Denim major Vishal Fabrics reports strong Q4FY22 results!

Net profit after tax for FY22 stood at Rs 69 crore as compared to Rs 18 crore for FY21, recording a robust growth of 281 per cent. 

Denim manufacturer Vishal Fabrics Ltd (VFL) has announced its audited standalone financials for the quarter and full-year ended March 31, 2022. The company has achieved the highest-ever revenue, EBITDA & PAT in FY22, despite a challenging environment. 

Financial highlights for Q4FY22 are as follows:  

• The company recorded revenues of Rs 426 crore during Q4FY22 as against Rs 388 crore in Q4FY21, exhibiting a YoY growth of 10 per cent. 
• EBIDTA for Q4FY22 stood at Rs 44 crore as compared to Rs 41 crore for Q4FY21, a decent growth of 8 per cent. EBIDTA margins for Q4FY22 stood at 10.4 per cent as compared to 10.6 per cent in Q4FY21. 
• Net profit after tax for Q4FY22 stood at Rs 20 crore, registering a growth of approximately 40 per cent from Rs 14 crore recorded in Q4FY21. 
• EPS for Q4FY22 stood at Rs 0.99.    

Financial highlights for FY22 are as follows:  

• Revenue for FY22 stands at Rs 1,547 crore as against Rs 968 crore in FY21 (annual growth of 60 per cent). 
• EBIDTA for FY22 stood at Rs 161 crore as compared to Rs 88 crore for FY21 while EBIDTA margins for FY22 stood at 10.4 per cent, up by 131 basis points as compared to 9.1 per cent in FY21. Various cost measures taken by the company during the year have helped improve margins. 
• Net profit after tax for FY22 stood at Rs 69 crore as compared to Rs 18 crore for FY21, recording a robust growth of 281 per cent. 
• EPS for FY22 stood at Rs 3.49. 
• The company targets to reduce debt by Rs 35 crore-Rs 40 crore in FY23, out of which, Rs 9 crore has already been paid in April 2022. 

In a statement filed with the exchange, Vinay Thadani, CEO of Vishal Fabrics remarked, “We believe that we have built a strong foundation for the future with sustainable and profitable growth for the long-term. At Vishal Fabrics, we believe in stable and supreme performance while our focus will be on maximising the revenue growth, going ahead. Large interest is to build the profitability by maintaining cost control measures and focus on improving return ratios and maintaining healthy balance sheet position by following our asset-light model.”  

Incorporated in 1985, Vishal Fabrics Limited (VFL) is a denim manufacturing and fabric processing unit. A part of the renowned Chiripal Group, the company leverages over three decades of experience to provide unmatched products to a diverse clientele. Its state-of-the-art manufacturing facilities are equipped with the latest technology and deliver innovative products that adhere to international quality standards. Over the years, the company has managed to emerge as a pioneer in the textile industry, setting new standards of excellence. 

The shares of Vishal Fabrics soared during the early market hours to touch an intraday high of Rs 34.95 on Friday. At 10 am, the scrip is up by approximately 3 per cent, trading at Rs 33 per share on BSE. 

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