Vardhman Textiles Ltd's Q1FY19 consolidated net profit rises 6.91% yoy to Rs159.13cr: Misses Estimates

The company’s consolidated revenue in the period stood at Rs1,699.97cr, up 8.44% yoy and 12.61% qoq.

Aug 13, 2018 11:08 IST India Infoline Research Team

Vardhman Textiles Ltd Q1FY19

Consolidated Results Q1FY19: (in Rs cr)

Q1FY19 YoY (%)
Revenue 1,699.97 8.4
EBITDA 292.20 32.5
EBITDA Margin (%) 17.19 312
Net Profit (adjusted) 159.13 6.9
***EBITDA margin change is bps

Vardhman Textiles Ltd’s revenue in Q1FY19 grew 8.4% yoy and 12.6% qoq to Rs1,700cr. EBITDA came in at Rs292cr, up 32.5% yoy and 12.7% qoq. EBITDA margin expanded 312bps yoy and 2bps qoq to 17.19%. Adjusted PAT grew 6.9% yoy and declined 2.8% qoq to Rs159cr. Adjusted PAT, meanwhile, came below the estimates of Rs173cr.

• Revenue from Acrylic fiber and Textiles segments grew 47.2% yoy and 6.9% yoy to Rs99cr and Rs1,625cr, respectively.
• Cost of goods sold stood at 53.3% of sales vs 54.2% yoy, aiding in EBITDA margin expansion.
• Other expenses stood at 12.1% of sales vs 14.1% yoy, also aiding in EBITDA growth.
• Finance cost grew 24% yoy to Rs34cr, while other income declined 42.2% yoy to Rs27cr. Both have resulted in a slower growth of net profit despite 32.5% yoy EBITDA growth.





Technical View:

Vardhman Textiles Ltd is currently trading at Rs1,169.95, down 20.05 points, or 1.68%, from its previous close of Rs1,190 on the BSE.
The scrip opened at Rs1,187 and has touched a high and low of Rs1,217.30 and Rs1,160.20, respectively. So far, 27,885 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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