V-Mart Retail (VMART) Q4 14/15 earnings summary

Executive summary

• FY15 delivered 25% growth in revenue and EBITDA and 49% growth in PAT, alongside 19 store openings and a 21% increase in store count to 108.

• The value-retail model remained focused on Tier II and Tier III markets, with growth supported by footfalls, customer conversion, inventory productivity and cost control.

Financial highlights

• Total revenue was ₹7,223.98m vs ₹5,756.73m in FY14; revenue from operations was ₹7,205.02m vs ₹5,749.59m.

• EBITDA rose 25% to ₹660.23m from ₹529.61m; PAT increased 49% to ₹373.67m from ₹251.57m.

• Reported profit before tax after extraordinary items was ₹553.30m; this included an ₹18.18m extraordinary loss from flooding at the Srinagar store.

• Employee costs rose 28% to ₹489.36m; other expenses increased 24% to ₹995.75m, driven in part by higher rent and power/fuel costs.

Outlook and guidance

• Planned expansion into West Bengal and Odisha, with continued measured rollout in Tier II and Tier III cities.

• Growth plans emphasize store productivity, same-store sales, lower operating costs, supply-chain efficiencies and capex optimization.

• Management highlighted investments in technology and real-time information systems to improve decision-making, controls and operating efficiency.