Neutral V-Mart Retail For Target Rs. 1,905 - Motilal Oswal Financial Services Ltd
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VMart 3QFY24 pre-quarter update
Revenue grew 14.4% YoY (in line), driven by footprint addition; recovery seen in the core segment.
? Consolidated revenue grew 14.4% YoY to INR8.9b (in line), mainly driven by footprint addition.
? Overall SSSG stood at 4% YoY for 3QFY24
? SSSG for VMart (core) and Unlimited stood at 5% and 1%, respectively.
? The quarter included revenue from Limeroad to the tune of ~INR170m (- 22% QoQ). Adjusted for this, revenue for VMart (including Unlimited stores) was up ~12% on YoY basis.
? Considering 87 stores for Unlimited with revenue throughput of ~INR1,700 per sqft (1% SSSG), revenue for Unlimited stood at ~INR1.4b (Calculated), up ~7% on YoY basis.
? The company opened 20 new stores (16 V-Mart stores and 4 Unlimited stores) and closed 3 stores during the quarter, taking the total store count to 454.
Management commentary
? The total store count stood at 454, with 367 V-Mart stores and 87 Unlimited stores.
? The closed stores include one store each in Goa, Assam, and Bihar.
? The quarter saw a delayed onset of winter as temperatures remained higher compared to the previous year.
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