V2 Retail (V2RETAIL) Q4 02/03 earnings summary

Executive summary

• FY ended 31 Mar 2003 net sales were Rs 499.6m; profit after tax was Rs 5.895m. Management expected turnover to exceed Rs 1bn next year, barring unforeseen circumstances.

• Expansion continued with a manufacturing-unit takeover effective 31 Mar 2003 and a New Delhi mega-store opened after year-end; two more store deals were finalized.

Financial highlights

• Net sales were Rs 499.592m versus Rs 140.957m in FY 2001-02; consignment sales of Rs 174.048m were excluded from reported sales.

• Profit before depreciation was Rs 17.163m; depreciation was Rs 9.003m and profit before tax was Rs 8.161m.

• Profit after tax was Rs 5.895m after current tax provision of Rs 1.760m and deferred tax expense of Rs 0.505m.

• Consignment commission income was Rs 34.810m; total other income was Rs 35.636m.

Outlook and guidance

• Management expected next-year turnover to exceed Rs 1bn, subject to unforeseen circumstances; the takeover’s full sales and profitability impact was expected in subsequent years.

• New Delhi mega-store opened after year-end, with deals finalized for two additional stores.