V-Mart Retail Ltd share Price

V-Mart, having over the years built its fortress in non-tier I cities, is well poised to capture market share in the growing ~₹ 2.5 trillion value fashion industry. The company enjoys strong moats that would provide an edge over increasing competition in tier III-IV regions.

• V-Mart follows a cluster based approach of adding stores within a radius of 50-100 km. This gives it better economies of scales, supply chain efficiencies and better understanding of fashion needs of the specific region

V-Mart’s results were a mixed bag wherein revenue was below our estimates while profitability was better than anticipated.

•                 On a favourable base, revenue grew 30% YoY to ₹ 458.8 crore. Newly acquired 74 Unlimited Stores in September contributed 16% to Q4 sales
• Gross margins improved 510 bps YoY to 34.9% owing to lower discounting and timely price hikes taken (~15-17%) to offset RM inflation. Higher employee and other expense due to integration of Unlimited format led to 140 bps expansion in EBITDA margins to 11.0%
•                 Higher depreciation and interest expense owing to integration of Unlimited business led the company to report a net loss of ₹ 2.6 crore

Q4FY23 Quarterly & FY23 Annual Result Announced for V-Mart Retail Ltd.

Department Stores company V-Mart Retail announced Q4FY23 & FY23 results:

Q4FY23:

• Revenue of Rs 594 crore, up 29% YoY
• EBITDA and PAT stood at Rs 23 crore and Rs (-37) crore respectively.
• The same store sales (SSSG) grew by 10% YoY for the quarter and by 23% YoY for the full year.

FY23:

• Revenues for full year FY23 was Rs 2,465 crore, growing by 48% YoY
• EBITDA and PAT for the year stood at Rs 269 crore and Rs (-8) crore, respectively.
• Maintaining a steady rate of expansion, the company opened 17 new stores in Q4 and 59 new stores in the year, taking the tally of total stores to 423.

Result PDF