Spencer's Retail Reports Flat Q3 FY24-25 Results Amid Operational Improvements and Rising Debt Concerns

Jan 16 2025 05:46 PM IST
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Spencer's Retail reported its third-quarter financial results for FY24-25, highlighting a flat performance. Operating profit reached Rs 11.81 crore, the highest in five quarters, while the operating profit margin improved. However, the company faced challenges with a significant loss before tax and declining net sales, indicating ongoing market difficulties.
Spencer's Retail has released its financial results for the third quarter of FY24-25, showcasing a flat performance relative to previous periods. The company's operating profit (PBDIT) reached Rs 11.81 crore, marking the highest figure in the last five quarters, while the operating profit margin improved to 2.28%, suggesting enhanced operational efficiency.

Despite these operational advancements, Spencer's Retail faces notable challenges. The profit before tax (PBT) was reported at Rs -50.47 crore, representing the highest negative figure in the last five quarters, although there are indications of a potential near-term trend improvement. The company's debt-equity ratio has increased to -2.81 times, which points to a growing reliance on borrowing for financing operations, potentially signaling liquidity concerns.

Furthermore, net sales for the quarter totaled Rs 516.97 crore, the lowest in the last five quarters, reflecting an 8.8% decline compared to the average net sales of Rs 566.79 crore from the preceding four quarters. Overall, while there are signs of operational improvement, the financial results underscore significant challenges for Spencer's Retail in the current market landscape.

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