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An almost 60 per cent year-on-year decline in net sales to Rs 110 crore has primarily contributed to beleaguered retailer Kouton Retail posting a humungous loss of Rs 317 crore in the recent December quarter, compared with the Rs 16-crore profit registered in the December 2009 period.
Turning the knife in the wound was the huge Rs 254-crore write-off of debtors and inventories.
The losses would have been worse, but for the sharp increase in inventory (Rs 86 crore), suggestive of the challenging off-take situation being faced by the retailer.
Other highlights of the poor show included the 37 per cent increase in interest cost to around Rs 30 crore, indicating continued high pressure on the leverage front.
High debt has been a drag on the stock for quite some time now.
Meanwhile, a sharp decline in employee cost (down by 28 per cent over the December 2009 quarter) hints aggressive restructuring measures.
Another disconcerting detail is the very high level (close to 98 per cent) of the promoter's shareholding being pledged, compared with nearly 44 per cent in the year-ago period.
The stock was punished in Wednesday's trade, declining almost 5 per cent to its all-time low of Rs 28, compared with the 1 per cent fall in the Sensex.
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