Shares of Shoppers Stop defied the broader market trend and surged over 17 per cent in morning trade on Friday after the retail chain posted strong earnings for the December 2021 quarter.
On the BSE, the stock opened at Rs 390.70, then jumped 17.58 per cent and touched its 52-week high of Rs 425 in initial deals. It was later trading at Rs 402.75, up 11.43 per cent.
On the NSE, the stock followed a similar pattern, it opened at Rs 394.30, registering a gain of 17.56 per cent over its last close. It was later trading at Rs 401.05, up 10.94 per cent.
On Thursday, Shoppers Stop Ltd reported a consolidated net profit of Rs 77.32 crore for the third quarter ended December 2021. The company had posted a net loss of Rs 25.11 crore in the October-December quarter a year ago.
Its revenue from operations was up 33.82 per cent at Rs 958.11 crore during the period under review, against Rs 715.97 crore in the corresponding quarter of the previous fiscal.
According to the company, it has returned to ''profitability” with a zero net debt.
Shoppers Stop total expenses were at Rs 905.14 crore, up 16.23 per cent in Q3 FY 2021-22, compared to Rs 778.78 crore.
''We are witnessing positive signs from a strategy that we initiated in the last 2 years. As the fashion and beauty retail is seeing encouraging early trends from the Wardrobe Reboot, we are rightly poised to capture the pent-up demand,'' Shoppers Stop MD & CEO Venu Nair said.
(With inputs from PTI)