V2 Retail Limited — Earnings Release 2021

Nov 12, 2020

V2 Retail Limited

November 12, 2020

BSELimited	NationalStock ExchangeOfIndiaLimited
Corporate Relationship Department	ListingDepartment
lst Floor,New Trading, RotundaBuilding,	Exchange Plaza,BandraKurla Complex,
PJTowers,DalaiStreet, Fort,	Bandra (East),
Mumbai--400 001	Mumbai--400051
ScripCode-532867	ScripCode-V2RETAIL

Sub: Press Release on unaudited standalone & consolidated Financial Results for the second quarter and half year ended SeptQ b r 30. 2020

Dear Sir/Madam,

Please find enclosed herewith Press Release on unaudited standalone & consolidated Financial Results for the second quarter and half year ended September 30, 2020.

Kindly take the same on your record

Thanking you

End.: As above

Khasra No. 919,921 ,926,928, Extended Lal Dora AbadiVillage Kapashera Teshil Vasant Vihar, South West Delhi-110037 Land Mark:- Fun N Food Village Amusement Park ' Tel.: 011-41771850 E-mail : customercare@vrl.net.in, cs@vrl.net.in ' Website: www.v2retail.com ' CIN : L74999DL2001 PLC147724

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Press Release dated November 11, 2020

V2 Retail Limited, one of India’s fastest growing Retail Company, declared its Unaudited Financial Results for the Quarter & Half Year ended September 30, 2020 (Standalone and Consolidated)

Standalone Financials Performance at a Glance:

Particulars(₹ in mn)	Q2FY21	Q2FY20	Y-o-Y	H1 FY21	H1 FY20	Y-o-Y	FY2020
Revenue	850	1,507	-44%	1,220	3,530	-65%	7,012
Gross Profit	270	418	-35%	380	1,009	-62%	1,960
Gross Margin(%)	31.8%	27.7%		31.1%	28.6%		27.9%
EBIDTA	95	118	-19%	167	396	-58%	783
EBIDTA Margin(%)	11.2%	7.8%		13.7%	11.2%		11.2%
Profit/ (Loss)Before Tax	-97	-97		-214	-20		105
Profit/ (Loss) After Tax	-73	-104		-162	10		101
Total Comprehensive Income/ (Loss)	-73	105		-162	8		96

• For the quarter, revenue from operations stood at ₹ 850 mn, registering a decline of 44% basis Y-O-Y basis. However, the revenue started picking up compared to Q1 FY21 (₹370 mn) owing to easing of lock down related restrictions. Gross Margin stood at 31.8% for Q2 FY21 as compared to 27.7% for Q2FY20. EBIDTA for the quarter stood at ₹ 95mn as compared to ₹ 118 mn in Q2 FY20. EBIDTA margin stood at 11.2% for Q2 FY21 as compared to 7.8% for Q2FY20.

• Various cost mitigation measures and prioritized cost reductions especially involving discretionary spends have helped us in bettering our margins. We believe many of these initiatives would continue to deliver efficiencies over the medium term. We have also been actively engaging with our key stakeholders including our vendors and property partners to collaboratively grapple with the unprecedented developments.

• As a prudent measure, Company has made additional provision for inventories estimated at over ₹ 47.03 mn during H1FY21.

Key evelopments:

• The Company opened 6 new stores and closed 4 stores during Q2 FY21.

• As on September 30, 2020, the Company operates 76 stores spread across 16 states and 69 cities with a total retail area of ~8.1 lac Sq. Ft.

• Company opened 5 new stores during Q3 FY21

• With easing of lockdown restriction and onset of festival season starting October 2020, we are witnessing uptick in demand, which we believe should further improve especially during winter.

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Commenting on the results and performance, Mr. Ram Chandra Agarwal, Chairman & Managing Director said:

“The world is dealing with a medical crisis of enormous proportion which has already resulted in severe economic disruption and demand contraction since the last quarter of FY20. The consumer sentiment has changed from positive to cautious and will take some time to return to normalcy. The entire economy is facing a slowdown, retail sector being one of the most impacted sectors as people shift their consumption to only essential.

A sustained recovery in macroeconomic indicators like GST collection, automobile sales (especially tractors), normal monsoons, and higher Kharif crop procurement coming on the back of a rich Rabi harvest, bode well for retail and discretionary spending in the coming months.

The Company is witnessing gradual pickup at store level operations. We anticipate the situation to stabilise and start turning positive with the onset of festival season from quarter 3 of this fiscal year. We believe that there would be serious uptick in consumer demand with the onset of festive season starting from Durga Puja and Diwali. Also, we have started witnessing demand for winter-wear apparel, contributing to a higher ASP and sales.

We are confident that following this pause, our growth and profitability will continue to accelerate on the back of sustained focus on customer experience, merchandise selection, strong brand recall and our omnichannel presence. Our online retailing platform (www.v2kart.com) has been receiving good response.”

Health and safety of all our customers and employees are of paramount importance and all required precautions are being adhered to.

About V2 Retail Limited:

V2 Retail is one of the fastest growing retail company in India and enjoys strong brand equity from customers across segments. The company offers a portfolio of products, including apparel and life style products. V2 stands for ‘Value and Variety’ it sells good quality fashion garments at affordable prices, which suits every individual and household. The Company has a Strong presence in Northern & Eastern India. The Company caters to the neo middle class group of population living in Tier 2 and Tier 3 cities.

For further information, please contact Dr. Rahul Porwal Mr. Sudhir Kumar Marathon Capital Advisory Private Limited (Company Secretary & Compliance Officer) Tel : +91-22-40030610 V2 Retail Limited Email : rahul@marathoncapital.in Tel : +91-11-41771850 Email : cs@v2retail.net.in

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