Vardhman Textiles (502986) Q4 23/23 earnings summary

Executive summary

• FY23 consolidated revenue rose to ₹10,137.49 crore from ₹9,622.34 crore; PAT fell to ₹804.75 crore from ₹1,551.04 crore amid lower operating profits and investment income.

• Weaker export demand, firm cotton costs and subdued yarn and fabric prices pressured industry margins; strategy centers on innovation, efficiency, value-added products and renewable energy.

Financial highlights

• Consolidated revenue from operations ₹10,137.49 crore vs ₹9,622.34 crore; EBITDA ₹1,556.49 crore, with ~15.07% margin cited in the Chairman’s message.

• Consolidated PBT ₹1,059.91 crore vs ₹2,070.69 crore; PAT ₹804.75 crore vs ₹1,551.04 crore; diluted EPS ₹27.95 vs ₹54.42.

• Standalone revenue from operations ₹9,840.79 crore, up 4.84% YoY; EBITDA ₹1,477.85 crore, down 44.18%; PAT ₹749.07 crore, down 55.34%.

• Consolidated operating cash flow ₹1,852.84 crore vs ₹1,444.58 crore; investing cash outflow ₹1,444.70 crore and financing cash outflow ₹399.17 crore.

Outlook and guidance

• FY24 prospects viewed positively, supported by India’s resilience, domestic consumption and capacity utilization; sagging exports and global slowdown remain headwinds.

• China’s reopening may support yarn demand, while management plans to strengthen R&D, expand renewable generation and pursue value-added and environmentally friendly exports.