V-Mart Retail Q2 business leaves Street unimpressed

V-Mart share price NSE: V-Mart Retail (VMART) shares on Wednesday, October 4 gave up initial intraday gains to hit a 52-week low of Rs 1,938.6 on NSE, a day after the retail store chain operator pegged single-digit growth in revenue in the quarter ended September 30, 2023, and said that a shift in the Hindu calendar this year moved the festive season to the next quarter. The festive season in the country typically sees higher footfalls in shopping malls and retail stores as consumers line up their discretionary spends around this time.  

V-Mart Retail shares finished Rs 24.6, or 1.23 per cent, to Rs 1,969.05 apiece on NSE, giving up mild gains registered earlier in the day. In a quarterly business update, released post-market hours on Tuesday, V-Mart said its total revenue grew eight per cent on a year-on-year basis to Rs 549 crore in the quarter ended September 30. That included revenue of Rs 22 crore from its digital marketplace, LimeRoad, as income charged from sellers on a net merchandising value (NMV) of Rs 54 crore.

Here's how the counter moved on Wednesday: 

Source: NSE

The company has opened eight new stores, comprising under V-Mart stores and Unlimited stores, and closed two stores, one each in Uttar Pradesh and Telangana, during the quarter.  

Here is a location-wise breakup of the eight new stores, as shared by V-Mart:  

• Kerala: 2 
• Karnataka: 1 
• Uttar Pradesh: 2 
• Uttarakhand: 1 
• Gujarat: 1 
• Madhya Pradesh: 1  

With this, the total number of stores stood at 437, as of September 30, including 83 Unlimited stores, the company said. V-Mart Retail also said it operationalised a newly-established warehouse facility that would help in improving its back-end logistics. “Accelerated liquidation of last year's inventory which was acquired during the times of peak raw material pricing, through extended end of season sales improved overall inventory health,” V-Mart added.

What does V-Mart do? 

Founded in 2002, V-Mart is an omni-channel retailer delivering experiential offerings to the middle class. V-Mart offers fashion apparel, footwear, home furnishings, general merchandise and groceries in tier II, III, and IV cities across India. 

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