V-Mart Retail Limited, a leading retail chain catering to smaller towns in India, reported a 12% year-on-year growth in its revenue from operations, with a total of Rs. 668 crore in Q4 FY24 compared to Rs. 594 crore in Q4 FY23.
V-Mart, the company's primary retail operation, witnessed a 12% increase in revenue, rising from Rs. 582 crore in Q4 FY23 to Rs. 653 crore in Q4 FY24. LimeRoad, the company's digital marketplace acquired in November 2022, contributed Rs. 15 crore to the total revenue, representing a 24% growth compared to the Rs. 12 crore reported in the same quarter last year.
The same-store sales growth (SSSG) for the quarter stood at 6%, with V-Mart registering a 4% growth and Unlimited, a retail brand focused on South India, achieving a 13% growth. The commission income from LimeRoad's digital marketplace amounted to Rs. 15 crore, derived from a Net Merchandising Value (NMV) of Rs. 36 crore.
In terms of store count, V-Mart Retail opened 9 new stores during the quarter, with 8 under the V-Mart brand and 1 under Unlimited. However, the company also closed 19 stores across various states, resulting in a net reduction of 10 stores. As of March 31, 2024, the company operates a total of 444 stores, with 365 under V-Mart and 79 under Unlimited.
In the previous, third quarter, the company reported a 14% year-on-year growth in revenue, with Rs. 889 crore. The SSSG for Q3 FY24 was 4%, with V-Mart at 5% and Unlimited at 1%. LimeRoad's contribution to the revenue in Q3 FY24 was Rs. 17 crore, with an NMV of Rs. 41 crore.
For the full financial year 2023-24, V-Mart Retail reported a 13% year-on-year growth in revenue, reaching Rs. 2,784 crore compared to Rs. 2,465 crore in the previous financial year. V-Mart's revenue grew by 11%, while LimeRoad's contribution increased significantly by 319% compared to the previous year.
The company was founded in 2002 by Lalit Agarwal and has since grown to become a prominent player in the value retail segment, offering affordable fashion apparel, footwear, and accessories for men, women, and children.
Over the years, V-Mart has expanded its presence across various states in India, with a strong focus on northern and eastern regions. The company's business model revolves around providing quality products at competitive prices, catering to the aspirational needs of the middle-class population in smaller cities and towns.
Like many other retail businesses, V-Mart faced significant challenges during the post-COVID slowdown. The pandemic-induced lockdowns and restrictions on movement severely impacted the company's operations and sales. With physical stores being closed for extended periods and consumer spending taking a hit, V-Mart struggled to maintain its revenue growth and profitability.
During the financial year 2020-21, which was heavily affected by the pandemic, V-Mart reported a 36.4% decline in revenue from operations, amounting to Rs. 1,433 crore compared to Rs. 2,253 crore in the previous year. The company also incurred a net loss of Rs. 35.4 crore in FY21, as opposed to a net profit of Rs. 111.6 crore in FY20.
To navigate through the crisis, V-Mart implemented various cost-cutting measures, such as negotiating rent waivers, reducing employee costs, and optimizing inventory management. The company also focused on strengthening its e-commerce presence and accelerating its digital transformation initiatives to adapt to the changing consumer behavior.
As the pandemic situation gradually improved and restrictions eased, V-Mart began to witness a recovery in its sales and footfall. The company's strategic location in Tier-2 and Tier-3 cities, where the impact of the pandemic was relatively less severe compared to metro cities, helped it to bounce back faster.
In November 2022, V-Mart acquired LimeRoad, a digital marketplace platform, to further strengthen its online presence and tap into the growing e-commerce market. This acquisition has helped the company to diversify its revenue streams and reach a wider customer base.
In 2023, V-Mart Retail adopted various discounting strategies to attract customers and boost sales in the post-pandemic scenario. The company introduced a range of promotional offers, such as end-of-season sales, festival discounts, and special occasion deals, to incentivize customers to visit their stores and make purchases.