Earnings Before Interest, Depreciation, Tax, and Amortisation (EBIDTA) for H1 FY25 stood at ₹88.5 crore as compared to ₹55.5 crore in H1 FY24, registering a growth of 60 per cent on Y-O-Y basis. EBIDTA margin stood at 11.1 per cent for H1 FY25 as compared to 11.2 per cent for H1 FY24, as per a press release by V2 Retail.
V2 Retail Limited reported a 61 per cent YoY growth in H1 FY25 revenue, reaching ₹795 crore, with PAT soaring by 2,551 per cent.
Operating 139 stores, the company achieved 36 per cent same-store sales growth and a 49 per cent volume increase.
Chairman Ram Chandra Agarwal credits strategic expansion, customer focus, and affordable fashion for the robust performance.
The profit after tax (PAT) for the H1 FY25 stood at ₹14.4 crore as compared to ₹0.5 crore in H1 FY24, registering a growth of 2,551 per cent on Y-O-Y basis. The cost of goods sold (COGS) in the H1 FY25 was ₹571.0 crore, an increase from ₹349.2 crore in H1 FY24.
As on September 30, 2024, the company operates 139 stores with a total retail area of ~14.82 lakh square feet. The company also added net twenty-two stores in the first half of FY25 and saw healthy same store sales growth of 36 per cent in H1 FY25 despite higher base and general industry slowdown, added the press release.
The company also achieved a robust volume growth of 49 per cent in H1 FY25. The maximum retail price (MRP) sales contributed 91 per cent in H1 FY25 as compared to 85 per cent in H1 FY24.
Performance for Q2 FY25
In the second quarter (Q2) of FY25 revenue reached ₹380.0 crore, a 64 per cent increase from ₹231.3 crore in Q2 FY24 and the gross profit in the Q2 FY25 was ₹103.8 crore, with a gross margin of 27.3 per cent, down from 28.1 per cent in Q2 FY24. The Q2 FY25 EBIDTA stood at ₹65.0 crore, marking a significant increase from ₹33.1 crore in Q2 FY24. The cost of goods sold in Q2 FY25 were of ₹276.2 crore, up from ₹166.4 crore in Q2 FY24 and the PAT was ₹19.9 crore, compared to a loss of ₹1.9 crore in Q2 FY24.
Commenting on the results and performance, Ram Chandra Agarwal, chairman & managing director said: “The first half of the fiscal year has been very reassuring as we continue to deliver robust performance after a historic FY24. Our outstanding performance is a testament to the success of our strategic initiatives, which have driven excellence in innovative product development; enhanced store experiences; exceptional customer satisfaction.”
“At V2 Retail, our mission is to democratise fashion by offering high-quality, trendy apparel at affordable prices to value-conscious consumers across all tiers of cities. We achieve this through operational excellence, strategic expansion, competitive pricing, a customer-centric approach, and the strategic use of technology. Our diverse product range, competitive pricing and exceptional shopping experience ensure that we provide significant value to our customers. As we continue to grow and innovate, we remain committed to making fashion accessible to all, uplifting communities, and driving sustainable growth. By focusing on penetrating underserved rural markets and maintaining a strong presence in tier I and tier II cities, we reach a diverse customer base alongside understanding and responding to the unique preferences and needs of our customers across different regions through localised-2- product offerings and personalised shopping experiences has given us the edge compared to others,” added Agarwal.
Fibre2Fashion News Desk (SG)
