Kishore Biyani-led Pantaloon Retail India Ltd, which controls the Big Bazaar retail chain, has recorded an increase of 31.3 per cent in its net sales for the year ended June 30, but its net profit fell to half its levels from a year earlier as interest costs surged.
The company told stock exchanges on Monday after its board meeting at the weekend that consolidated net sales shot up to Rs 7,669 crore in 2008-09 from Rs 5,840.5 crore in the previous year while net profit after minority interest fell to Rs 10 crore from Rs 21.93 crore.
Profit from operations before other income and interest increased from Rs 185.71 crore to Rs 305.59 crore. A higher “other income” at Rs 95.8 crore, up from Rs.55.7 crore, also aided profits. However, interest expenses shot up to Rs 418.5 crore from Rs 223.6 crore –up 87 per cent.
That pulled the profitability down and led to an overall net loss before tax of Rs 17.19 crore. Last year, the company had registered a profit before tax of Rs 17.86 crore.
Net loss for the year fell from Rs 29.4 crore for the year ended 30 June 2008 to Rs 7.25 crore.
The company did not explain other details concerning “other income” and tax liabilities concerned with the figures.