V-Mart Q1 Results Review - Improvement In Growth Trajectory Coupled With Sharp Margin Improvement: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.V-Mart Retail Ltd.’s reported in-line topline growth, with strong margin performance led by reduction in Limeroad losses, controlled expenses, improving margins in Unlimited and better mix at V-Mart. Revenue grew 15.9% YoY led by +20% growth in V-Mart (83% of revenue) and +5% growth in Unlimited (16% revenue) while Limeroad revenue declined 33% (1% revenue). The strong double digit growth was led by volumes, the company continued to focus on growing volumes while lowering average selling price. ASP remained flat on an overall level while ASP for apparel declined 3%. Due to focus on lower price points, we expect ASP to remain around current levels going forward with the company targeting to attract value conscious customers. Same-store sales growth stood at 11% (V-Mart at 12%, Unlimited at 8%), led by strong rise in footfalls by 36%. Gross margin declined 57 bps to 35.2% while Ebitda margin expanded 486 bps to 12.6%. Limeroad losses reduced by 60% YoY/ 15% QoQ to Rs 103 million. Mix improvement in V-Mart led to expansion in the company's margins by 200 bps to 13.4% while Unlimited margins improved 450 bps to 18% led by cost controls. Adjusted PAT stood at Rs 121 million compared to a loss of Rs 219 million in Q1 FY24. The company opened seven new stores (five under V-Mart and two under Unlimited) and closed three Unlimited underperforming stores during the quarter. Total number of stores now stands at 448 (V-Mart 370 and Unlimited 78), with target to open 50 stores during FY25.Inventory during end of the quarter stood at Rs 6.71 billion, reduced by Rs 540 million (-7.5% YoY) thus improving the working capital. .Click on the attachment to read the full report:.V-Mart Retail Hits Two-Year High On Swinging Back To Profit In Q1.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

V-Mart Q1 Results Review - Improvement In Growth Trajectory Coupled With Sharp Margin Improvement: Systematix

The brokerage expects an improvement in demand conditions, revenue throughput and tangible benefits of the recent investments made by the company driving the company back to profitability in FY26E.

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