V-Mart posts strong profit jump in June quarter even as small town demand lags

Bengaluru: V-Mart Retail LTD’s net profit increases with cost cuts and improved operational efficiency at the April-June quarter, even if it reflects a wider pressure on slow sales and weak demand in small cities in existing stores and weak demand in small cities.

Calcutta -centered value fashion retailer’s income increased by 13% annually LaFrom three months to June, 885 Crore is a three -month income of more than twenty years. The performance has slightly exceeded Motilal Oswal’s analyst’s 12% growth forecast.

V-Mart’s net profit increased by 177% LaDespite the optional demand in the small towns of the country, 34 Crore in the April-June quarter of 26 financial years.

Sales in the old stores increased only 1% compared to the previous year, but the company said that this number appeared because the feast festival exchange took place earlier this year. “If you are set for this shift, the actual growth in the existing stores was closer to 5%, and both V-Mart and unlimited store formats contribute equally.”

“Business leverage began clearly and these margins will continue in the next neighborhoods, Amb “The numbers were very strong and the company showed significant efficiency on the cost side.”

The company’s interest, taxes, depreciation and pre -fire department earnings increase with an increase of 27%. La126 nuclei in June quarter, La99 Crore in the same period a year ago.

Investors applauded the three-month results of V-Mart because the company’s shares reached 5.7% higher. La807.40 Thursday at BSE.

The same store sales growth reflects a wider consumption slowing down in the optional retail. Avenue Supermarts Ltd (DMART) published only a quiet store of store sales growth (SSSG) in 26 quarters of 26, while Shoppers reflected 5.9% contract in the same period, similar softness and organized value and premium retail.

The same store sales growth measures the annual income increase in stores that have been operating for at least one year and is an important measure of the operational efficiency and financial health of a company.

The V-Mart added 15 new stores for a quarter and closed two low performance shows and took the total number of stores to 510 in 27 states and union region. While the store expansion continues, the company focuses on improving the performance in existing positions.

The expansion of V-Mart comes, especially in smaller towns, in a time when the competition in the value fashion segment is intensified. Competitors like V2 Retail are rapidly scaled, which has only added 26 new outputs in June quarter and is considering reviewing the 26 FY26 expansion guidance from the previous target of 100 stores. The company runs a castle and more than 215 stores in the eastern markets such as Bihar, Uttar Pradesh and Odisha, where V-Mart is also a dominant presence. This parallel expansion gives increasing competition signals among the price -sensitive consumers in small cities of India.

However, V2 Retail and Vishal Mega Mart have not yet announced their June quarter earnings.

Founded in 2002 by Lalit Agarwal, V-Mart retail became one of India’s leading fashion retailers, and firstly addressed the mid-income household people in the Tier-2, Tier-3 and Tier-4 cities. With a castle in North and East India, the company runs a chain of affordable fashion and lifestyle stores that offer clothes, shoes and accessories for the whole family. Over the years, V-Mart has a reputation to serve price-sensitive consumers in small towns, focusing on efficient store operations, localized store and special labels.

A significant portion of V-Mart’s wider expansion strategy was the integration of the retail chain obtained from Arvind Lifestyle in 2021. La150 Crore agreement. The purchase provided V-Mart to Tamil Nadu, Karnataka, Andhra Pradesh and Tahangana by adding 74 wide format stores to Southern India, and there is no very few or no footprints in urban and semi-urban markets. The company said that the format is now profitable and that it is equally carried out with the old V-Mart sales points in June and both contributes to the same store sales growth.

Fashion continues to be the basic category and special labels make up 64% of clothing sales. V-Mart’s latest collections, aiming at Gen Z consumers, included designs led by influencer, which have performed well in the new market formats, and styles inspired by street clothes.

Lalit Agarwal, General Manager of the company’s V-Mart Retail, is a direct result of recoil, back-end optimization in profit and margin expansion. Particularly for the genre, adaptation and trend harmony in the Gene Z towns in the towns of Level II and III, ”he said.

“Our renewed focus on product curator, customer information and disciplined execution helps us to navigate in market difficulties and to provide profitable growth,” he said.

When we look forward, Prajapati said that the festival season and macro trends could further increase the performance. “This year’s Diwali may also be strong because income tax aid will be shown in the second half. CPI has alleviated inflation slightly and it is likely that household savings are likely to heal, so that consumers may spend more.”