V-Mart shares jumps 7% following Q1 results; net profit at ₹12 crore

The company’s revenue grew 16% year-on-year (YoY) to ₹786 crore. Following the announcement, shares of the company were trading 7.63% higher at ₹3,511 per share.

For the quarter ended June 30, 2024, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 89% YoY to ₹99 crore.

The company’s retail trade segment revenue, which includes the V-Mart and Unlimited brands, grew 17.05% YoY to ₹774 crore. The company’s digital marketplace segment, saw a 33.29% YoY decline in revenue to ₹11.5 crore.

V-Mart reported a 36% YoY rise in its footfall during the quarter. However, the conversion rate fell to 47% compared to 54% in the corresponding period last year. The company’s total average transaction size during the quarter declined 2% YoY to ₹1,036.

The company reported an improvement in its working capital as its inventory reduced by 7.5% YoY to ₹671 crore.

During Q1FY25, V-Mart added 7 new stores resulting in a 4% YoY growth in total stores to 448. The company closed 3 underperforming stores during the quarter and stated that it remains focused on its store expansion plan.

LimeRoad, V-Mart’s digital marketplace saw its EBITDA loss declining to ₹10.3 crore compared to an EBITDA loss of ₹25.6 crore in the corresponding period last year. At the same time, LimeRoad has integrated 71% of V-Mart’s stores compared to 18% last year.

The company stated that LimeRoad is targeting a fashion-forward audience to extend its total combined addressable market.

Shares of the company have risen by nearly 74% since the beginning of the year. The stock has gained over 52% in the past year.