Ezone records 44% rise in net profit

Ezone records 44% rise in net profitElectronics retail chain owned by the Kishore Biyani-led Future group, Ezone has become profitable after it recorded an increase of 44 per cent in net profit to Rs. 146 crore during the financial year 2012-2013 compared to the previous financial year.

The electronics retail chain focused on efficiencies in terms of people and store- and cost-optimisation in order to turn around its business as Biyani hinted his intentions to quit two years ago. The president-retail strategy at e-zone Rajan Malhotra said that the company has been able to revive its business by focusing on reducing costs.

The Future group has shut down 22 unviable ezone stores since 2011 and 2012. The company currently runs 38 ezone stores in the country. The retail chain has already left certain geographies such as Delhi and the National Capital Region. The company is focusing on having a large number of stores in fewer cities. This focus has allowed the company to improve its warehousing and distribution efficiencies in the country.

Malhotra said ezone has been looking at having smaller stores and has reduced store space by 20-30 per cent in recent times and at same time increased assortment resulting in improves tore management.