Q1 2025 V2 Retail Ltd Earnings Call Transcript
Key Points
- V2 Retail Ltd (BOM:532867) reported the highest ever quarterly sales in Q1 FY25, with a 162% increase in year-on-year PAT.
- The company opened 10 new stores during the quarter, bringing the total to 127 stores, with plans to add 40 to 50 more stores this year.
- Same-store sales growth was robust at 37% in Q1 FY25, indicating strong performance across existing stores.
- Revenue from operations stood at INR415 crores, registering a growth of 57% on a YoY basis.
- EBITDA for the quarter was INR55.5 crores, up 56% YoY, with an EBITDA margin of 13.4%.
- Gross margin stood at 29% for Q1 FY25, which is relatively low compared to industry standards.
- The company’s strategy to pass on cost benefits to customers may limit gross margin improvements.
- Employee costs have increased due to new store additions, which could impact profitability if not managed well.
- The company has a current debt of INR78 crores, primarily used for bill discounting and working capital.
- There is significant competition from other value fashion retailers like Zudio and new entrants from Reliance, which could impact market share.
Ladies and gentlemen, good day, and welcome to V2 Retail Limited Q1 FY25 earnings call. (Operator Instructions) Please note that this call is being recorded.
Before we begin, a brief disclaimer. The presentation which V2 Retail Limited has uploaded on the stock exchange and their website, including the discussion during this call contain or may contain certain forward-looking statements concerning V2 Retail Limited business prospects and profit (inaudible), which are subject to several risks and uncertainties and actual results could materially differ from those in such forward-looking statements.
Ladies and gentlemen, I now hand the conference over to Mr. Akash Agarwal, Whole Time Director, V2 Retail. Thank you, and over to you, sir.
Good afternoon, everyone. A very warm welcome to our quarter one FY25 earnings conference call. Along with me, I have Manshu Tandon, our CEO, and Marathon Capital, our Investor Relations team.
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