V2 Retail PAT in Q3FY22 drops 17.5% yoy to Rs123 million; Stock up 1.5%

15 Feb 2022 , 01:04 PM

V2 Retail Limited, one of India’s fastest growing Retail Company, on Monday declared its unaudited Financial Results for the quarter and nine month ended December 31, 2021. For the quarter, revenue from operations stood at Rs2,389 million, registering a growth of 5% on yoy basis. Gross Margin stood at 33.4% for Q3FY22. The stores were operational on an average for 98% days of the total days for Q3FY22.

EBIDTA for the quarter stood at Rs409 million as compared to Rs436 million in Q3FY21. EBIDTA margin stood at 17.1% for Q3FY22 as compared to 19.2% for Q3FY21. Profit After Tax (PAT) for the quarter stood at Rs123 million, a decline of 17.5% yoy as compared to Rs149 million in Q3FY21.

Revenue from operations for 9MFY22 stood at Rs4,710 million, registering a growth of 35% on yoy basis. Gross Margin stood at 33.5% for 9MFY22 as compared to 34.4% for 9MFY21.

EBIDTA for 9M FY22 stood at Rs704 million as compared to Rs606 million in 9MFY21 registering a growth of 16%. EBIDTA margin stood at 15% for 9M FY22 as compared to 17.4% for 9MFY21. PAT for 9MFY22 stood at Rs(22) million as compared to Rs(26) million in 9MFY21.

At around 1. 08 pm, V2 Retail Ltd was trading at Rs152.25 per share up by Rs2.2 or 1.47% from its previous closing of Rs150.05 per share on the BSE.

Key developments:

• The Company opened 1 new store during Q3FY22.
• As on December 31, 2021, the company operates 97 stores spread across 15 states and 84 cities with a total retail area of ~10.23 lac Sq. Ft.

Ram Chandra Agarwal, Chairman & Managing Director said: “The quarter witnessed strong demand (pre-covid level) in the festive season of October & November, however demand tapered sharply post December 15th and till January 2022 due to restrictions imposed by various state governments in the wake of third wave of Covid-19. We are again seeing consumer sentiments returning towards normalcy since beginning of February 2022 as the national infection caseload came down. We are hopeful that the recovery shall be sharper with the onset of festive / wedding season in coming months. All the stores are now fully operational with overall stores operation days at 98% for the quarter. Our customers continue to increasingly leverage the convenience of our digital platforms with the online channel.

Our expansion plan on Stores is on track. Save delays due to pandemic, we are planning to open additional 5-6 stores in Q4FY22. Our emphasis on Private Brands continues and the growth is encouraging.”