Vaibhav Global (VAIBHAVGBL) Q4 13/14 earnings summary

Executive summary

• FY2013-14 consolidated revenue rose 45% to ₹1,298 crore; adjusted EBITDA margin, excluding exchange gain/loss, expanded to 12% from 9%, and PAT before exceptional items rose 95% to ₹153 crore.

• Strong cash generation supported ₹160 crore of free cash flow, a ₹63 crore reduction in net debt and full redemption of preference shares, including dividend, for ₹46.9 crore.

Financial highlights

• Consolidated net sales were ₹1,298.27 crore versus ₹892.89 crore; EBITDA excluding exchange gain/loss was ₹157.49 crore versus ₹80.54 crore.

• Consolidated PAT before exceptional items was ₹152.53 crore versus ₹78.12 crore; reported PAT was ₹152.53 crore versus a loss of ₹85.61 crore in FY2012-13.

• Standalone net sales increased 40% to ₹348.27 crore; PAT before exceptional items was ₹49.77 crore versus ₹17.40 crore.

Outlook and guidance

• Target is to reach zero net debt in FY2014-15 using internal accruals; continued investment planned in products, operations, facilities, people, marketing and technology.

• Growth priorities include increasing share in existing markets across the US, Canada and UK, deepening customer reach and considering other developed and emerging markets after building market share.