V-Mart Retail targets over 50 new stores in FY24, LimeRoad breakeven by FY25

On LimeRoad, the recently acquired online fashion marketplace, Agarwal highlighted a distinct approach. He said the aim is not to build a massive ₹5,000-10,000 crore business but rather to establish a platform that caters to the value fashion requirements of tier two and tier three towns.

As a result, LimeRoad's revenue trajectory is expected to remain within the range of ₹200-250 crore for the full year, primarily through commission revenue.

In a regulatory filing with the exchange, the company said the integration of LimeRoad has been successful, with a 26% quarter-on-quarter (QoQ) increase in platform income. The EBITDA (earnings before interest, tax, depreciation, and amortisation) loss has narrowed by 23% QoQ.

In the second quarter of the fiscal year 2024, the ₹3,369.74 crore market cap V-Mart Retail, posted net sales of ₹549.43 crore, a growth of nearly 9% from ₹506.16 crore sales in the same quarter last year.

The company's EBITDA margin was at 4% for Q2 and 8% year-to-date (YTD), excluding the losses due to LimeRoad.

The quarterly net loss increased fivefold to ₹64.12 crore from ₹11.31 crore in September 2022.

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Originally established as Varin Commercial in accordance with the Companies Act of 2002 in West Bengal, the company took a significant step forward by inaugurating its first store in Ahmedabad in 2003. Some competitors of V-Mart encompass Myntra, Ajio, and Koovs.

V-Mart Retail's shares closed at ₹1,703.90 on November 6, 2023, on the NSE (National Stock Exchange). Over the past six months, the stock has lost close to 20% and it is down nearly 43% over the last 12 months.

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