V-Mart shares decline 2% after losses widen 6-fold in Q2

V-Mart Retail shares were down 2.39 percent to Rs 1,663.1 at 12.37pm after the company’s losses widened almost six times in the July-September quarter from Rs 13 crore to Rs 64 crore in Q2FY24.

The company’s revenue grew 9 percent on-year to Rs 549 crore in Q2FY24. While earnings before interest tax depreciation and amortisation fell 98 percent on-year to Rs 1 crore in the July-to-September quarter. The company’s reasoning behind this was the shift in festive period from Q2 to Q3, which moved Durga Puja and Dusshera sales further.

Also read V-Mart Retail Q2: Net loss widens 5 fold to Rs 64.12 crore, revenue up 8.5%

“The ongoing festive period has been progressing well with good footfalls and sales growth in all major markets,” said the company in an exchange filing.

However, there was some good news, as footfalls increased 13 percent YoY in Q2FY24. Sales in Tier 1 cities increased 2 percent, while Tier 2 cities recorded 3 percent growth. Sales in Tier 3 cities however, fell 5 percent on-year in the same period.

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The company is committed to its store expansion plan and opened eight outlets in Q2 and 13 more for Q3, bringing the pan-India count to 450 as on date.

V-Mart is an omni retail store chain offering fashion apparel, footwear, home furnishings, general merchandise and kirana.

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