V-Mart Retail (VMART) Q4 18/19 earnings summary

Executive summary

• FY19 total revenue rose 17% YoY to ₹143,967 lakh; EBITDA was ₹13,293 lakh, while PAT fell 21% to ₹6,163 lakh, including a ₹979.94 lakh IL&FS investment impairment.

• Expanded to 214 stores across 170 towns and 17 states; opened 44 stores, entered Assam, Meghalaya and Himachal Pradesh, and served over 35 million annual footfalls.

Financial highlights

• Total revenue reached ₹143,967 lakh versus ₹122,651 lakh in FY18; net sales were ₹143,217 lakh versus ₹122,097 lakh, up 17% YoY.

• EBITDA was ₹13,293 lakh versus ₹13,279 lakh; PAT was ₹6,163 lakh versus ₹7,770 lakh, down 21% YoY as reported.

• PBT was ₹9,981 lakh versus ₹11,247 lakh; this included a ₹979.94 lakh exceptional charge for the IL&FS commercial-paper impairment.

• Operating cash flow increased to ₹7,634 lakh from ₹5,771 lakh; cash and cash equivalents were ₹1,232 lakh at FY-end.

Outlook and guidance

• Strategic targets: store-level EBITDA of 15%, 5% corporate loading, net EBITDA of 10% and PAT of 4–5%; the stated aim is to sustain this range.

• Growth priorities include accelerating store expansion, improving customer experience through consumer insight and technology, and building technology capabilities for scalable operations.

• Cluster-based expansion will continue, with focus on Bihar, Uttar Pradesh and other underpenetrated markets; a second warehouse closer to eastern markets was being prepared.

• Omnichannel capability, an integrated CRM and loyalty platform, data analytics and digitalisation were central to the next phase of growth.