Vardhman Textiles Q3 Review - Demand Grows Unabated: Systematix

"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..Systematix Research Report.Vardhman Textiles Ltd.'s reported revenue/Ebitda/profit after tax growth of 49%/124%/151% YoY to Rs 26.0 billion/6.2 billion/4.3 billion in Q3 FY22.Growth was led by a 42% YoY increase in fabric volumes as the end-user market recovered, although yarn volumes declined 5% YoY on a high base.Gross margin improved 400 basis points YoY to 52.4% due to higher cotton-yarn spread but contracted 350 bps QoQ due to the high base effect as Vardhman Textiles enjoyed low-cost inventory benefits in Q2 FY22. Operating profit margin expanded 800 bps YoY to 23.8% due to higher gross margins and better cost absorption on improved utilisations. Profit after tax increased 151% YoY to Rs 1.7 billion driven by higher Ebitda, other income and lower interest cost. The long-term demand outlook remains positive as global retailers seek additional sourcing partners to diversify their supply chains. .Click on the attachment to read the full report:.DISCLAIMERThis 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 author entity 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."

Vardhman Textiles Q3 Review - Demand Grows Unabated: Systematix