V-Mart Retail Ltd., the omni-channel value retailer catering to the middle class in Tier-2 and Tier-3 cities, reported a substantial net loss of Rs. 64.12 crore for Q2 FY '24, a sharp increase from a loss of Rs. 11.31 crore in the same quarter of FY '23. The company's financial difficulties stem from operational challenges, despite its sales growth to Rs 549.43 crore in September 2023.
The company's total expenses for the quarter amounted to Rs. 637.84 crore, with revenue rising to Rs. 549.43 crore from Rs. 506.16 crore year-on-year, including operations from LimeRoad, a digital marketplace acquired during the previous year.
However, V-Mart Retail's financial struggles were further evidenced by a significant decrease in EBITDA to Rs. 2.66 crore from Rs. 56.24 crore in September 2022, reflecting the company's operational challenges.
This downturn has been reflected in the company's share rates, which have seen a decline over the past six months and year. As of Monday, shares closed with returns of -19.39% over the past six months and -42.90% over the past year on NSE:VMART.
The recent financial performance illustrates the struggles V-Mart Retail is facing amidst operational challenges, despite its overshadowed sales growth and acquisition of LimeRoad last year.
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