Vardhman Textiles (502986) Q4 23/24 earnings summary

Executive summary

• FY24 revenue and profitability declined YoY amid weak export demand, cotton-price pressure and lower spinning-industry utilization; domestic economic conditions remained resilient.

• Consolidated revenue was ₹9,504.68 crore and PAT ₹636.70 crore; management emphasized technology upgrades, technical textiles and renewable energy as strategic growth areas.

Financial highlights

• Consolidated revenue from operations was ₹9,504.68 crore vs ₹10,137.49 crore in FY23; EBITDA/PBDIT was ₹1,341.80 crore vs ₹1,556.49 crore.

• Consolidated PAT was ₹636.70 crore vs ₹804.75 crore; EPS was ₹22.20 vs ₹27.96.

• Standalone revenue was ₹9,298.68 crore vs ₹9,840.79 crore; PAT was ₹607.63 crore vs ₹749.07 crore.

• Standalone exports (FOB) fell to ₹3,899 crore from ₹4,242.52 crore; reported export share was ~41% of sales.

Outlook and guidance

• Fabric capacity utilization was 85–90%; plans include ~₹300 crore initial investment to enter technical textiles, beyond routine modernization.

• Plans call for ₹1,000 crore+ investment in yarn technology upgrades; technical fabric output is planned at ~15 lakh metres/month, with capacity increases tied to market feedback.

• Green power represented ~2.5% of energy use; the target is 35–40% within the next couple of years through solar and wind investments.

• Management expressed confidence in India’s textile-industry prospects while noting near-term uncertainty in export and domestic markets.