The company, for third quarter ended 30th Sept 2012 posted a disappointing performance, YoY, the numbers look good due to base effect. Net sales was up 14% at Rs.423.55 crore but QoQ, it was down 16%. Net profit was at Rs.32 crore, which YoY was up 7% and down by a huge 40% on a QoQ. OPM was down sharply at 14.14% (QoQ) from 17.74% and NPM was down from 10.4% at 7.47%. Operating costs were high but the highest rise was on rentals, up 43% YoY and 4% on a QoQ. The company stated that changes in the retail environment with low consumer sentiments and lower customer traffic for key retailers pulled down the performance.

The company, like all others, is hoping that the festive demand will kick up a demand it will be over to get over the current lull. At the same time, it is planning on aggressive expansions wherein it has targeted opening of 100 stores per year for two years. This quarter it opened 33 new stores. It has earmarked a capex of Rs.100 crore for the year, of which it has already spent substantially on expansion of the retail stores, renovation, relocation and some on manufacturing. A debt free company, promoters hold 52.01% stake, institutions hold 31.79%. Its net profit for 9MCY12 stands at Rs.121, which is 33% lower on a YoY and with just one more quarter to go, unless it proves to be extraordinarily good or gets some windfall gain, it will be tough to surpass the CY2011 net profit of Rs.226 crore.