V-Mart Q2 Results Review - Long-Term Growth Levers Intact: Axis Securities

Axis Securities Report

V-Mart Retail Ltd. Q2 FY23 sales and Ebitda were ahead of our estimates. Revenue stood at Rs 506 crore, up 50% YoY (61% growth over pre-Covid levels; 10% same-store sales growth in Q2 FY23).

The company posted an Ebitda of Rs 54 crore while Ebitda margins inched up by 450 bps YoY to 10.6% in Q2 FY23. The company posted a negative net profit of Rs 11 crore as demand in tier II/III cities remained impacted owing to inflationary pressures.

For H1 FY22, revenue stood at Rs 1,666 crore, implying 55% YoY growth while Ebitda/profit after tax stood at Rs 204 crore/11 crore. The sales mix for Q2 FY23 stood at 77.4% for apparels, 10.3% for non-apparels, and 12.3% for Kirana.

The inventory levels remained healthy despite the up-stocking for the festive season with comfortable liquidity and cash position.

Footfalls have improved by 42% YoY to 95 lakh in Q2 FY23 with a 61.8% conversion rate. The average selling price for apparel has increased by 27% to Rs 384 in Q2 FY23, whereas ASP has increased by 13% to Rs 223 on an overall basis.

V-Mart opened 16 new stores in Q2 including two stores in the South taking the total store count to 405 (326 V-Mart stores and 79 Unlimited stores) in September 2022.

Click on the attachment to read the full report:

DISCLAIMER

This 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.