Vishal Mega Mart Limited, a prominent player in India's value retail sector, reported robust financial results for the fourth quarter (Q4) and the full fiscal year 2024-25 (FY25). The company's performance was marked by significant growth in revenue, profitability, and operational efficiency, underscoring its strategic focus on expansion and customer-centric offerings.
Q4 FY25 Financial Highlights
Revenue: Vishal Mega Mart's revenue from operations for Q4 FY25 stood at Rs 2,547.9 crore, reflecting a 23.2% year-on-year (YoY) increase from Rs 2,068.9 crore in Q4 FY24.
EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose by 42.5% YoY to Rs 357 crore, with the EBITDA margin improving to 14% from 12.1% in the previous year.
Net Profit: The company's net profit for the quarter increased by 88% YoY to Rs 115.1 crore, up from Rs 61.2 crore in Q4 FY24.
Same-Store Sales Growth (SSSG): Adjusted SSSG for Q4 FY25 was reported at 13.7%, indicating strong performance across existing stores.
FY25 Annual Performance
Revenue: For the full fiscal year, revenue from operations reached Rs 10,716.3 crore, marking a 20.2% YoY growth from Rs 8,911.9 crore in FY24.
EBITDA: EBITDA for FY25 stood at rs 1,530.2 crore, a 22.6% increase from Rs 1,248.5 crore in the previous year, with the EBITDA margin improving to 14.3%.
Net Profit: Net profit for the year was Rs 632 crore, up 36.8% from Rs 461.9 crore in FY24.
Adjusted SSSG: The adjusted SSSG for FY25 was 12.3%, reflecting consistent growth in store performance.
Operational Expansion
Vishal Mega Mart continued its aggressive expansion strategy during FY25:
Store Network: The company added 85 net new stores during the year, bringing the total store count to 696 across 458 cities.
Retail Space: Total retail area expanded to approximately 12.2 million square feet, enhancing the company's footprint in the Indian retail market.
Product Mix and Private Labels
Vishal Mega Mart's product strategy focuses on offering value-driven merchandise:
Category Contribution: In FY25, apparel contributed 44% to revenue, general merchandise 28%, and FMCG 28%.
Private Labels: The company's private label products accounted for 73.1% of total revenue, up from 71.8% in FY24, highlighting a strategic emphasis on in-house brands.
Digital Initiatives
Embracing digital transformation, Vishal Mega Mart expanded its quick commerce platform:
Management Commentary
Gunender Kapur, Managing Director and CEO, stated, "The company delivered strong operational and financial performance in Q4FY25 and FY25, reflecting sustained momentum across categories. Our performance underscores the strength of our unique strategy and our commitment to making aspirations affordable."
Market Response
Following the announcement of the Q4 FY25 results, Vishal Mega Mart's share price surged by 10%, hitting the upper circuit at Rs 118.35 on the BSE, indicating strong investor confidence.
Outlook
With a robust financial foundation, strategic expansion plans, and a focus on private labels and digital initiatives, Vishal Mega Mart is well-positioned to capitalize on growth opportunities in India's dynamic retail landscape.
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