V2 Retail trades in red after registering loss of Rs10.2cr in Q1FY22

The company’s revenue from operations stood at Rs82.5cr, registering a growth of 123% yoy. Gross Margin stood at 31.7% for Q1FY22.

Aug 16, 2021 10:08 IST India Infoline News Service

Quarterly Results
V2 Retail Limited, on Friday declared its unaudited financial results for the quarter ended June 30, 2021. For the quarter, revenue from operations stood at Rs82.5cr, registering a growth of 123% on yoy basis. Gross Margin stood at 31.7% for Q1FY22 as compared to 29.7% for Q1FY21.

EBIDTA for the quarter stood at Rs10.7cr as compared to Rs7.2cr in Q1FY21. EBIDTA margin stood at 12.9% for Q1FY22 as compared to 19.5% for Q1FY21. Loss After Tax (PAT) for the quarter stood at Rs10.2cr as compared to a loss of Rs8.9cr in Q1FY21.

At around 10.45 am, V2 Retail Ltd was trading at Rs112.65 per piece down by Rs0.95 or 0.84% from its previous closing of Rs113.60 per piece on the BSE.

“The second wave and the aftermath disrupted our operations across our stores in recent months. Our stores operated for only 45% of the trading days in Q1 FY22. Nevertheless, we have been pleasantly encouraged by the rapid recovery in customer offtake starting from the middle of June on easing of pandemic related restrictions considerably aiding sentiment and improving consumer traction.

It is encouraging to note that in recent weeks, over 90% of our stores are operational on most days of a week with local restrictions being increasingly eased. We are witnessing a sharp recovery with July registering revenue recovery of over 85% vis-à-vis FY20 levels. Our customers continue to increasingly leverage the convenience of our digital platforms with the online channel registering growth in Q1 over previous quarter,” Ram Chandra Agarwal, Chairman & Managing Director, said.

Key developments:

The Company opened 1 new store and closed 3 non-profitable stores during Q1FY22. The Company has opened 2 new stores till date in Q2FY22.

As on June 30, 2021, the Company operates 93 stores spread across 15 states and 81 cities with a total retail area of ~9.8 lac Sq. Ft.
Same Store Sales Growth for the Q4FY21 stood at 62%. Our targeted stores addition for H1FY22 will be delayed. However, we on track of opening planned stores for FY22.

“At V2, with our strong customer connect we have witnessed strong rebound in demand post relaxation of restrictions in Q2FY22. We have seen significant pickup in volume from our online platform v2kart.com as well. With above normal monsoon so far, we forsee substantial pickup in demand during festival season starting August 2021 onwards,” the company said in a filing on Friday.

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