Q4FY22 Quarterly Result Announced for Vaibhav Global Ltd.
Apparels & Accessories company Vaibhav Global declares Q4FY22 result: Q4 and FY22 revenue grew by 2.9% and 8.4% YoY respectively. Compared to same periods of FY20, revenue in Q4 and full year grew strongly by 37.6% and 38.6% respectively. Digital revenue mix continuously increasing, now at 37% of total retail revenue Industry leading gross margins at 60.0% and 62.3% for Q4 and FY22 respectively EBITDA margin in Q4 FY22, excluding Germany at 8.9% vs 12.8% in Q4 FY21. Margin momentarily impacted by accelerated investments in digital marketing, marketplaces, and increased airtime on OTA platforms PAT for Q4 and FY22 was Rs. 27 crores and Rs. 237 crores respectively vis-à-vis Rs. 56 crores and Rs. 272 crores for same period last year. Adjusted for loss in Germany, PAT for the quarter and full year would be Rs. 41 crores and Rs. 286 crores respectively. ROCE at 31% and ROE at 23% (on TTM basis), return ratios reflecting short-term impacts of conscious business investments but are still at very healthy levels and at par with normal precovid years Recommended final dividend of Rs 1.50 per share (face value Rs 2 each) making cumulative dividend of Rs. 6.00 per share for FY22 Commenting on the performance for Q4 FY22 Mr. Sunil Agrawal, Managing Director, Vaibhav Global Limited said We delivered revenue of Rs. 685 crores for fourth quarter, up by 2.9% YoY and closed the fiscal year with 8.4% revenue growth, which is in line with the guidance we set out in Q3. The revenue growth is more encouraging when we compare it with Q4 of FY20 and full year FY20 which is 37.6% and 38.6% respectively. We maintained our gross margins at 60.0% in Q4 and 62.3% for FY22, which is at par with FY21. Our industry leading margins are made possible because of high margin product mix, efficient price management, efficient planning, in-house manufacturing and wide sourcing base. FY22 was a year of investments for us wherein we made long-term investments in building our digital competencies, automation, channel upgrade and Geographical expansion. We continued with our planned investments in new OTA homes, elevated digital marketing spends on OTT’s, social media search and third-party marketplaces. We believe these investments to be necessary for future growth. We also invested in our tech infrastructure and upgraded our website in US and mobile & OTT apps in US & UK. In UK, our freeview channel upgradation to #22 from erstwhile channel 50 is yielding improved viewership and increased new customer acquisition. Implementation of robotic automation at our UK and US warehouses have started to yield positive results, with complete benefits accruing in coming quarters. Germany has also been faring well and its performance has been as per our plans. We continue with our guidance to achieve breakeven in Germany by H2 of FY24. During the quarter, Shop LC has finalised architect for its upcoming headquarters in Austin, Texas with expected completion by H2 of FY24. This investment is expected to provide cost optimization, functional integration, and resultant growth opportunities. VGL group has also completed acquisition of Encase Packaging Private Limited, this acquisition will further strengthen our supply chain network providing requisite flexibility and cost advantage. Result PDF24-05-2022