Retail in Asia

In Shops

India’s Pantaloon posts 76pc drop in profit, to hive off Home Town

High interest costs, lease rents and higher depreciation expenses brought down net profit of Pantaloon Retail (India) Ltd’s core retail business by 76 percent in the quarter ended March 2012 to INR12.03 crore (INR120.3 million, USD2.24m), compared with INR50.54 crore in the year-ago period.

The country’s largest retailer’s consolidated net profit declined 98 percent in the March quarter to INR6 lakh (INR600,000, USD111,65) against INR4 crore in the corresponding quarter of 2010-11. The company’s financial year ends in June. The core retail business includes all the retail business of the company and its wholly-owned subsidiaries in value, lifestyle and home retailing segments.

Meanwhile, Pantaloon said it was making Home Town, a one-stop destination for home-making solutions, a separate subsidiary of the company.