V-Mart Retail zooms 19% after Q1 net profit more than doubles

The stock hit a new high of Rs 1,459, surges an over 200% so far in 2017, against 18% gain in Sensex

V-Mart Retail zoomed 19% to Rs 1,459 on BSE in intra-day trade after the company reported a more than double net profit of Rs 22 crore in June quarter (Q1FY18), on back of healthy operational performance. It had profit of Rs 9.37 crore in year ago quarter.

V-Mart Retail, a medium-sized hypermarket format retail chain based in New Delhi, had posted net profit of Rs 39.52 crore during the entire previous financial year 2016-17 (FY17).

Operational revenue during the quarter increased 39% to Rs 315 crore from Rs 227 crore in the corresponding quarter of previous fiscal.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) too grew 107% to Rs 37 crore over the previous year quarter.  Ebitda margin expanded 380 bps to 11.75% in Q1FY8 from 7.92% in Q1FY17.

Though the upcoming quarter is the weakest quarter for the Indian retail industry, the company’s business outlook remains positive, V-Mart Retail said in a press release.

The stock is currently trading at its lifetime high and has surged over 200% from Rs 465, in the calendar year 2017. On comparison, the S&P BSE Sensex is up 18% during the same period.

At 10:00 am; it was up 17% at Rs 1,432 on BSE, as compared to 0.36% rise in the benchmark index. The trading volumes on the counter jumped multiple-fold with a combined 199,603 shares changed hands on the BSE and NSE so far.