V-Mart's Q1 profit jumps even as small town demand lags

Investors cheered V-Mart's results, as its shares settled 5.7% higher at ₹807.40 apiece on the BSE on Thursday

- Vaeshnavi Kasthuril

V-Mart Retail Ltd's net profit nearly tripled year-on-year in the first quarter, lifted by cost cuts and improved operational efficiency, even as slow sales at existing stores and weak demand in small cities reflected a broader pressure on consumer spending.

The Kolkata-based value fashion retailer's revenue rose 13% year-on-year to ₹885 crore in the three months through June, its highest quarterly revenue in over two decades. The performance slightly exceeded Motilal Oswal's analyst estimate of a 12% growth.

V-Mart's net profit surged 177% to ₹34 crore in the quarter, despite discretionary demand remaining patchy in the country's small towns.