ICICI Direct: Vardhman Textiles - Margin Recovery Critical For Improved Performance
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:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.