Titan + Pantaloon – What’s in Store this Quarter’s ?

April 8, 2009 · Author: · Category: retail 

Pantaloon Future Group Retail – We expect revenue, operating profit, and adjusted net profit growth of 25%, 43%, and 16% YoY, respectively in F3Q09. Gross margins are expected to drop 100bp YoY on a higher proportion of value retail sales. However, EBITDA margins are likely to improve by 125bp, but a 70% rise in interest cost is likely to limit earnings growth. For January-February 2009, SSG for Value and Life Style Retailing was 4.5% and 8.2%, respectively. PRIL added 0.27mn sf for January and February 2009.

Titan Retail – We expect Titan to deliver revenue, reported operating profit, and reported earnings growth of 11%, -18%, and -35%, respectively, in F4Q09. The decline in reported PAT is accentuated by a lower tax rate for  F4Q08. Watch revenues are expected to decline 5% YoY and margins are expected to come in at 18.5%. On the jewellery front, we expect 20% YoY revenue growth  primarily due to higher gold prices, and look for margins to fall sequentially at 4.3% primarily on higher lease rates.

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