Vaibhav Global (VAIBHAVGBL) Q4 21/22 earnings summary

Executive summary

• FY22 revenue increased 8.4% YoY to ₹2,752 crore, despite inflation, post-pandemic shifts to in-person shopping and other macro headwinds.

• Strategic spending on digital capabilities, broadcasting, Germany and automation weighed on reported profitability; long-term growth and margin recovery remain priorities.

• Digital revenue grew 8.5% YoY and 55.8% versus FY20; digital sales represented 37% of retail sales.

Financial highlights

• Consolidated revenue was ₹2,752 crore versus ₹2,540 crore in FY21; gross margin was 62.3%, broadly in line with FY21.

• EBITDA was ₹303 crore, with an 11.0% margin versus 15.3% in FY21; adjusted for Germany losses, the margin was 12.7%.

• PAT was ₹237 crore versus ₹272 crore; adjusted for Germany losses and exceptional items, PAT was ₹258 crore.

• EPS was ₹14.56 versus ₹16.77 in FY21; operating cash flow was ₹86 crore and free cash flow was negative ₹214 crore.

• B2C revenue grew 6.8% YoY; B2B revenue rose to ₹67 crore from ₹25 crore, up 162.7%.

Outlook and guidance

• Germany is expected to break even by H2 FY24; reported margins there exceeded 60% within months of launch.

• Targeted annualised savings from cost-efficiency initiatives are US$6–7 million; management expects medium-term EBITDA margins to return to mid-teens.

• FY23 plans include adding 10 million cable and OTA households, expanding OTT and VOD reach, and improving digital marketing and customer experience.

• Inflation and recession concerns may affect near-term consumer sentiment, while management expects sustainable growth over the medium and long term.