During Q3FY18, V-Mart reported an increase in revenue from operations by 13% to Rs 3,680 million, EBITDA by 30% to Rs 640 million, and net profit by 27% to Rs 367 million over the corresponding period last year. Same store sales growth (SSG) for the quarter remained flat over a high base of 17% in Q3FY17.
The growth was largely led by new store addition (167 vs. 136 in Q3FY17) as the company reported flattish SSG (both ‘Volume’ and ‘Value’ SSG was flattish) which was on expected lines as the base was high in the corresponding quarter last year, analyst at Nirmal Bang Equities said in result update.
One of the expectations post implementation of Goods and Services Tax (GST) was that of formalisation of the retailing sector, especially in Tier-2 and Tier-3 towns. It was indicated that the unorganised players continue to operate outside the ambit of GST and continue to have a reasonable market share. VRL states that this could change in future when efforts to prevent GST evasion like implementation of the e-way bill is introduced, the brokerage firm said in a report. The stock however, trading above its 12 month target price of Rs 2,039 per share.
V-Mart is a medium-sized hypermarket format retail chain based at New Delhi. It is a multi-brand family retail store offering apparels, general merchandise and kirana. Primarily focusing on Tier- H & Tier- 111 cities which are located as standalone stores in high-street areas and shopping hubs.
At 02:51 pm; the stock was trading 13% higher at Rs 2,198 on the BSE, as compared to 1.1% decline in the S&P BSE Sensex. A combined 183,919 shares changed hands on the counter on the BSE and NSE so far.