Koutons Retail India Ltd. - Q4FY10 Result Update

Company Background
Koutons Retail India Ltd (KRIL) is the largest retailer of readymade and fashion wear apparels for men, women and children in India with its own manufacturing facilities in North India. The company has a pan India presence through ~1,400 Exclusive Brand Outlets (EBO's) in five different formats. KRIL currently has 1,360 stores in 500 cities of India, covering a total retail space of 13,23,020 sq.ft.
Result highlights KRIL Q4FY10 revenue increased marginally by 1.9% to INR 3,860Mn on YoY basis. For full year FY10, revenue increased by 13.5% to INR 12,054Mn against INR 10,623Mn in FY09. During this period, management focused on introduction of family stores concept, which had benefited company in terms of increased revenue and customer base.

Q4FY10 EBITDA decreased by ~22% on YoY basis to INR 736Mn, while the operating profit (EBITDA) for full year FY10 grew by ~4% to INR 2,328Mn on YoY basis against INR 2,238Mn during FY09.

PAT for the quarter under review decreased by ~12% to INR 314Mn on YoY basis, whereas the consolidated Net Profit for FY10 increased by 3.5% to INR 823Mn against INR 796Mn during FY09.

Going forward, KRIL is planning to convert its existing stores to Koutons family stores (KFS) having an average store size of >3,000 sq.ft, by acquiring more space at the existing outlets. This will enable KRIL to increase per sq. ft revenue and offer
more variety to customer within a same store leading to volume growth.