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Indian apparel retailer V Mart's sales almost doubles in July-Sept qtr
19 Nov 21 2 min read
Second quarter (Q2) sales at V Mart Retail, India's leading value fashion retailer, shot up 93 per cent to ₹338 crore compared to the sales of ₹176 crore in the same period of last fiscal. The improved sales and better supply chain management initiatives also boosted EBITDA to ₹21 crore, which traditionally remains a subdued and a small quarter impacted by end of season sales and lower margins.
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“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,” Lalit Agarwal, chief managing director at V Mart, said in a press release.
According to the company, the acquisition of 74 Unlimited stores in South India, effective from September 1, helped the sales recovery to 107 per cent for the quarter, versus pre-Covid levels.
“The GST hike proposed from the current 5 per cent to 12 per cent from January 1, 2022, on apparels and footwear in the sub-1000 rupees range, could impact margins and future sales as 88 per cent of the company’s inventory and sales fall in this bracket. The significant increase in yarn prices would further pose a bit of challenge in keeping maximum retail price’s (MRP) to our usual competitive levels,” Agarwal added.
However, with the early onset of winters, and the string of festival season ahead, Agarwal expressed confidence in projecting strong sales, especially with consumer sentiment bouncing back to normal and the government’s continued vaccination drive, as the release mentioned.
Fibre2Fashion News Desk (JL)
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