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 Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

• Revenues: Rs 669 crore, up 13% YoY
• EBITDA: Rs 40 crore, increased by 76% YoY
• PAT: Rs (-39) crore
• Same Store Sales Growth (SSSG): 6% YoY
• Total number of stores: 444 

FY24 Financial Highlights:

• Revenues: Rs 2,786 crore, growing by 13% YoY
• EBITDA: Rs 213 crore
• PAT: Rs (-97) crore
• New stores opened: 46
• Underperforming stores closed: 25
• Additionally, the appointments of Mr. Raghuvesh Sarup and Ms. Shweta Kumar as Additional Directors.

Result PDF