V-Mart Retail revenue rises by 47% yoy at Rs692.02 crore; Stock drops 3%

11 Feb 2022 , 02:37 PM

V-Mart Retail Limited recorded a higher profit at Rs57 crore in Q3FY22 against Rs48 crore in Q3FY21, a growth of 19% yoy. The company’s revenue surged to Rs692.02 crore in Q3FY22 from Rs470.02 in crore Q3FY21, a rise of 47% yoy.

EBITDA of Rs135 crore growing by 30% yoy from Rs48 crore.

The company stock was under pressure and at around 2.40 pm, V-Mart Retail Limited was trading at Rs3,580.45 per share down by Rs113.7 or 3.08% from its previous closing of Rs3,694.15 per share on the BSE.

“Q3FY22 saw a bounce-back across all markets with strong festive demand and onset of winters. The quarter also saw a successful integration of the Unlimited business in South and West India which also contributed positively to the overall profitable growth,” the company said in a filing on Thursday.

For the nine months ended December 31, the company’s revenue grew by 67% yoy to Rs1207 crore and EBITDA grew by 58% to Rs154 crore. The Company added 9 new stores and closed 3 stores in the quarter, taking the overall store count to 374 as of December 31, 2021. The outlook remains positive for the ramp up of new stores which is in line with historical growth trends. The company also revamped its online platform with significant tech upgrades leading to an enhanced customer experience and parallel launch on Amazon and Myntra.

Lalit Agarwal, MD, said “Consumer trust in V-Mart has seen an alltime high growth with significant increases in their average bill sizes and repeat rates, this overall increasing the annual customer value. Attractive marketing schemes and campaigns coupled with vibrant new season merchandise increased the customer footfalls and conversions. Digital content and social media initiatives remain increasingly central to the overall marketing strategy.”

Special festive drives such as “Love for fashion every occasion” also played a significant hand in propelling the quarters sales. Loyalty customers continued to demonstrate a strong growth trajectory. Multi-dimensional customer segmentation, personalized communication, coupon-based activations, and gamification vastly improved customer experience.