V-Mart reports 66% growth in FY2021 income

For the full year ended March 31, 2021, V-Mart Retail reported a 66 per cent growth in Y-o-Y income despite a challenging COVID impacted year. As per Equity Bulls, despite lower operating days, reduced topline and marginalized savings due to largely fixed cost structures, the company’s EBITDA recovery remained high at 61 per cent with 12.per cent EBITDA versus. 12.9 per cent reported for last year. However, the company reported its first-ever yearly loss at 2 -6 Cr in its 19 year history.

In its fourth quarter, V-Mart Retail saw a 106 per cent Y-o-Y increase in income to Rs 356 crore. However, its overall footfalls in the quarter remained low at 88 per cent Y-o-Y. An increase of 8 per cent in basket size and higher customer conversions helped improve the topline while improvements in inventory freshness and better full-price sales helped it to deliver a relatively better EBITDA growth of 21 per cent Y-o-Y for the quarter.

The company opened 20 new stores in FY21, of which seven were opened in the fourth quarter. It total store count now stands at 279. The company continued to embark on digitization and strengthening across the front-end and back-end operations during the fourth quarter. The Company achieved the Great Place to Work (GPtW) certification, during the quarter which indicates its lively work culture and high employee morale; and winner of Most Admired Affordable Retailer in Visual Merchandising concept at IFA- Images Fashion Awards.

The company is currently in the process of revitalizing the omni platform by creative and compelling products and shopping experience as it could offer a tremendous boost to its overall sales going forward.