V-Mart Retail, India’s leading value fashion retailer, has announced its audited financial results for the first quarter of FY20, which were approved by the Company's Board of Directors.
For the first quarter, the company reported net revenue at Rs 4530 million, up 25% year-on-year from Rs 3612 million. Same-store sales growth (SSSG) stood at 5.2% for the quarter. The company registered the highest revenue growth in Uttar Pradesh, its largest state in terms of retail store presence.
The key growth driver for this quarter was the holy month of Ramadan, leading to Eid, a festival widely celebrated by millions of families in geographies where V-Mart has a substantial presence. EBITDA, at Rs 578 million, stood at 12.8% for the quarter, suitably adjusted for Ind AS 116, which became applicable from 1st April 2019.
Continuing unabated its retail footprint expansion, the company opened 13 new stores in the Apr-Jun quarter, reaching a total area of 1.88 million sq ft, and setting the pace for the year ahead. During the quarter, the company also closed down one store, which was an outcome of its ongoing rigorous store portfolio performance review and rationalization process.
Lalit Agarwal, CMD, V-Mart Retail, said, “We remain bullish on the long-term market opportunity and V-Mart’s ability to drive accelerated expansion. Even though we are witnessing a bit of liquidity crunch in the economy and consumers holding back on spending, we were able to pull up sales and record impressive growth, particularly in the build-up to Eid in our key markets.”
“This was possible because of more focused fashion apparel and merchandize collection and promotional offers that connected well with our customers, who are always looking for better value. We also realize that, as customers, a large number of whom are millennials, become more aware of the latest fashion trends, our ability to offer value-fashion at a faster pace will be the key differentiator in a rapidly growing, but also more competitive market,” he added.