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 Q1FY25 results:

• The Company reported revenues of Rs 786 crore in Q1, up 16% year-on-year (YoY) and EBITDA increased by 89% to Rs 99 crore and PAT stood at Rs 12 crore, for the quarter.
• The same store sales (SSSG) grew by 11% YoY for the quarter led to footfall growth.
• The inventory as at period end stood at Rs 671 crores, reduced by Rs 54 crore (-7.5%) YoY improving the working capital.
• The Company remains focused on its store expansion plan and has opened 7 new stores in Q1 FY25 and closed 3 underperforming stores, taking the total number of stores pan-India to 448 as at quarter end.

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