This Indian value retail chain operator is in focus after it reported its Q4 FY25 results with a Net Profit decline of 87.41 percent and an EBITDA Margin decline of 730 bps. Following the results, the Stock hit the 5 percent lower circuit mark.
With a market capitalisation of Rs. 6,563 Crore, the stock of V2 Retail opened at Rs. 1,960, down 0.79 percent from yesterday’s close, and after opening, it made a low of Rs. 1,877.05, down 5 percent, hitting the lower circuit mark. Additionally, the Yearly return for the stock is 255 percent, and the past 5-year return is an impressive 3,480 percent.
Financial Highlights
The company reported a 68.58 percent YoY increase in revenue from Rs. 296 Crore in Q4FY24 to Rs. 499 Crore in Q4FY25. On a QoQ basis, the company reported a decrease of 15.56 percent in revenue from Rs. 591 Crore in the previous quarter.
Their Net profit saw an increase of 78.88 percent YoY from Rs. 3.60 Crore to Rs. 6.44 Crore for the same period. On a QoQ basis, the company reported a decrease of 87.41 percent in Net profit from Rs. 51.19 Crore in the previous quarter.
The sharp decline in net profit can be attributed to a 15.56 percent drop in revenue, while the expenses did not decrease proportionately. Further, there was an inventory gain that helped reduce overall expenses, but it was not sufficient to offset the impact of lower revenue and relatively stable or rising fixed costs. As a result, net profit declined significantly despite the inventory-related benefit.
The EBITDA Margin saw a decline of 730 bps from 18.90 percent in Q3FY25 to 11.60 percent in Q4FY25. On a YoY basis, the EBITDA Margin increased by 100 bps from 10.60 percent in Q4 FY24 to 11.60 percent in Q4 FY25.
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About the Company
V2 Retail Limited is an Indian value retail chain that operates a network of stores offering affordable fashion apparel and general merchandise. Headquartered in New Delhi, the company primarily targets price-sensitive consumers in tier 2 and tier 3 cities.
The company operates under the “V2” brand and focuses on providing low-cost fashionwear for men, women, and children, as well as accessories, footwear, home furnishings, and lifestyle products. Its retail model emphasizes value-for-money and volume-driven sales, making it popular in semi-urban and rural markets where branded retail penetration is still growing.
Written By Abhishek Das
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