Vedant Fashions (MANYAVAR) Q4 21/22 earnings summary

Executive summary

• FY22 consolidated revenue rose 84.3% YoY to INR 10,408.41 Mn; PAT increased 136.9% to INR 3,149.11 Mn, with EBITDA margin at 50.1%.

• Performance rebounded from pandemic-affected FY21, supported by brand traction, an asset-light franchise model and retail recovery as mobility restrictions eased.

Financial highlights

• Consolidated PBT was INR 4,230.11 Mn, up 132.5% YoY; PAT margin was 30.3%, versus 23.5% in FY21.

• EBITDA reached INR 5,213 Mn, up 85.0% YoY; gross margin was ~67% and pre-tax ROCE was 75.3%.

• Operating cash flow was INR 3,510.18 Mn; cash and cash equivalents closed at INR 36.09 Mn.

Outlook and guidance

• Robust store-network performance following easing of COVID mobility restrictions was expected to continue and strengthen in FY23.

• Plans target retail space of 2.2 Mn sq. ft. over the next few years, with focused expansion in India and overseas and a stronger omnichannel strategy.

• Growth priorities include scaling emerging brands through up-selling and cross-selling, targeted marketing and a disciplined approach to acquisitions.