V-Mart Retail (VMART) Q4 12/13 earnings summary

Executive summary

• FY13 revenue rose 36% to ₹3,836.49 mn; net profit increased 72.2% to ₹180.04 mn, with profit growth outpacing revenue for the fourth consecutive year.

• Operations ended FY13 with 69 stores across 51 cities and 10 states/UTs; retail area was 5.58 lakh sq. ft.

Financial highlights

• Revenue from operations was ₹3,834.59 mn versus ₹2,818.72 mn in FY12; total revenue was ₹3,836.49 mn versus ₹2,819.54 mn.

• EBITDA rose 41% to ₹399.72 mn; profit before tax was ₹266.07 mn and net profit ₹180.04 mn, versus ₹104.55 mn in FY12.

• Basic and diluted EPS were ₹12.34, versus ₹7.50 in FY12; cash profit increased 57.33% to ₹256.22 mn.

• Operating cash flow was ₹97.82 mn versus ₹168.10 mn; investing cash outflow was ₹621.56 mn, while financing cash inflow was ₹666.39 mn.

Outlook and guidance

• FY14 revenue growth guidance was 35–40%, with plans to add about 25 stores; management expected post-tax profit to grow faster than revenue.

• Planned FY14 hiring, training and orientation to build capacity may raise manpower costs temporarily before they stabilise.

• Expansion plans retain the existing value-retail model, with focus on Tier-II and Tier-III markets and controlled store rollout.