V-Mart Retail (VMART) Q4 13/14 earnings summary

Executive summary

• FY14 revenue rose 50% YoY to ₹5,749.59 million; PAT increased 39.73% to ₹251.57 million despite subdued consumer sentiment and a 4.7% Indian GDP growth rate.

• Expansion-led growth: 23 stores opened, store count increased 29%, retail area 27%, footfalls 31.58%, and fashion same-store sales growth reached 12%.

Financial highlights

• Revenue from operations was ₹5,749.59 million, up from ₹3,834.59 million in FY13; EBITDA reached ₹544.96 million, up 36% YoY.

• PAT was ₹251.57 million versus ₹180.04 million; cash profit rose 40.70% to ₹360.52 million.

• EPS was ₹14.01 versus ₹12.34; reported gross profit margin was 29.72%, versus 29.73% in FY13.

• EBITDA margin was 9.47%; revenue from operations comprised ₹5,741.07 million from product sales and ₹8.53 million of other operating revenue.

Outlook and guidance

• FY15 revenue growth targeted at 30–35%, with ~25 new stores planned; the existing value-retail model was to continue without a strategic deviation.

• Growth prospects were linked to Tier-II/III consumption, organised retail expansion, higher disposable income, urbanisation and supportive retail FDI policy.