Q2FY23 Quarterly Result Announced for Vaibhav Global Ltd.
Apparels & accessories manufacturing company Vaibhav Global announced Q2FY23 results: Q2FY23: Q2FY23: Rs. 646 crores vs Rs. 635 crores YoY Robust growth of 33% over the pre-Covid period of Q2FY20 3 years compounded annual growth of 10% Digital Revenue Mix: 36% of B2C revenue Industry leading Gross Margins at 60%+ owing to vertically integrated supply chain and wider product mix EBITDA margin at 8.1% vs 11.5% in Q1FY23. Attributed to: YoY lower gross margins due to product mix and prices not passed on fully Conscious investment on digital & broadcasting network PAT for the quarter is Rs. 23 crores as against Rs. 42 crores last year ROCE at 18% and ROE at 13% (on a TTM basis) Return ratios reflect the impact of lower profitability which have started seeing a sequential improvement. Hence, we expect to improve return ratios going forward Declared a second interim dividend of Rs 1.50 per equity share (face value Rs 2 each). The total interim dividend for FY23 till H1 is Rs. 3.00 per equity share Commenting on the performance for Q2 FY23 Mr. Sunil Agrawal, Managing Director, Vaibhav Global Limited said, During the quarter gone by, we registered low single-digit revenue growth, which is promising on the backdrop of the current high inflationary environment in western economies. While the quarter looks soft, our 3 years compounded annual growth stands at 10% or 33% over Q2 FY20. Our margins, which bottomed out in Q1, have started seeing a sequential improvement and we expect to continue to improve in H2. We continue to monitor macro environment & business trends and believe that we have the team and the experience to effectively manage our business in any environment. We believe that the long-term demand remains strong and our business model robust. Amidst current broader economic challenges, we have seen a visible sequential improvement during the last few months with revenue trends improving month-over-month and believe that this transient phase will be behind us soon. Considering the current macro environment, we expect to deliver 2-4% topline growth with an 8-9% EBITDA margin this financial year. Our mid-term outlook remains intact and we expect to deliver mid-teens revenue growth in subsequent years with operating leverage. Result PDF28-10-2022