Latest news with #LimeRoad
Mint
03-07-2025
- Business
- Mint
V-Mart Retail begins FY26 on a slower note as latest business update disappoints
V-Mart Retail Ltd's shares fell about 4% on Wednesday after its latest business update came as a disappointment. Revenue from operations increased 13% in the June quarter (Q1 of FY26) from a year earlier. In comparison, revenue growth in FY25 was almost 17%. Same store sales growth (SSSG), a measure of comparable sales over a period, came in at 1%, lower for the third consecutive quarter. V-Mart-format SSSG stood at 1% vis-à-vis 7% in Q4 of FY25 and 10% in Q3 of FY25. Unlimited-format SSSG also came in at 1% in Q1 versus 10% in Q4 of FY25 and 11% in Q3 of FY26. As per V-Mart, after adjusting for the impact of advancing Eid to the previous quarter, overall SSSG was up 5% year-on-year in Q1, with the SSSG for both V-Mart and Unlimited at 5% each. Calculated revenue per square foot increased by a modest 1% year-on-year to ₹2,032 in Q1, Motilal Oswal Financial Services said in a note. V-Mart opened 15 stores in Q1 and closed two, taking the total count to 510 as of 30 June. Profit margins will be in focus when the company announces its Q1 results. V-Mart did well on the operating profit front in FY25, with its Ebitda margin expanding 394 basis points to 11.6%, helped primarily by a decline in other expenditure. Investors will also watch for revenue contribution from LimeRoad, V-Mart's digital marketplace, in Q1, details of which were not disclosed in the update. LimeRoad's Ebitda loss dropped 57% in FY25 and a breakeven is not expected in FY26 as well. Competitive intensity 'We believe that pre-pandemic Ebitda margin will take much longer to achieve as LimeRoad losses will continue to marginally impact Ebitda along with ESOP costs," Nirmal Bang Institutional Equities said in a report dated 30 June. V-Mart plans to open about 65 stores in FY26, which can aid revenue. While it continues to be a beneficiary of the shift from unorganised to organised retailing, competitive intensity has increased as many value retailers have expanded stores rapidly recently. Moreover, the company's focus on providing value to customers means the chances of a meaningful improvement in average selling price are lower. Stiff competition and a potentially muted demand recovery could mean investor sentiment is likely to stay subdued for the stock, at least in the near term.
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Business Standard
05-05-2025
- Business
- Business Standard
V-Mart shares fall 9% after Q4 results, bonus shares news; check details
V-Mart share price: V-Mart Retail shares plunged 9.4 per cent on the BSE on Monday, May 5, 2025 SI Reporter New Delhi V-Mart Retail share price today V-Mart Retail shares plunged 9.4 per cent on the BSE on Monday, May 5, 2025, after the announcement of the company's March 2025 quarter results. The stock hit an intraday low of ₹3,054.25 per share. At 1:50 PM, V-Mart shares were trading 7 per cent lower at ₹3,132.10 per share as against a 0.4 per cent rise in the benchmark BSE Sensex index. Around 5,510 shares have changed hands on the V-Mart Retail counter, so far, on the BSE as compared to a two-week average of 2,097 shares. Why are V-Mart Retail shares falling today? The decline in V-Mart shares came after investors booked profit in the stock after the Q4FY25 result announcement. In the March 2025 quarter (Q4FY25), V-Mart Retail reported a revenue growth of 17 per cent year-on-year (Y-o-Y), including LimeRoad's commission income, at ₹780 crore. Of this, revenue growth from V-Mart (offline) was 19 per cent Y-o-Y at ₹655.6 crore, and Unlimited was 11 per cent Y-o-Y at ₹116.4 crore. LimeRoad's commission income, however, dropped 35 per cent Y-o-Y to ₹10.5 crore. V-Mart offline sales contributed 84 per cent of the total revenue, Unlimited contributed 15 per cent, and LimeRoad 1 per cent. The company also turned profitable in the quarter with a net profit of ₹18.5 crore as against a net loss of ₹38.9 crore in the year-ago period. The company managed to reduce LimeRoad net loss by 44 per cent Y-o-Y. On the margin front, V-Mart's gross margins expanded 140 basis points Y-o-Y to 33.1 per cent in Q4FY25, while Ebitda margin improved 270bp Y-o-Y to 8.7 per cent. Consolidated Same Store Volume Growth (SSVG), meanwhile, rose to 8 per cent from 5 per cent Y-o-Y. V-Mart Retail opened 13 new stores and closed 4 stores during the quarter. For the full year FY25, it added 62 new stores and closed 9. V-Mart bonus shares news The Board of Directors on V-Mart Retail has approved the issue of 3 fully paid bonus equity shares for every 1 fully paid equity share of face value ₹10. The record date for determining the eligibility of shareholders for the bonus issue will be announced separately, subject to the shareholders' approval. About V-Mart V-Mart Retail is an omni retail store chain, offering fashion apparel, footwear, home furnishings, general merchandise, and Kirana. Focused on Tier-II and Ill cities, V-Mart is present pan-India with an average store size of 8,000 sq. ft.
