News: V-Mart's results were a mixed bag wherein revenue were below our estimates while profitability was better than anticipated. Revenue for the quarter grew 30% YoY to | 458.8 crore (I-direct estimate: | 483.9 crore). Revenues also include contribution from Unlimited format (~17% of sales), which was integrated last quarter. Excluding the Unlimited format, revenue recovery was at ~110% of pre-Covid levels. We believe growth is mainly price led as the company had taken price hikes of ~7-8%. EBITDA margins improved 140 bps YoY to 11.0% (I-direct estimate: 4.1%). Absolute EBITDA grew 50% YoY to | 50.3 crore
Views: We like V-Mart as a structural long term story to play the unorganised to modern retail shift. The management indicated that outlook for FY22 remains optimistic
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