V2 Retail Ltd (BOM:532867)
₹ 1154.5 -25.25 (-2.14%) Market Cap: 39.93 Bil Enterprise Value: 46.34 Bil PE Ratio: 95.89 PB Ratio: 13.84 GF Score: 67/100

Q2 2025 V2 Retail Ltd Earnings Call Transcript

Oct 25, 2024 / 06:30AM GMT
Release Date Price: ₹1226.25 (-4.99%)

Key Points

Positve
  • V2 Retail Ltd (BOM:532867) reported a strong first half performance in FY25, with revenue from operations standing at INR795 crores, marking a 61% year-on-year growth.
  • The company added 22 new stores in the first half of the year, bringing the total store count to 139, with plans to add 40 more stores in the second half.
  • Same-store sales growth (SSG) was robust at 36% for the first six months, driven by a customer-centric and product-first approach.
  • The company achieved a significant volume growth of 49% in the first six months, with full-price sales contributing 91% compared to 85% in the previous year.
  • V2 Retail Ltd (BOM:532867) has improved its EBITDA for the quarter to INR33.1 crores, a 60% increase from the previous year, with a focus on achieving a 10% pre-Ind AS EBITDA level in the next 2-3 years.
Negative
  • Gross margin for the quarter decreased to 27.3% from 28.1% in the corresponding quarter last year, indicating pressure on profitability.
  • The company experienced elevated employee costs due to recruitment for new store openings, impacting overall expenses.
  • Despite strong sales growth, the EBITDA margin remained relatively flat at 8.7% compared to 8.6% last year, suggesting limited operational leverage.
  • Two stores were closed during the quarter, one due to lack of profitability and another for relocation, highlighting challenges in store performance.
  • The company faces increased competition in the market, which could potentially impact customer acquisition costs and future profitability.
Operator

Ladies and gentlemen, good day, and welcome to V2 Retail Limited Q2 and H1 FY25 earnings conference call.

(Operator Instructions) Please note that this conference 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 discussions during this call contain or may contain forward statements concerning V2 Retail limited business prospects and profitability which are subject to several risks and uncertainties. And the actual results could materially differ from those in such forward-looking statements.

I now hand the conference over to Mr. Akash Agarwal Whole Time Director, V2 Retail. Thank you, and over to you sir.

Akash Agarwal
V2 Retail Ltd - Chief Financial Officer, Whole-time Director

Thank you. Good afternoon, everyone. A very warm welcome to our quarter two and for six months earnings conference call. I hope everyone had an opportunity to look at our results. The presentation and press release has been uploaded on the Stock

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