Buy V - Mart Retail Ltd For Target : Rs.2,600 - Motilal Oswal Financial Services
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Revenue up 16% YoY (in line); LFL growth remains flat YoY
* Consolidated revenue at INR6.8b was up ~16% on a YoY basis (in line), mainly driven by footprint addition.
* The quarter included revenue from Limeroad to the tune of ~INR170m (up 44% QoQ), which was integrated from Nov’22. Adjusted for this, revenue for VMart (including Unlimited stores) was up ~13% on a YoY basis with revenue/sqft of INR1761/sqft (quarterly). This is 2% higher YoY, but yet below pre-covid levels.
* Considering 82 stores for Unlimited and an estimated revenue throughput of ~INR1500/sqft (quarterly), the revenue for Unlimited stood at ~INR1.3b (Calculated), indicating a 20% share in the consolidated revenues.
* Adjusting for Unlimited stores, VMart revenues (excluding Unlimited) grew 13% YoY, with revenue/sqft of ~INR1700, i.e., 3% lower YoY.
* The company has opened nine new stores and closed one store in 1QFY24, taking the total store count to 431 stores (437 est).
Other Highlights
* The store count included 349 stores under V-Mart and 82 stores for Unlimited.
* The nine new stores include three stores in Bihar, two in Uttar Pradesh, one in West Bengal and one store in Madhya Pradesh, Andhra Pradesh, and Rajasthan each.
* Income from LimeRoad (digital marketplace) represented the commission income charged from sellers on the Net merchandising Value (NMV) of INR440m (up 42% QoQ).
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