.

Spencer's operates 155 stores with a total trading area of 13.89 lakh square feet as of Jun 30, 2022.

According to the company, its current liabilities, including current borrowings, exceed current assets by Rs 403.73 crore.

''The Group has access to unutilised credit lines with its bankers and also additional capital from its promoters, if and when required. The Group also has other investments, which can be liquidated, if and when required,'' said Spencer's Retail. Over the business of Nature Basket, which it has acquired from Godrej Industries, Spencer's Retail said it has reported a standalone turnover of Rs 67 crore. Natures Basket operates 35 stores with a total trading area of 1.07 lakh square feet as of Jun 30, 2022. ''Natures Basket continues to be EBITDA positive on a quarter-on-quarter basis, driven by sustained higher margin and cost efficiencies. We have opened 2 new Spencer's stores during the year,'' it said.

''Our business has grown by 15 per cent quarter on quarter basis backed by improved consumer footfalls and robust omnichannel presence. Our Gross margins have also improved by 53 bps on a quarter-on-quarter basis with both Food & Non-Food delivering better,'' Spencer's Retail Sector Head Shashwat Goenka said.

It has surpassed the non-food business mix of pe-pandemic levels and has touched the highest ever non-food mix in the last 3 years, he added.

On the outlook, Goenka said: ''Improved consumer sentiments and with ease of COVID restrictions coupled with pent-up demand and strong Festive season, we are confident of our near term business prospects''.

Shares of Spencer's Retail Ltd on Thursday afternoon were trading at Rs 74.20 on BSE, down 0.60 per cent from the previous close.