Anand Agarwal, CFO, V-Mart Retail said post-festive the demand definitely looks much more promising than it was a month back. It is a heavy marriage season and along with that, the winter chill is pushing up demand for a lot of winter wear.
Moreover, winter wear is slightly more expensive, and therefore, the average billing size has also gone up, said Agarwal adding that the heartening thing to note is unlike last year, at a similar time, when they were seeing more of home wear and loungewear and comfort were being sold, now they are seeing a welcome trend for occasion wear and festive wear being demanded by the customer. That is aiding the uptick in the average selling prices, as well as the average bill size.
“This gives us a lot of promise that good times are here to stay at least for some time unless there is some spoilsport from the COVID side,” said Agarwal in an interview with CNBC-TV18.
The sales trends have been very positive right from the last quarter results reported. In the last quarter, we reported a 7 percent uptick and so far as well, we have seen a positive trend versus FY20, which is pre-COVID levels, We have been tracking a plus on the pre-COVID levels, he added.
Talking about the outlook going forward, he said, while quarter one was a washout because of the lockdown but as far as quarter three and quarter four is concerned, we should be looking at positive results.
“From our side, we are building up inventory we are making all the right noises as far as the customer interactions are concerned or inventory is concerned or preparations for the upcoming festive period is concerned. We are quite positive and gung-ho on the overall market trajectory,” said Agarwal.
On store additions, he said the company has already added 25 Plus stores so far this year, and are on track to add at least 15 more stores in the second half. We are also looking at locations in South India, which is new territory for us but as an experiment would start rolling out some new stores there.
On profitability, he said historically Q2 has been a loss-making quarter, always but Q3 has always been the biggest quarter for them and so expect to see a turnaround going forward, as they have demonstrated in the past as well.
He said currently they have more than Rs 250 crores of cash sitting on the books. So they are comfortable on the cash position and that there are no debts and neither are they planning to take on any debt or external funding as of now, he added.
For the full discussion, watch the video