V-Mart Retail Ltd share Price Today

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 reported a subdued operational performance with significantly higher operating expenses impacting profitability.

• Revenue for the quarter grew 12% YoY to ₹ 776.9 crore, with Unlimited format (17% of sales) registering 12% sales growth. Revenue per store for V-Mart business continues to lag pre-Covid levels (down 15%) at ₹ 1.9 crore
• Bloated operating expenses came in as a negative surprise, which led to significant miss on the EBITDA front. Employee and other expenses increased significantly by ~₹ 41 crore QoQ (up 31%) mainly owing to integration of LimeRoad division (~₹ 36 crore of which ₹ 12 crore is one-off)
• Subsequently, EBITDA margins contracted 620 bps YoY to 13.3% (excluding the LimeRoad integrations, the margins would have been ~17%)

Department Stores company V-Mart Retail announced Q1FY24 results:

• Revenue of Rs 679 crore in Q1FY24, up 15% YoY.
• The company's EBITDA and PAT stood at Rs 53 crore and Rs (-22) crore respectively.
• The Company’s EBITDA margin stood strong at 13% of revenue excluding the loss contributed from the newly acquired Limeroad marketplace segment.
• The strategic integration of LimeRoad continued to thrive as the pla?orm's revenues increased by 47% QoQ paving the way for robust omni operations in the coming future.
• The Company remains focused on its store expansion plan and opened 9 new stores in Q1FY24, taking the total number of stores to 431. The Company’s newly owned warehouse in Palwal, Haryana also became operational during Q1FY24.

Result PDF