Vaibhav Global (VAIBHAVGBL) Q4 19/20 earnings summary

Executive summary

• FY20 was a record year: consolidated revenue reached ₹1,986 crore and PAT ₹190 crore, with growth in US and UK retail despite COVID-19 disruption in Q4.

• Retail operations continued through the pandemic; a rapid shift into essential products and resilient digital and TV channels supported business continuity.

Financial highlights

• FY20 revenue rose 9.5% YoY to ₹1,986 crore; gross profit increased 8% to ₹1,224 crore, EBITDA grew 27% to ₹276 crore and PAT rose 23% to ₹190 crore.

• Basic EPS increased to ₹58.65 from ₹47.27; FY20 PAT margin was 9.6% versus 8.5% in FY19.

• Q4 retail revenue, EBITDA and PAT grew 14%, 29% and 22% YoY, respectively; Q4 gross margin was 60%.

Outlook and guidance

• Expected continued retail revenue growth, supported by wider product ranges, deeper omni-channel engagement in the US and UK, and established fulfilment and customer-service capabilities.

• Priorities include digital-first expansion, stronger TV and web marketing, cost renegotiation and improved working-capital efficiency; no quantified FY21 guidance was stated.

• Management expected pandemic-era changes to accelerate home shopping and digital commerce, while noting that growth prospects remained difficult to predict.