V2 Retail Limited announces Q4, FY2020 results

V2 Retail Limited, one of the India's fastest growing Retail Company, has declared its Audited Financial Results for the Quarter and Year ended March 31, 2020.

Standalone Financials Performance at a Glance:

Revenue:

- The Company has started the quarter with positive SSG of 3% upto March 15, 2020. The outbreak of Covid 19 pandemic and consequent lockdown had impacted the sales and overall SSG, which declined by 18% during Q4 FY20.

- Revenue for Q4 FY20 declined by 21% Y-o-Y in Q4 FY20 from Rs. 1,639 mn to Rs. 1,292 mn. The revenue for FY 20 declined marginally by 6% Y-o-Y in FY20 from Rs. 7,484 mn to Rs. 7,012 mn.

Gross Profit:

Rs. Gross Profit for the quarter declined from Rs. 481 mn to Rs. 295 mn. Gross Profit for FY20 stood at Rs. 1,960 mn as compared to Rs. 2,421 mn for FY19.

EBIDTA:

- EBIDTA for Q4 FY20 stood at Rs. 30 mn as compared to Rs. 43 mn for Q4 FY19. EBIDTA for FY20 stood at Rs. 760 mn as compared to Rs. 469 mn for FY19.

Profit Before Tax:

- Profit Before Tax (PBT) stood at Rs. (155) mn in Q4 FY20 as compared to Rs. 15 mn for Q4 FY19. PBT for FY20 stood at Rs. 105 mn as compared to Rs. 151 mn for FY19.

Profit After Tax (PAT):

- Profit After Tax (PAT) stood at Rs. (116) mn in Q4 FY20 as compared to Rs. 42 mn for Q4 FY19. PAT for FY20 stood at Rs. 101 mn as compared to Rs. 205 mn for FY19.

New Initiatives:

V2 - your favorite Fashion Brand is now ONLINE. We are delighted to announce the launch of our ecommerce portal V2 Kart (www.v2kart.com). Our online store provides our existing and prospective clients with an easier, more intuitive, user friendly shopping and checkout experience.

Others:

- As on March 31, 2020, the Company was having a Net Cash Balance of Rs. 441 mn (Cash & Bank balance less borrowings).

- The Company opened 1 new store during Q4 FY20

- As on March 31, 2020, the Company operates 76 stores spread across 17 states and 71 cities with a total retail area of ~8.4 lac Sq. Ft.

- The Company has closed 2 non-profitable stores during Q1 FY21.

Commenting on the results and performance, Mr. Ram Chandra Agarwal, Chairman & Managing Director said: "We started the quarter on a positive note. We were able to achieve a positive SSG upto March 15, 2020. However, situation changed drastically with the outbreak of COVID 19 pandemic and the resultant lockdown. The consumer sentiment has suddenly changed from positive to cautious and will take some time to return to normalcy. The entire economy is facing a slowdown, retail sector being one of the most impacted sector as people shift their consumption to only essential. We anticipate the situation to stabilise and start turning positive from quarter 3 of this fiscal year.

Companies with strong balance sheet and low leverage like us will not only be able to survive the pandemic, but also bounce back faster. We have also initiated a number of measures to keep our fixed cost under control like rental renegotiations, engaging with suppliers, control over variable cost. We have also put on hold all our capital spends.

As of current date, out of 74 stores, we have received permission to operate 65 stores. We are engaging with the local administration to obtain permission to start operating balance stores. Health and safety of all our customers and employees are of paramount importance and all required precautions are being adhered to.

We have also launched our online retailing platform (www.v2kart.com) to enable our existing and prospective customer to order from their favourite store. We are existed with the initial response.

We see a lot of initiatives being taken by the government for reviving the consumer sentiment, the outcome of which should be visible completely from mid of this financial year.

Shares of V2 RETAIL LTD. was last trading in BSE at Rs.57 as compared to the previous close of Rs. 56.25. The total number of shares traded during the day was 3545 in over 105 trades.

The stock hit an intraday high of Rs. 58.7 and intraday low of 55. The net turnover during the day was Rs. 203016.

Source : Equity Bulls

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