Vishal Fabrics turnaround profit to Rs10.2cr in Q1FY22 on reduction in finance costs; Stock up ~5%

The company’s revenue for Q1FY22 stood at Rs294.9cr in Q1FY21, a growth of 338% on yoy basis on higher utilisation levels.

Jul 27, 2021 09:07 IST India Infoline News Service

Market at higher point1
Vishal Fabrics Limited announced its un-audited Standalone results for the first quarter ended June 30, 2021. Profit After Tax (PAT) for Q1FY22 stood at Rs10.2cr as compared to loss of Rs8.2cr for Q1FY21. PAT margins for Q1FY22 stood at 3.5%. The company said that reduction in finance costs helped to improve profitability.

The company’s revenue for Q1FY22 stood at Rs294.9cr as against Rs67.3cr in Q1FY21, a growth of 338% on yoy basis. Higher utilization levels led to increasing in overall sales, the company said in a filing on Monday.

Gross Profit for Q1FY22 stood at Rs53.1cr as against Rs14.6cr in Q1FY21, a growth of 263% on yoy basis. Gross Profit Margin for Q1FY22 stood at 18.0% as against 21.7% in Q1FY21.

“The Gross Profit margins were impacted due to higher raw material costs as compared to the previous periods,” it said.

EBIDTA for Q1FY22 stood at Rs30.9cr as compared to Rs5.4cr for Q1FY21, a growth of 475% on yoy basis. EBIDTA margins for Q1FY22 stood at 10.5% as compared to 8.0% in Q1FY21. Adoption of various cost reduction measures helped improve the EBITDA Margins.

The company’s Board of Directors in their meeting held on Monday declared Interim Dividend Rs0.50 per share equity Rs5/- each for the Financial Year 2021-22. During the meeting, the Promoters and the Promoter Group of the Company have decided to waive off the right to receive Interim Dividend for the Financial year 2021-22

“The results of the first quarter of FY22 demonstrates the resilience of our Company’s strong operating performance. During the quarter, the Company recorded robust revenue growth with Revenue of Rs294.9cr. Domestic demand and improvement in exports contributed to our growing sales. Increase in raw material prices impacted gross margin during the quarter.

However, various cost reduction measures helped us to sustain EBITDA margins. Capacity utilization level during the quarter remains stable. Going forward, our endeavor is to reduce our debt and achieve a reasonable Debt:Equity mix which will help us strengthen our balance sheet,” Brijmohan Chiripal, Managing Director & CEO, said.

At around 9.36 AM, Vishal Fabrics Ltd. was trading at Rs10.75 per piece up Rs4.95 or 4.68% on the BSE. The stocks has hit day's high of Rs111 per piece so far. 

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