V2 Retail stages recovery with revenue surge in Q3

Emerging from the shadows of the COVID slump, Indian’s value retailer V2 Retail reported a 56 per cent surge in revenue during Q3 FY24. Primarily driven by a robust performance from its existing stores, the retailer recorded a 47 per cent rise in same-store sales during Q3 and 29 per cent during 9MFY24.

Despite operating in a challenging environment with weak demand in rural and semi-urban India, V2 Retail strategically expanded its network, opening 14 new stores while closing nine underperformers during the April-December 2023 period. This network optimisation boosted the company’s store productivity, contributing to the strong financial performance.

While pricing pressures led to a slight dip in gross margin, the company's focus on quality control yielded positive results. It’s operating profit surged by 60 per cent and net profit improved by 153 per cent.

The company’s consolidated revenue also increased by 35 per cent during 9MFY24, accompanied by a 67 per cent rise in operating profit and a transition from a loss to a profit of Rs 24.1 crore.

V2 Retail is well-positioned to sustain its success in the value retail market by leveraging its established network, offering innovative products, and targeted expansion plans.