Vardhman Textiles (502986) Q4 20/21 earnings summary

Executive summary

• FY21 performance reflected COVID-19 disruption: yarn recovered quickly, while subdued demand for woven fabric kept capacity utilization below optimal levels.

• Standalone revenue fell 8.49% YoY to ₹5,787.64 crore and PAT declined 35.78% to ₹350.41 crore; consolidated PAT was ₹422.47 crore.

Financial highlights

• Standalone revenue from operations was ₹5,787.64 crore vs ₹6,325.15 crore; EBITDA was ₹928.72 crore vs ₹1,054.76 crore.

• Standalone PBT declined to ₹467.16 crore from ₹603.01 crore; PAT was ₹350.41 crore vs ₹545.49 crore.

• Consolidated revenue was ₹6,139.87 crore vs ₹6,735.00 crore; PBDIT was ₹1,036.03 crore vs ₹1,123.96 crore.

• Consolidated PBT was ₹558.90 crore vs ₹655.47 crore; PAT was ₹422.47 crore vs ₹590.97 crore, including ₹20.63 crore share of associate profit.

• Standalone export FOB value rose 6.40% YoY to ₹2,670.30 crore despite the pandemic-driven revenue decline.

Outlook and guidance

• FY22 Indian economic growth was expected to exceed 10%, with recovery supported by vaccination and normalization of activity; COVID-19 uncertainty, including a possible third wave, remained.

• Yarn demand from China was expected to continue amid US-China trade restrictions on Xinjiang cotton products, but new-season cotton could pressure yarn margins.

• Woven-fabric demand was expected to strengthen as economies reopened, supporting a return to full capacity utilization.