V2 Retail (V2RETAIL) Q1 24/25 earnings summary

Executive summary

• Achieved record Q1 FY25 sales with revenue up 57% year-over-year to ₹415 crore and PAT up 162% to ₹16.3 crore, driven by strong same-store and volume growth.

• Opened 10 new stores in Q1 FY25, bringing the total to 127 across 17 states and 100+ cities, focusing on underserved urban and rural markets.

• Strategic focus on private label expansion, operational excellence, technology adoption, and value-driven fashion to drive sustainable growth.

• Unaudited standalone and consolidated financial results for Q1 FY25 were reviewed and approved by the Board on 30 July 2024.

• Statutory auditors issued a modified review report, highlighting a qualification regarding reconciliation of physical verification of property, plant, and equipment.

Financial highlights

• Q1 FY25 consolidated revenue was ₹415 crore, with gross profit at ₹120.2 crore (margin 29.0%) and EBITDA at ₹55.5 crore (margin 13.4%).

• PAT for Q1 FY25 was ₹16.3 crore (margin 3.9%), up from ₹6.24 crore in Q1 FY24.

• Standalone revenue for Q1 FY25 was ₹41,503.29 lakhs, with net profit at ₹1,586.19 lakhs.

• Inventory at the end of June was ₹43.9 crore, with payables at ₹25.1 crore.

• Basic and diluted EPS for Q1 FY25 stood at ₹4.59 (standalone) and ₹4.72 (consolidated).

Outlook and guidance

• Targeting 30%-40% year-on-year revenue growth and similar EBITDA growth for FY25, with a PAT margin guidance of 4.5%.

• Pre-Ind AS EBITDA margin targeted at 7%-8% for FY25, rising to 8%-9% in subsequent years.

• ROE expected to be around 20%-22%.

• Same-store sales growth guidance of 15%-20% for the next nine months, with a long-term target of 10% annually.

• Management is confident about the recoverability of a significant advance related to an advertisement contract.