Any current/future new fundraising through debt or equity?

No new debt is foreseen for expansion; the company expects to fund growth through internal accruals (Page 19, Karuna). The company maintains a lean balance sheet with negligible net debt of around INR30 crores (Page 7, Karuna). There is an exploration of partnerships where partners may partly or fully fund store capex, but no definitive decision yet; an update is expected in 3-4 months (Page 15, Karuna). Overall, capital allocation is prudent, with no mention of raising equity or significant external fundraising planned in the near term.

Any current/future capex/capital investment/strategic investment?

Annual capex expected to be around INR160-200 crores, similar to the current year. Capex includes new store additions, store renovations, beauty stores, and digital/omnichannel investments. Capex per square foot for new stores has reduced by 35%, now around INR2,200-2,300 (higher if beauty section included). Exploring co-funding models for capex with partners/landlords to reduce balance sheet impact. Expansion focus continues with over 10 department stores and 12 beauty stores added recently, funded through internal accruals without requiring debt. Capital allocation remains prudent, aiming to

Future growth expectations in sales/revenue/volumes?

Targeting mid-double-digit overall sales growth including new stores for the coming years. Expecting mid-single-digit same-store sales (SSD) growth annually. Plan to open 10-12 new department stores every year, contributing to revenue expansion. Private brand sales, currently 14% of total, expected to grow faster than overall sales, driving margins. Growth engines identified as private brands, beauty segment, and omnichannel expansion. Beauty segment is poised to grow above company average, supported by SS Beauty and boutique stores with exclusive partners. Anticipate continued increase in tot

Future growth expectations in earnings/operating earnings/profits/EPS?

Targeting mid-double-digit overall revenue growth including new stores; mid-single-digit same-store sales growth (SSG) expected going forward. Strategic growth drivers: private brands, beauty segment expansion, and omnichannel development. Expected annual addition of 10-12 new department stores to support growth. EBITDA and profits expected to improve with sustainable gross margin expansion (currently 41%-43%) and improved revenue mix. Capital allocation remains prudent with no anticipated debt for expansion; funded through internal accruals. Return on capital employed (ROCE) expecte

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Shoppers Stop LtdQ1 FY23Retailing

Shoppers Stop Ltd Q1 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹366Market Cap: ₹3.6K CrSector: Retailing

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Targeting mid-double-digit overall sales growth including new stores for the coming years.
→Expecting mid-single-digit same-store sales (SSD) growth annually.
→Plan to open 10-12 new department stores every year, contributing to revenue expansion.
→Private brand sales, currently 14% of total, expected to grow faster than overall sales, driving margins.
→Growth engines identified as private brands, beauty segment, and omnichannel expansion.
→Beauty segment is poised to grow above company average, supported by SS Beauty and boutique stores with exclusive partners.
→Anticipate continued increase in total bills and average transaction value (ATV) due to premiumization and product mix shift.
→Doubling revenues expected by FY'26 from FY'20 base, supported by like-for-like growth and new store additions.

Margin guidance

Category 3

→Targeting mid-double-digit overall revenue growth including new stores; mid-single-digit same-store sales growth (SSG) expected going forward.
→Strategic growth drivers: private brands, beauty segment expansion, and omnichannel development.
→Expected annual addition of 10-12 new department stores to support growth.
→EBITDA and profits expected to improve with sustainable gross margin expansion (currently 41%-43%) and improved revenue mix.
→Capital allocation remains prudent with no anticipated debt for expansion; funded through internal accruals.
→Return on capital employed (ROCE) expected between 20%-25% over next 1-2 years.
→Gross margin improvements partly due to vendor arrangement changes, contributing an estimated 30-40 basis points from next fiscal year onward.
→Robust loyalty program and enhanced customer engagement to drive high-margin growth segments.

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Fundraise plans

→No new debt is foreseen for expansion; the company expects to fund growth through internal accruals (Page 19, Karuna).
→The company maintains a lean balance sheet with negligible net debt of around INR30 crores (Page 7, Karuna).
→There is an exploration of partnerships where partners may partly or fully fund store capex, but no definitive decision yet; an update is expected in 3-4 months (Page 15, Karuna).
→Overall, capital allocation is prudent, with no mention of raising equity or significant external fundraising planned in the near term.

Order book

The document "2994.pdf" does not provide specific information regarding the current or expected order book or pending orders for Shoppers Stop Limited. The discussion primarily revolves around: - Sales performance and growth in average transaction value (ATV) and average selling price (ASP). - Inventory levels and their composition, especially related to private brands. - Operational aspects such as customer footfalls, store expansions, and capital expenditure. - Supply chain challenges, particularly in the beauty segment. - Strategic initiatives including omnichannel presence and customer loyalty programs. No explicit data on pending orders or order book status is disclosed in the text.

Capex plans

Yes

→Annual capex expected to be around INR160-200 crores, similar to the current year.
→Capex includes new store additions, store renovations, beauty stores, and digital/omnichannel investments.
→Capex per square foot for new stores has reduced by 35%, now around INR2,200-2,300 (higher if beauty section included).
→Exploring co-funding models for capex with partners/landlords to reduce balance sheet impact.
→Expansion focus continues with over 10 department stores and 12 beauty stores added recently, funded through internal accruals without requiring debt.
→Capital allocation remains prudent, aiming to improve return on capital employed (20-25%) and maintain a lean balance sheet.
→Investments also in digital channels and omnichannel experience (including SS Beauty platform and app).
→Store payback period ranges from 2 to 2.5 years with strong growth expected from year two onwards.

How does Shoppers Stop Ltd rank vs peers in Retailing?

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1Shoppers Stop Ltd

Rev 3Mar 3

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