V2 Retail (V2RETAIL) Q4 01/02 earnings summary

Executive summary

• First reporting period ran from 23 Jul 2001 to 31 Mar 2002; two garment businesses were taken over as going concerns, and seven megastores operated at year-end.

• Net profit after tax was Rs 2.62 crore; no dividend was proposed, with funds retained for expansion.

Financial highlights

• Sales were Rs 14.10 crore; other income was Rs 10.60 lakh, and profit before tax was Rs 28.35 lakh.

• Profit after tax was Rs 26.18 lakh after a Rs 2.17 lakh tax provision; profit before depreciation was Rs 42.92 lakh and depreciation was Rs 14.57 lakh.

• Operating, administrative and other expenses totaled Rs 2.64 crore; purchase costs were Rs 13.89 crore and acquired-on-takeover costs were Rs 4.02 crore.

Outlook and guidance

• Management expected turnover to exceed Rs 75 crore in the next year, barring unforeseen circumstances.

• Sales and profitability were expected to reflect the fuller impact of takeovers and store openings in forthcoming years, as most occurred late in the period.