Vaibhav Global (VAIBHAVGBL) Q2 24/25 earnings summary

Executive summary

• Achieved 13% year-over-year revenue growth in Q2 FY25, reaching INR 796 crore (₹79,642.91 lacs), with strong gross margins of 63.5% and EBITDA margin at 8.7%.

• Unique customer base grew 51% YoY to 682,000, with customer retention at 41% and average 23 pieces per customer annually.

• Interim dividends totaling ₹3.00 per share declared for the period, with a record date of 20 November 2024.

• Sale of entire 60% stake in Encase Packaging Private Limited and NGT Global Private Limited completed in Q2 FY25, aligning with strategic focus.

• TV network now reaches 130 million households; digital revenue contributed 39% of total B2C sales.

Financial highlights

• Q2 FY25 revenue: INR 796 crore (₹79,642.91 lacs), up from INR 705 crore YoY; constant currency growth of 10.2%.

• Gross margin: 63.5%; EBITDA margin: 8.7%; PAT: INR 28 crore (₹2,777.58 lacs).

• TV revenue: INR 456 crore (+12.3% YoY); digital revenue: INR 294 crore (+11.8% YoY).

• Cash and cash equivalents as of 30 September 2024: ₹6,913.14 lacs; net cash from operating activities for H1 FY25: ₹2,789.89 lacs.

• ROCE: 17%; ROE: 10%; net profit margin for Q2 FY25: 3.5%.

Outlook and guidance

• Reaffirmed FY25 revenue growth target of 14%-17% with operating leverage.

• Projecting mid-teens revenue growth in coming years, with digital expected to outpace TV.

• Content and broadcasting expenses expected to be 18% of revenue for FY25 and remain flat in future years.

• Management does not expect any liability from ongoing or past tax proceedings based on legal advice.