V-Mart Retail posts Q2 loss of Rs 14 crore
Value fashion retailer V-Mart Retail Ltd reported narrowing of net loss to Rs 14 crore ($2 million) for the second quarter ended September 2021, against a net loss of Rs 19 crore it reported in the year-ago period.
The company’s revenue for the quarter was up by 93 percent to Rs 338 crore, as against a revenue of Rs 176 crore in the corresponding period of the previous fiscal year.
V-Mart’s expenses for the quarter stood at Rs 361 crore, as against Rs 216 crore a year ago.
Commenting on the Q2 performance, Lalit Agarwal, said: "The rapid market uptick post the second wave of Covid-19 saw a strong recovery on the back of increased operational days and festive led consumption. Though the business got disrupted in Q1 owing to the second wave, it was encouraging to see operations recover quickly from mid-June onward, with rapid re-opening of our stores in almost all markets.”
“The GST hike proposed from the current 5 percent to 12 percent from January 01, 2022, on apparel and footwear in the sub-1000 rupees range, could impact margins and future sales as 88 percent of the company’s inventory and sales fall in this bracket,” Agarwal added.
V-Mart currently has a store count of 375 and plans to open around 50 stores every year to further fuel its growth in the Indian market.
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