Weak consumer sentiment and extended monsoon pulled down V2 Retail net sales by 9.14 per cent at Rs 219 crore during the quarter ended December 2019 compared to Rs 241 crore in the year-ago period.
The quarterly net profit was Rs 20.8 crore, down 12 per cent from Rs 23.6 crore in the same period. However, earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at Rs 33.7 crore Q3 FY20, up 10 per cent from Rs 30.6 crore in Q3 FY19. V2 Retail's earning per share declined to Rs 6.09 from Rs. 6.93 in the same period.
"The company has taken additional provision amounting to Rs 6.9 crore for expected loss on the sale of old inventory," it said in a statement on Tuesday.
Chairman and Managing Director Ram Chandra Agarwal said the retail sector continues to face a general slowdown in consumption and low consumer confidence.
"We consider this year as a year of consolidation and course correction before taking a leap," he said.
V2 Retail has a presence in northern and eastern India. It caters to the neo-middle-class group of population living in tier 2 and tier 3 cities.