V2 Retail Ltd's Q3FY25 Quarter Results
- 24 Jan 2025
Result Summary
- V2 Retail Ltd reported a 54.8% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 57.2%.
- Its expenses for the quarter were up by 36.0% QoQ and 51.6% YoY.
- The net profit decreased 2752.3% QoQ and increased 117.2% YoY.
- The earnings per share (EPS) of V2 Retail Ltd stood at 14.8 during Q3FY25.
Financial Statments for Q3FY25
| (₹ crores) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 592.13 | 382.52 | 376.79 | 54.8% | 57.2% |
Total Expenses | 523.61 | 384.95 | 345.38 | 36.0% | 51.6% |
Profit Before Tax | 68.53 | -2.43 | 31.41 | -2920.2% | 118.2% |
Tax | 17.34 | -0.49 | 7.84 | -3638.8% | 121.2% |
Profit After Tax | 51.19 | -1.93 | 23.57 | -2752.3% | 117.2% |
Earnings Per Share | 14.80 | -0.60 | 6.80 | -2566.7% | 117.6% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
V2 Retail Ltd is a prominent player in the Indian retail industry, focusing primarily on the value retail segment. The company operates a chain of retail stores across various states in India, offering a diverse range of products primarily in the apparel category, catering to the fashion and lifestyle needs of its customers. V2 Retail has carved a niche for itself by providing affordable fashion to the masses, emphasizing quality and current trends. The company has been expanding its store network and enhancing its product offerings to capitalize on the growing demand for value fashion in the country. Recent developments in the retail sector, including shifts in consumer behavior and digital transformation, are areas where V2 Retail is actively engaging to maintain its market position.
Revenue
In Q3FY25, V2 Retail Ltd reported a total income of ₹592.13 crores, marking a significant increase compared to ₹382.52 crores in Q2FY25 and ₹376.79 crores in Q3FY24. This demonstrates a robust quarter-over-quarter growth of 54.8% and a year-over-year increase of 57.2%. The substantial rise in total income in the current quarter is indicative of the company's successful expansion strategies and possibly improved consumer spending patterns. This growth trajectory reflects the company's efforts to enhance its product offerings and expand its market reach. The increase in revenue is a key metric for understanding the company's operational scale and market penetration during this period.
Profitability
The profitability metrics for V2 Retail Ltd in Q3FY25 show a significant turnaround from the previous quarter. The company reported a profit before tax of ₹68.53 crores in Q3FY25, a stark contrast to the loss of ₹2.43 crores in Q2FY25, and a positive comparison to the profit of ₹31.41 crores in Q3FY24. This represents an extraordinary quarter-over-quarter change of -2920.2% and a year-over-year increase of 118.2%. The tax expense for the quarter was ₹17.34 crores, up from a tax credit of ₹0.49 crores in Q2FY25 and ₹7.84 crores in Q3FY24, which shows a similar trend in terms of percentage change. Consequently, the profit after tax stood at ₹51.19 crores, compared to a loss after tax of ₹1.93 crores in Q2FY25 and a profit of ₹23.57 crores in Q3FY24. The earnings per share also reflected this growth, increasing to ₹14.80 from a negative ₹0.60 in the previous quarter and ₹6.80 a year ago. These figures highlight the company's improved profitability in the current quarter.
Operating Metrics
V2 Retail Ltd's operating metrics for Q3FY25 reveal a significant increase in total expenses, which rose to ₹523.61 crores from ₹384.95 crores in Q2FY25 and ₹345.38 crores in Q3FY24. This marks a quarter-over-quarter increase of 36.0% and a year-over-year rise of 51.6%. Despite the increase in expenses, the company's revenue growth has outpaced the rise in expenses, contributing to improved profitability. The operating performance in this quarter indicates substantial growth in the company's core activities, reflected by the higher expenses incurred, which may be associated with expansion initiatives or increased operational scale. The financial data demonstrates the company's capacity to manage its operational costs while achieving significant revenue gains, as evidenced by the substantial improvements in profitability metrics.
