12 August 2023, Mumbai
In the first quarter of the current fiscal year, V-Mart Retail reported a 15.41% rise in revenue from operations, reaching Rs 678.52 crore, compared to Rs 587.88 crore in the corresponding period last year. However, the company faced a net loss of Rs 21.94 crore for the quarter.
Shifting Profit Dynamics
Contrasting with the previous year's April-June period, which had seen a net profit of Rs 20.45 crore, this quarter recorded a net loss. The company attributed this shift to various factors affecting profitability.
EBITDA Margin and Acquisitions
The company's EBITDA margin remained robust at 13% of revenue, excluding losses from the recently acquired Limeroad marketplace segment. EBITDA, signifying Earnings Before Interest, Taxes, Depreciation, and Amortisation, maintained its significance in assessing operational performance.
Expense Increase and Income Growth
Total expenses for the value fashion retailer surged by 25.67% to Rs 708.99 crore in the Q1 of FY 2023-24. On the other hand, total income climbed to Rs 680.02 crore, marking a 14.87% rise during the June quarter.
The company continued its growth strategy by adding 9 new stores in the June quarter, reaching a total of 431 stores.