ICICI Direct: Vardhman Textiles - Margin Recovery Critical For Improved Performance
Spools of thread at plant in Gujarat. (Photographer: Rajendra Giri/BloombergQuint)

ICICI Direct: Vardhman Textiles - Margin Recovery Critical For Improved Performance

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

Vardhman Textiles Ltd. reported a recovery on the revenue front with revenues in Q2 FY21 declining YoY marginally by 2.3% to Rs 1625 crore.

However, gross margins fell 940 basis points YoY to 38.5%, which led Ebitda margin to decline 612 basis points YoY to 8.9% inspite of 267 basis points reduction in power and fuel cost.

Ebitda fell 42% YoY to Rs 144.7 crore. Ebitda was impacted by hedging loss on cotton derivative contracts to the tune of Rs 26 crore.

Click on the attachment to read the full report:

ICICI Direct VardhmanTextiles Company Update.pdf

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