Q3 Results: Festive Sales Boost V-Mart Retail’s Profit
V-Mart Retail will expand operations in tier-4 cities, its Chief Financial Officer Anand Agarwal said.
V-Mart Retail Ltd. reported a jump in quarterly profit, thanks to festive season sales during the three months ended December.
“The festival period in particular was very-very good. Starting from Durga Puja to Diwali to Chhat, we have seen spectacular growth in all of our markets,” the retail chain’s Chief Financial Officer Anand Agarwal told BloombergQuint, adding that significant amount of customers visited the store during the period and spent on buying the fresh merchandise.
The company witnessed a good round of growth coming in from same-store sales, Agarwal said. V-Mart’s same-store sales increased 11 percent during the December-ended quarter, according to its exchange filing.
This, he said, will boost the confidence of the company, which is now looking to venture into new markets and open more stores to boost revenue growth.
We remain quite buoyant and bullish on the future.Anand Agarwal, chief financial officer, V-Mart Retail
The company will continue to focus on tier-1 and tier-2 cities, and expand operations in tier-4 cities, Agarwal said, noting the the tier-4 markets have a lot more growth potential.
Other Highlights:
- Remains slightly cautious on margin
- Sees competition in established markets
- Looks to maintain market share of at least 3 to 4 percent
- Make more investments in people and technology
Q3 Results (YoY)
- Net sales jump 27 percent to Rs 466 crore
- Net profit rises 13.6 percent to Rs 41.7 crore
- Ebitda up 14.5 percent at Rs 73.4 crore
- Ebitda margins shrink to 15.8 percent versus 17.4 percent
- Benefits from a Rs 70 lakh increase in other income to Rs 1.7 crore
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