Third Quarter Will Be A Litmus Test For V-Mart, Says CFO Anand Agarwal
Almost a third of the year’s sales come in quarter three because of the higher-priced winter merchandise, says CFO Anand Agarwal.
V-Mart Retail Ltd.’s third-quarter performance will be a “litmus test” for the clothing and apparel maker, according to its Chef Financial Officer Anand Agarwal.
“Quarter three is going to be the litmus test, and it has started well. The festive season has been going well,” Agarwal told BloombergQuint in an interview.
The ongoing quarter, he said, is the most important quarter for the year. “Almost a third of the year’s sales come in quarter three because of the higher-priced winter merchandise.”
V-Mart Q2 Earnings Highlights YoY
- Revenue rises 19.8 percent to Rs 314.2 crore
- Ebitda gain of Rs 11.3 crore vs loss of Rs 1.4 crore
- Adjusted for Ind AS, Ebitda loss of Rs 7.9 crore (BQ Calculations)
- Net loss of Rs 18.4 crore vs loss of Rs 4 crore
- Gross margins up 220 basis points to 31.3 percent
- Gross margins see impact of inventory gains
- Same store sales grew 1 percent
- Added 27 stores in Q2 taking total to 239
Revenue Contribution
- Apparel: 80 percent
- Non-Apparel: 12 percent
- Kirana: 8 percent
Footfall and conversions indicate that the company’s growth is here to stay and it is on track to open new 60 stores this year, Agarwal said. “We opened 44 stores in all of last year and have opened 42 stores only in the fist half this year.”
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