‘V-Mart Retail’ reports 49% decline in Q1 FY22 revenues

12th August 2021, Mumbai:

For Q1 FY22, India’s leading value fashion retailer, V-Mart Retail reported a 49 per cent decline in revenues to Rs182 crore compared to Rs356 crore in Q4FY21. The company’s EBITDA loss was reduced by Rs 3.8 crore to Rs 2.0 crore quarter on quarter, Q1FY22 compared to Rs 1.5 crore in Q4FY21. The quarter was affected by the unprecedented second COVID-19 wave resulting in lockdowns in almost all cities where the company has operations, leading to a loss of 51 per cent operating days.

The company’s stores in the eastern regions performed relatively better due to availability of a higher number of operational days, while stores in UP continued to outscore other geographies reflecting the inherent strength of the company in India’s largest populated state.

V-Mart’s EBITDA and PAT for the quarter stood at -Rs2.0 crore and –Rs 28.7 crore respectively underscoring the disproportionate negative impact of COVID-19, as most of the company’s costs remain fixed and the store operations resumed as and when local permissions allowed operations, thereby ruling out any large scale cost reductions for extended periods, unlike last year.

Footfalls at the company’s stores during the quarter increased 115 per cent while the Average Selling Price for fashion increased by 19 per cent and the Average Bill Size also increased by 3 per cent, YoY. The company continues to maintain comfortable liquidity while actively working on new store expansion, online retail, digital transformation and also supply chain infrastructure development.

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