Shopper's Stop Q2 net up 81%

Mumbai, October 28, 2006: Shopper's Stop Limited, India's leading large format department store chain has reported a 34% increase in Retail turnover at Rs. 2,202 mn in the second quarter ended September 30, 2006 as compared to Rs 1,637 mn for the same period last year.

Gross Margin rose by 46% to Rs. 668 mn for the quarter as compared to Rs. 458 mn posted in the corresponding quarter last year. Profit before tax was up by 89% to Rs. 120 mn from Rs. 63 mn in the corresponding quarter last year. Net Profit rose by 81 % to Rs. 74 mn for the quarter as compared to Rs. 41 mn posted in the corresponding quarter last year.

Meanwhile operating profit (before interest, depreciation and tax) for the quarter ended September 30, 2006 soared by 61 % to Rs 154 mn from Rs. 95 mn in the same period last year.

Mr. B. S. Nagesh, Customer Care Associate, Managing Director of Shopper's Stop Ltd., commenting on the results said "We are delighted to announce that the Company was successful in achieving the targeted revenues and profit in this quarter. During this quarter the company has also added more stores of its specialty businesses of books, Food and Beverages (F & B), maternal and infant care and home".

As on September 30, 2006 total number of stores were as follows: Shoppers' Stop 19, Home Stop 2, Crossword franchisee stores under Shoppers Stop 17 (including 9 Shop-in-shops), Mothercare 7 (including 5 Shop-in-shops) , and F&B outlets 9. Additionally, as on September 30, 2006 Crossword Bookstores Ltd. had 19 franchisee stores.

Shopper's Stop Ltd is also foraying into the entertainment sector by acquiring 45% stake in Time Zone Entertainment Private Limited. Timezone is in the business of operating Family Entertainment Centres (FECs). It has 3 outlets spread across 31,500 Sq. ft at Mumbai, Ahmedabad and Kolkatta.

About Shopper's Stop Ltd

Shopper's Stop Ltd., a pioneer in setting up nation-wide chain of large format departmental stores in India, has been promoted by K Raheja Corp Group (Chandru L. Raheja Group), one of the leading groups in the business of real estate development and hotels in the country. The Company is occupying an aggregate area of 1,058,207 sq. ft. and Crossword Bookstores Ltd. occupies additional 115,000 sq ft.

Shoppers' Stop retails a range of branded and own label apparel, footwear, perfumes, cosmetics, jewellery, leather products and accessories, home products, books, music and toys. All these are well complemented by café, food, entertainment, personal care and various beauty related services

Its loyalty programme called First Citizen currently has over 6,87,000 members.