VARDHMAN TEXTILES Announces Quarterly Results (3QFY20); Net Profit Up 3.6%
Fri, 14 Feb

VARDHMAN TEXTILES has announced its results for the quarter ended December 2019. Here is a detailed performance review of the same:

VARDHMAN TEXTILES Quarterly Financials

No. of Mths
Qtr. Ending
3
Dec-18*
3
Sep-19*
3
Dec-19*
QoQ ChangeYoY Change
Net SalesRs m17,29416,63718,2529.7%5.5%
Other incomeRs m604300704135.0%16.5%
TurnoverRs m17,89916,93618,95611.9%5.9%
ExpensesRs m14,22314,13916,13414.1%13.4%
Gross profitRs m3,0712,4982,118-15.2%-31.0%
DepreciationRs m6308268654.8%37.4%
InterestRs m267338294-12.9%10.4%
Profit before taxRs m2,7791,6341,6631.7%-40.2%
TaxRs m868457-317-169.4%-136.5%
Profit after taxRs m1,9111,1771,98068.2%3.6%
Gross profit margin%17.815.011.6
Effective tax rate%31.228.0-19.1
Net profit margin%10.77.010.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


Year-on-Year Performance:
  • The company's operating income during the quarter grew 5.5% on a year-on-year (YoY) basis. The expenses were up by 13.4% YoY during the same period.
  • The company's operating profit declined by 31.0% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 11.6% in 3QFY20 as against 17.8% in 3QFY19.
  • Depreciation charges increased by 37.4% and finance costs increased by 10.4% YoY, respectively.
  • Other income increased by 16.5% YoY during the quarter.
  • Net profit for the quarter increased by 3.6% YoY. Net profit margins during the quarter declined from 10.7% in 3QFY19 to 10.4% in 3QFY20.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter grew 9.7% on a quarter-on-quarter (QoQ) basis. The expenses were up by 14.1% QoQ during the same period.
  • The company's operating profit declined by 15.2% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 11.6% in 3QFY20 as against 15.0% in 2QFY19.
  • Net profit for the quarter increased by 68.2% QoQ, while net profit margins increased from 6.9% in 2QFY19 to 10.4% in 3QFY20.

To see how VARDHMAN TEXTILES has performed over the last eight quarters,please visit here.

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VARDHMAN TEXTILES Share Price Performance

Over the last one year,VARDHMAN TEXTILES share price has moved down from Rs 1,004.5 to Rs 997.8, registering a Loss of Rs 6.7 or around 0.7%.

Overall, the S&P BSE SENSEX is up 14.5% over the year.

Current Valuations

At the current price of Rs 997.8, the price to earnings (P/E) ratio of VARDHMAN TEXTILES stands at 10.3 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.3 times.