A 6-fold increase in losses in Q2 causes V-Mart shares to drop 2%

 

A 6-fold increase in losses in Q2 causes V-Mart shares to drop 2%

In the July–September quarter, earnings before interest tax, depreciation, and amortization decreased by 98% year over year to Rs 1 crore.

At 12:37 PM, V-Mart Retail shares dropped down 2.39 percent to Rs 1,663.1. The company's losses during the July-September quarter increased by over six times, from Rs 13 crore to Rs 64 crore in Q2FY24.

In Q2FY24, the company's sales increased by 9% year over year to Rs 549 crore. During the July–September quarter, profits before interest, tax, depreciation, and amortization decreased by 98% year over year to Rs 1 crore. The change in the holiday season from Q2 to Q3, which boosted Durga Puja and Dusshera revenues even more, was the company's justification for this.

The business said in an exchange statement that "the ongoing festive period has been advancing well with good foot traffic and sales growth in all major markets."

Nonetheless, there was positive news: in Q2FY24, foot traffic rose 13% YoY. Tier 1 cities had a 2 percent rise in sales, while Tier 2 cities saw a 3 percent gain. Nonetheless, over the same time frame, sales in Tier 3 cities decreased 5% year over year.

As part of its retail growth goal, the firm established eight new locations in Q2 and another thirteen in Q3, for a total of 450 locations throughout India as of right now.

V-Mart is a chain of general products, home furnishings, fashion clothes, shoes, and kirana stores.