V-Mart Retail Q1 Review - Second Wave Impacted Momentum In Core Markets: Centrum Broking
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Centrum Broking Report
On expected lines, the second wave impacted V-Mart Retail Ltd.’s performance in Q1 FY22.
Revenue grew 127.3%; yet Ebitda/adjusted profit after tax declined, with loss of Rs 20 million/Rs 287 million.
Management indicated that its core rural markets were impacted severely, with only 51% operational days.
June/July saw sharp rebound, drawing on better consumer sentiment, coupled with short wedding season, driving normal demand.
Gradual recovery in footfalls, with robust conversion rate at 70.7% drove transaction size by 2.9%.
To offset rising input prices, V-Mart took ~5% price increase.
Further, tighter cost controls held gross margins at ~31%; however, lower scale of operations with rising other expenditure and employee cost led to Ebitda loss.
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