Vishal Fabrics announces Q1 FY22 Results

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Vishal Fabrics Limited announced its un-audited Standalone results for the first quarter ended 30th June 2021. Vishal Fabrics Limited (VFL) is a denim manufacturing and fabric processing unit incorporated in 1985. A part of the renowned Chiripal Group, the Company leverages over 3 decades of experience to provide unmatched products to a diverse clientele.

The Company constantly strives to improve its manufacturing facilities and aims to develop India’s leading dyeing, printing, and processing units. Its state-of-the-art manufacturing facilities are equipped with the latest technology and deliver innovative products that adhere to international quality standards. Over the years, the company has managed to emerge as a pioneer in the textile industry, setting new standards of excellence.

Commenting on the performance, Mr. Brijmohan Chiripal, Managing Director & CEO, said,

“The results of the first quarter of FY22 demonstrates the resilience of our Company’s strong operating performance. During the quarter, the Company recorded robust revenue growth with Revenue of Rs.294.9 Crs. Domestic demand and improvement in exports contributed to our growing sales. Increase in raw material prices impacted gross margin during the quarter. However, various cost reduction measures helped us to sustain EBITDA margins. Capacity utilization level during the quarter remains stable.

Going forward, our endeavor is to reduce our debt and achieve a reasonable Debt:Equity mix which will help us strengthen our balance sheet.”

The Board of Directors in their meeting held today declared Interim Dividend Rs. 0.50 per share equity

Rs. 5/- each for the Financial Year 2021-22. During the meeting, the Promoters and the Promoter Group of the Company have decided to waive off the right to receive Interim Dividend for the Financial year 2021-22

Standalone Financial Performance:

Revenue

Revenue for Q1FY22 stood at Rs.294.9 Crs as against Rs.67.3 Crs in Q1FY21, a growth of 338% on YoY basis.

Higher utilization levels led to increase in overall sales.

Gross Profit

Gross Profit for Q1FY22 stood at Rs. 53.1 Crs as against Rs. 14.6 Crs in Q1FY21, a growth of 263% on YoY basis.

Gross Profit Margin for Q1FY22 stood at 18.0% as against 21.7% in Q1FY21.

The Gross Profit margins were impacted due to higher raw material costs as compared to the previous periods.

EBITDA

EBIDTA for Q1FY22 stood at Rs.30.9 Crs as compared to Rs.5.4 Crs for Q1FY21, a growth of 475% on YoY basis.

EBIDTA margins for Q1FY22 stood at 10.5% as compared to 8.0% in Q1FY21.

Adoption of various cost reduction measures helped improve the EBITDA Margins.

PAT

PAT for Q1FY22 stood at Rs.10.2 Crs as compared to Rs. (8.2) Crs for Q1FY21.

PAT margins for Q1FY22 stood at 3.5%.

Reduction in finance costs helped to improve profitability.

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