V Mart Retail declares Q4FY22 result: V-Mart reports 30% revenue growth and 50% increase in EBITDA YoY, for Q4, FY’22 Full year revenue zooms by 55% and EBITDA by 56%, proposes 7.5% dividend The company reported revenues of 459 cr, +30% YoY in partially covid impacted Q4 for FY’22 led by a good festive season across most of its markets, pan-India. Fresher inventory, higher gross margin contribution from south India stores, lower discounts, and control over expenses despite significant inflationary pressures, led to a healthy 50% increase in EBITDA, YoY. For the full year, revenues increased to Rs. 1,666 cr, +55% YoY for FY’22 reflecting a sharper growth from a significantly covid impacted last year. EBITDA for the full year also rose by 56% to Rs.204 cr, while the PAT increased to Rs.12 cr, vs a loss of Rs.-6 cr in the covid impacted previous year. The board of directors in their meeting held today, proposed a 7.5% dividend for the FY’22 subject to approval by the shareholders in the ensuing general meeting. Result PDF
Department Stores firm V Mart Retail declares Q3FY22 result: V-Mart revenue grows by 67% and EBITDA by 58% YTD December, YoY Sales & EBITDA both above pre-pandemic levels in Q3 Q3 saw a bounce back across all markets with strong festive demand and onset of winters. The company reported Quarterly Revenue of INR 692 Cr and EBITDA of INR 135 Cr growing by 47% and 30% year on year (YoY), respectively. The quarter also saw a successful integration of the Unlimited business in South and West India which also contributed positively to the overall profitable growth. For the period ended 31st December, the company’s revenue grew by 67% YoY to INR 1207 Cr and EBITDA grew by 58% to INR 154 Cr. The Company added 9 new stores and closed 3 stores in the quarter, taking the overall store count to 374 as of 31st December 2021. The outlook remains positive for the ramp up of new stores which is in line with historical growth trends. The company also revamped its online platform with significant tech upgrades leading to an enhanced customer experience and parallel launch on Amazon and Myntra. Commenting on the company’s performance in Q3, Mr. Lalit Agarwal, MD, said “Consumer trust in V-Mart has seen an all time high growth with significant increases in their average bill sizes and repeat rates, this overall increasing the annual customer value. Attractive marketing schemes and campaigns coupled with vibrant new season merchandise increased the customer footfalls and conversions. Digital content and social media initiatives remain increasingly central to the overall marketing strategy.” Special festive drives such as “Love for fashion every occasion” also played a significant hand in propelling the quarters sales. Loyalty customers continued to demonstrate a strong growth trajectory. Multi-dimensional customer segmentation, personalized communication, coupon-based activations, and gamification vastly improved customer experience. Result PDF
Highlights: V-Mart reports 93% revenue growth YoY for Q2 FY’22; accelerates expansion to reach 368 stores as of 30’ September 2021 The Company saw sustained recovery post the second wave of Covid related disruptions, despite the early part of the quarter remaining impacted by partial lockdowns in parts of the country. Acquisition of 74 Unlimited stores in South India, effective from 1st September also helped increase the sales recovery to 107% for the quarter, versus pre-Covid levels (Q2 FY20). On a comparable basis, excluding the addition of 74 Unlimited stores, the recovery from pre-Covid levels stood at 100% for the Company. The company continues to remain focused and committed to the accelerated store expansion plan with 86 net store additions for the quarter (including 74 stores acquired in South India) and now operates a total of 368 stores across 26 states. The southern acquisition and transition went ahead smoothly, with V-Mart adding 800+ employees to its already existing 7000+ strong workforce. The immediate focus of the company in the newly formed south zone remains on ensuring people and product continuity, while improving merchandise assortment, sharper pricing and integration of systems and processes. A key initiative in the overall merchandise strategy for the company will now be cross-populating selective stocks from south to north, and vice versa to add more variety and better options for consumers of both geographies. Improved sales and better supply chain management initiatives helped improve EBITDA to 6.1% for the second quarter, which traditionally remains a subdued and a small quarter impacted by end of season sales and lower margins. The inventory levels remained healthy despite the upstocking for the festive season with comfortable liquidity and cash position. Our customers continued to increasingly leverage the convenience of digital platform with the online channel continuing to register dynamic growth. Digital content and social media initiatives remain increasingly central to the overall marketing strategy. The company has also started launching exclusive styles on its online platform which is witnessing encouraging traction. The company also continues to invest significantly behind digital transformation projects and data analytics to further augment decision support systems across all parts of the business Commenting on Q2 performance, Mr. Lalit Agarwal, said the rapid market uptick post the second wave of Covid-19 saw a strong recovery on the back of increased operational days and festive led consumption (15th August Rakhi, Janmashtmi). “Though the business got disrupted in Q1 owing to the second wave, it was encouraging to see operations recover quickly from mid-June onward, with rapid re-opening of our stores in almost all markets,” said Mr. Agarwal. Strategic outreach of our brand through our omnichannel platform has also been encouraging. We saw significant consumer acceptance of our digital-based shopping avenues during the quarter, and continue to build upon that level of consumer trust by exciting offers, newer merchandise and customer service,” added Mr. Agarwal. Result PDF