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V2 Retail on Wednesday reported a standalone net loss of Rs 8.92 crore for the first quarter ended June 30, 2020. The retailer had reported a net profit of Rs 11.44 crore in the corresponding period a year ago.
According to a PTI report: For the quarter under consideration, revenue from operations stood at Rs 36.97 crore, a decline of 82 percent, as against Rs 202.34 crore in the first quarter of the previous fiscal, V2 Retail said in a regulatory filing.
The company said this decline was “on the back of the COVID-19-related store closures for a major part of the quarter”.
“The company is witnessing gradual pickup at store level where operations have resumed fully. However, due to the various amended guidelines issued by local authorities including phasing/re-imposition of lockdowns to combat the spread of COVID-19, the store level activities have been impacted.The trajectory of recovery from this pause would depend on the playout of the COVID pandemic and its effect on consumer sentiment and confidence,” Ram Chandra Agarwal, Chairman and Managing Director, V2 Retail was quoted by PTI as saying.
Agarwal said the company anticipates the situation to stabilise and start turning positive from the third quarter of this fiscal year.
“We believe that there would be a serious uptick in consumer demand with the onset of the festive season starting from Durga Puja and Diwali.
“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,” he was further quoted by PTI as saying.
Raisin, one of India’s fastest-growing contemporary fashion labels, is set to launch its first-ever Exclusive Brand Outlet (EBO) in Dehradun. This outlet will include all of Raisin’s varied collections, giving its customers a plethora of comfortable options to choose from, ranging from breezy Kurtas to fusion dresses, chic jumpsuits to comfy Kurta, and a lot more.
“Over the past five fiscals, revenue growth of RMG makers was supported by domestic demand even as exports were muted. This fiscal, with domestic demand also falling significantly, revenues are expected to be materially impacted,” Gautam Shahi, Director, Crisil Ratings said in a release.
According to Manish Kapoor, Chief Executive Officer, Pepe Jeans,stringent safety norms will set the foundation of consumer engagement. He says that channel preferences – like e-commerce, which make customers comfortable with convenient, stayat-home shopping – will be more prominent now than ever before.
This collaboration of these two powerhouses ushers a new way ahead for the clothing industry where technology- led garments will be available to the Indian consumer paving the way for a revolution in the market – of safe choices and quality technology-driven products. The fabric for the Securo range of shirts has been finished by Donear and certified by HeiQ providing 99.99 percent protection against bacteria and viruses, including the virus that causes COVID-19 (SARS COVID-2).
These were the findings of India Ratings and Research’s (Ind-Ra) assessment for the impact of COVID-19 on India’s textile sector highlights expected outcomes while presenting Ind-Ra’s revenue base case assumptions as well as sub-sector outlook from raw materials to home textiles along with impact on credit metrics.