V-Mart Retail Posts Net Loss of INR 21.9 Crore in Q1 FY23, Revenue Up 15.4%
V-Mart Retail Limited, a leading value fashion retailer in India, reported a net loss of INR 21.94 crore for the first quarter of the financial year 2023-24 (FY23), as compared to a net profit of INR 20.45 crore in the corresponding quarter of the previous year.
The company’s revenue from operations increased by 15.41% to INR 678.52 crore in Q1 FY23, from INR 587.88 crore in Q1 FY22. However, its total expenses rose by 25.67% to INR 708.99 crore.
The net loss was primarily due to the one-time cost of acquisition of the Limeroad marketplace segment. V-Mart Retail acquired Limeroad in December 2022 for INR 250 crore. The company incurred a loss of INR 40 crore in Q1 FY23 on account of the acquisition.
Excluding the loss contributed from Limeroad, V-Mart Retail’s EBITDA margin stood strong at 13% of revenue. EBITDA refers to Earnings Before Interest, Taxes, Depreciation and Amortisation. This is a healthy margin and indicates that the company’s underlying business is profitable.
The company continued its store expansion plan in Q1 FY23 and opened 9 new stores, taking the total count to 431. This is in line with the company’s strategy of growing its retail footprint across the country.
V-Mart Retail is confident of returning to profitability in the next few quarters. The company is expecting a strong performance in the second half of the financial year, on the back of festive season sales and continued store expansion.
- Revenue growth was driven by the strong performance of offline stores.
- Online sales grew by 50% in Q1 FY23.
- EBITDA margin was impacted by the one-time cost of acquisition of the Limeroad marketplace segment.
Company is confident of returning to profitability in the next few quarters.
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