V-Mart Q3 Review - Demand Remains Muted With Online Investments Expected To Keep Margins Depressed: Systematix

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Research Report.V-Mart Retail Ltd.’s Q3 FY23 results were a big disappointment on both growth and margin fronts with a dual impact of erratic climate conditions in October and December (impacting demand) coupled with significant investments in the online business (mainly LimeRoad) impacting margins. Revenue grew by only 12.3% YoY (1% same-store sales growth) in a seasonally strong quarter despite price corrections and a low base. V-Mart core business grew 2% YoY (80% contribution to sales) whereas Unlimited grew 87% YoY (17% contribution to sales). LimeRoad revenue got consolidated with-effect-from November 11, with V-Mart’s online and LimeRoad business collectively contributing 3% to revenue. Average selling prices remained flat given focus on lower price points while footfalls grew 13% YoY, offset by a decline in conversion rate from 61% to 55%. Gross margin contracted 160 bps YoY to 35.4% due to an inferior sales mix while Ebitda margin contracted to 13.3% due to increased employee cost and other expenses (Rs 363 million spends on online business including Rs 118 million onetime integration expenses)..Click on the attachment to read the full report:.Vardhman Textiles Q3 Results Review - Gradual Demand Recovery Visible: Systematix.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

V-Mart Q3 Review - Demand Remains Muted With Online Investments Expected To Keep Margins Depressed: Systematix

Demand outlook remains soft in key states, like-to-like growth at 1%.

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