V-Mart Retail Ltd announced its audited financial results for the year ending March 31 2017.
During the year FY’17, there is an increase in revenue by 24 per cent to Rs 1,001.72 crore, EBITDA by 33 per cent to Rs 82.58 crore and PAT by 43 per cent to Rs 39.53 crore, YoY. During three months period ending March 2017, the company reported an increase in revenue by 41 per cent to Rs 251.82 crore, EBITDA by 160 per cent to Rs. 13.33 crore and PAT by 934 per cent to Rs 4.99 crore YoY. The Board of Directors has recommended a dividend of 12.5 per cent for FY17. The company now runs 143 stores under the V-Mart brand across Delhi, UP, Uttarakhand, Haryana, Rajasthan, Punjab, Bihar, Jharkhand, Gujarat, Maharashtra, Madhya Pradesh, Orissa, West Bengal and J&K.
Speaking on the occasion, CMD, V-Mart Retail Ltd, Lalit Agarwal thanked all stakeholders including investors, employees and vendors for achieving Rs 1,000 crore of revenue after 13 years of long journey. He said that we have many opportunities ahead to position the company for long-term growth while keeping our attention focused on operating discipline.
He contributed to the company’s growth in 2016-17 to increase the Same Store Sales Growth to 13 per cent YoY, opening of 21 new stores during the year, the smart ATM initiative launched by the company to help customers get cash from V-Mart stores during demonetization which helped gain significant new customers for the company and gaining operating efficiencies through automation in supply chain.
For 2017-18, the company aims to further seek improvements in per square feet sales, opening of new stores, launching of new collections for festivities, target marketing for the key customer segments in rural and urban areas and improving fashion offerings at even better price points as company’s key drivers for growth.
FY18 will be year for customer connect. V-Mart would strongly focus on enhancing customer shopping experience making it a distinguishing factor. The company’s newly launched customer loyalty program – Value Club is further being expanded to offer significantly better value to the customer base.
The company feels that the upcoming changes in trade laws around GST are an area of concern and may prove to be inflationary to the value conscious customers in the transition phase. However, the company is confident of the move to the new tax regime and it hopes that this should boost the economy and better the confidence level among the business and the consumers alike thereby increasing consumption. There has been renewed interest and increase in retail sales in the state of UP after the new Government has come to power and the company anticipates higher consumption and demand after the waiver of loans for the farmers in the state. UP accounts for more than 50 per cent of the company’s revenues.