Vardhman Textiles Q4 Review - Strong Operating Margin; Outlook Remains Positive: Systematix
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Systematix Research Report
Vardhman Textiles Ltd. reported revenue/Ebitda/profit after tax growth of 22%/75%/67% YoY to Rs 19.5 billion/Rs 3.9 billion/Rs 2.4 billion in Q4 FY21 supported by improving fabric utilisation, strong export demand and a better pricing environment.
The spinning/grey/processed fabric utilisation rate was 100%/99%/79% versus our expectation of 100%/98%/90%.
Sales volumes of yarn/grey/processed fabric improved 7%/17%/6% YoY to 56,698 tonne/57.1 million meter/34.4 million meter.
Gross margin improved 460 basis points YoY to 53.1% due to a higher cotton-yarn spread of Rs 113 versus Rs 75 YoY.
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