LISM to open 4 hypermarkets soon
By CL Jose
KOCHI/August 03-2022: Lulu International Shopping Mall Ltd (LISM) that runs the storied Lulu Mall chain in India has closed yet another financial year with loss… at Rs51.4 crore for 2021-22 (FY22).
The shopping mall major had reported a loss of Rs100.54 crore for the previous year too, in 2020-21. The trend is not surprising as retailing and malls were among the few sectors, which were heavily impacted from COVID-led disruptions.
Care Ratings noted that due to lockdown restrictions, footfalls at the Lulu malls were severely impacted and compounding the trend, tenants had sought for rental waivers/discounts from the mall owners, denting the revenue further.
“Owing to these factors, LISM reported net losses during FY21 and FY22, but the operations have quickly recovered during the second half of the current year (H2-FY23),” the rating agency noted.
Against the operating income of Rs742.8 crore the group earned for FY21 and Rs1379.9 crore for FY22, the Group could generate an operating income of Rs669.1 crore for the first quarter of the current year (FY23).
4 hypermarkets soon
LISM plans to operate several hypermarkets in India in the long term with immediate plans to open four hypermarkets including two in Kerala and one each in Coimbatore and Bengaluru.
Unlike the favourable response received for its hypermarkets in Kerala malls, sales in Bengaluru hypermarket have been low. “Nevertheless, in terms of leasing out of space to outside tenants, 86.2 per cent of area has already been leased out as on March 31, 2022,” Care said.
Rs400 cr new loan
During 2021-22 (FY22), LISM availed a top-up debt of Rs400 crore on Kochi Mall, which was primarily utilised for extending loans and advances to associate/group entities, according to the agency.
