Vardhman Textiles Ltd's Q2FY19 consolidated net profit rises 47.5% yoy to Rs196cr: Beats Estimates

The company’s consolidated revenue in the quarter stood at Rs1,685cr, up 10.6% yoy but down 0.9% qoq.

Nov 12, 2018 11:11 IST India Infoline Research Team

Vardhman Textiles Ltd Q2FY19

Consolidated Results Q2FY19: (in Rs cr)

Q2FY19 YoY (%)
Revenue 1,685.10 10.6
EBITDA 330.97 67.5
EBITDA Margin (%) 19.6 666
Net Profit (adjusted) 196.41 47.5
***EBITDA margin change is bps

Vardhman Textile Ltd’s revenue in Q2FY19 grew 10.6% yoy (declined 0.9% qoq) to Rs1,685cr. EBITDA in the quarter came in at Rs331cr, up 67.5% yoy and 13.3% qoq. EBITDA margin, meanwhile, expanded by 666bps yoy and 245bps qoq to 19.6%. Adjusted PAT grew 47.5% yoy and 23.4% qoq to Rs196cr. Adjusted PAT was above the estimates of Rs175cr.

• Revenue from the acrylic fiber and textiles segments grew 27.7% yoy and 10.3% yoy to Rs118cr and Rs1,592cr, respectively.
• Cost of goods sold stood at 49.2% of sales vs. 55.8% yoy, aiding EBITDA margin expansion.
• Other expenses stood at 12.5% of sales vs. 11.9% yoy.
• EBIT margin of acrylic fiber and textiles segments stood at 11.72% and 17.76% for Q2FY19 vs. 5.48% and 12.07% yoy, respectively.
• Finance cost grew 5.9% yoy to Rs29cr.
• Other income declined 17.8% yoy to Rs42cr, while the tax rate for the quarter stood at 30.6% vs. 19.7% yoy. These factors led to the slower growth in net profit despite 67.5% yoy EBITDA growth.

Technical View:

Vardhman Textiles Ltd ended at Rs1,049.30, down 9.9 points, or 0.93%, from its previous close of Rs1,059.20 on the BSE. The scrip opened at Rs1,062 and touched a high and low of Rs1,064.20 and Rs1,040.50, respectively. A total of 5,636 (NSE+BSE) shares were traded on the counter. The stock traded below its 200-DMA.

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