On a consolidated basis, V2 Retail reported net loss of Rs 10.27 crore in Q4 FY21, lower than net loss of Rs 12.08 crore in Q4 FY20.
Net sales rose 46.6% to Rs 189.32 crore in Q4 FY21 from Rs 129.16 crore in Q4 FY20. Pre-tax loss stood at Rs 12.76 crore in Q4 FY21 as against a pre-tax loss of Rs 16.08 crore in Q4 FY20.
V2 Retail has opened 8 new stores and closed 1 non-profitable store during Q4 FY21. As on 31 March 2021, the company operated 95 stores spread across 16 states and 83 cities with a total retail area of 10.0 lakh sq. ft. The same store sales growth (SSSG) for the Q4 FY21 stood at 25%. V2 Retail witnessed continuous improvement in demand till the lockdowns were announced due to second wave of COVID-19 by end March/start of April. Due to lockdown and related restrictions, operations at majority of our stores are impacted during Q1 FY22. Further, its targeted store additions for Q1 FY22 were also delayed due to sudden lockdown.
Commenting on the results and performance, Ram Chandra Agarwal, the chairman and managing director of V2 Retail, has said that: "The company witnessed robust demand trends across stores amidst steadily improving consumer confidence and a declining COVID-19 graph till end of March 2021. However, due to second wave of COVID-19 and resultant lockdown, the crucial first quarter of FY 2022 has been lost. Despite the challenging environment, we saw increasing acceptance for our products via our omni channel presence."
"With the prediction of normal monsoon and resultant improvement in agricultural incomes, we believe that there would be significant improvement in demand from second half of the financial year 2022. Our entire team is geared up to accomplish our targeted improvements in store performance, increasing our private label contribution, further penetration of our omni-channel presence. We believe that momentum should pick up significantly post monsoon and is expected to gain further traction in the upcoming festive & wedding season starting from end September."
"In light of the above, the company is confident of growing well ahead of medium-term aspirations in the next few quarters. We are confident that our growth and profitability will continue to accelerate on the back of sustained focus on customer experience, merchandise selection, strong brand recall and our omnichannel presence. Our online retailing platform (www.v2kart.com) has been receiving good response. The company is also focusing on Digital initiatives to improve consumer engagement, drive sales through E-commerce for internet-savvy consumers and build Data Analytics capabilities."
"Continuing with our philosophy of deleveraged growth, we have expanded our store network from 76 stores as at 31 March 2020 to 95 stores as at 31 March 2021. We will keep on exploring new stores opportunities. The company has invested in start of art warehousing infrastructure to keep pace with the growing stores opportunities as well as cater to increased focus on omni channel."
V2 Retail is a retail company in India. It offers a portfolio of products, including apparel and life style products. The company has a strong presence in Northern & Eastern India. The company caters to the neo middle class group of population living in Tier 2 and Tier 3 cities.
Shares of V2 Retail slipped 1.98% to Rs 126.30 on BSE. The strip traded in the range of Rs 125 to Rs 127.25 so far.
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