A labour court in Banda, Uttar Pradesh, has ordered V-Mart to pay Rs 11,20,852 for non-payment of minimum wages and overtime wages. In an exchange filing, the company said that it received the order on June 12 from the Deputy Labour Commissioner of Chitrakoot Area, Banda.
Furthermore, the company stated that the order was passed in the aftermath of a complaint filed by the labour inspector in the area.
Next course of action for V-Mart
V-Mart said that it would not pay the ordered amount; instead, it has decided to challenge the order. The company said that it will challenge the adverse order on merit and procedural lapse of the proceeding. However, the company hasn’t yet revealed what the merit or procedural lapses were in the investigation.
V-Mart FY25 results
V-Mart has created a niche for itself in the fashion retail segment in tier-2 cities.. Starting from a single store in Ahmedabad in 2003, the company has expanded to 27 states and union territories. Today, it has reached a store count of 503 in 311 cities.
In the fourth quarter of fiscal year 2024-25, V-Mart clocked a revenue of Rs 780 crore. On a year-on-year basis, the quarterly revenue of the company increased by 17 percent. Furthermore, the company posted 19 crores in Q4.
For the complete FY25, V-Mart posted revenue of Rs 3254 crore. The company registered a 17 percent growth in its yearly revenue as well, and in the previous fiscal year, it generated Rs 2786 crore in revenue from operations. On a yearly basis, the V-Mart posted a PAT of Rs 46 crore. However, the company posted losses of Rs 97 crore in the previous fiscal year.