V-Mart Reported Revenue of Rs. 181.9 Crs in Q1’FY22, 129% Growth vs Q1’FY21 The company's revenue rose 129.0%, while the EBITDA loss reduced by INR 3.8 cr to INR 2.0 cr, YoY. The quarter was affected by the unprecedented second wave of the pandemic resulting in lockdowns in almost all cities where the company has operations, leading to a loss of 51% operating days. Stores in the Eastern regions performed relatively better due to availability of higher number of operational days, while stores in UP continued to outscore other geographies reflecting the inherent strength of the company in India’s largest populated state. EBITDA and PAT for the quarter stood at INR -2.0 Cr and INR -28.7 Cr, respectively underscoring the disproportionate negative impact of Covid-19, as most of the Company’s costs remain fixed and the store operations resumed as and when local permissions allowed operations, thereby ruling out any large scale cost reductions for extended periods, unlike last year. Prudent inventory control measures led to 15% reduction YoY and also a 15% reduction from last quarter. The company opened 3 new stores during the quarter, while keeping intact largely the full year new store roll out strategy, despite the Covid induced challenges. The footfalls during the quarter increased by 115% while the Average Selling Price for fashion increased by 19% and the Average Bill Size also increased by 3%, YoY, showing the strong trust of customers in the offerings and the positive impact of Covid hygiene measures implemented across the stores. The company continues to be vigilant on cash conservation and maintains comfortable liquidity while actively working on implementation of expansion strategy around new stores, online retail, digital transformation and also supply chain infrastructure development, parallelly. Mr. Lalit Agarwal, VMart’s CMD, commented, “It was a tough quarter and we went all-out during this challenging time by extending all sorts of help to employees' well being - physically, mentally and emotionally. At community level, we also helped set up Covid Care facilities in Gurgaon.” “The quick pick-up in consumer demand is a testimony to the customers trust in the V-Mart brand, as well as the deep-rooted relationships at local level communities.“ “We undertook a campaign in May to ensure all V-Martians get vaccinated at the earliest. I’m happy to say that well over 90% of our workforce is now vaccinated, at least once. With a larger number of people getting vaccinated overall, consumer sentiment is already leading back to normal. I foresee business bouncing back stronger in the coming months.” Result PDF