Vaibhav Global (VAIBHAVGBL) Q4 17/18 earnings summary

Executive summary

• FY18 revenue rose 8.7% YoY to ₹1,564 crore; net profit increased 74.2% to ₹113 crore, supported by retail growth, cost control and operating leverage.

• US and UK retail platforms delivered double-digit constant-currency growth, while digital sales and Budget Pay supported customer demand and higher sales.

Financial highlights

• Consolidated revenue from operations was ₹1,575.4 crore, up from ₹1,438.9 crore; consolidated profit for the year was ₹112.5 crore, versus ₹64.6 crore.

• Gross profit reached ₹929 crore, up 7.4%; operating profit rose 55.9% to ₹159 crore.

• Q3 revenue was a record ₹460 crore, up 14% YoY; EPS increased 74.1% to ₹34.6.

• Web retail sales grew 34.9% to ₹371 crore; television retail sales were ₹993 crore, up 1.95%, and B2B sales were ₹200 crore, up 5.26%.

Outlook and guidance

• Management expects continued multi-year growth, supported by a deep-value proposition, sourcing and manufacturing capabilities, customer engagement and operating leverage.

• Double-digit growth guidance for the year was met, with constant-currency retail revenue growth of 11% in the US and nearly 20% in the UK.

• Most major capital investments are complete; selective investment in marketing, operations, people, facilities and technology will continue.

• Ind AS 115 adoption was planned from 1 April 2018 using the cumulative catch-up method; the impact was under evaluation.