India 11th November, 2022:- Vishal Fabrics Limited (BSE: 538598) (NSE: VISHAL) announced its un-audited standalone financials for the second quarter and half year ended 30th September 2022.
Commenting on the performance, Mr. Brijmohan Chiripal, Managing Director, said, “During the quarter, the overall demand scenario remained muted owing to ongoing economic challenges, volatile cotton prices and global inflationary pressures. As a result, our capacity utilization levels were on the lower side, impacting our margins negatively. We are ready to sail through these challenging times with a comfortable level of debt-equity ratio at 0.98x. Although the short-term headwinds may continue, we remain confident about the long-term growth prospects for the Indian textile sector as well as our capacity to raise utilization levels and get back the revenues at normalcy.”
Financial & Business Highlights:
The Company recorded Revenue of Rs.343 Crs during Q2FY23, as against Rs. 400 Crs in Q2FY22
Revenue for H1FY23 stood at Rs.786 Crs, as against Rs.694 Crs in H1FY22
The decline in revenues is due to muted demand scenario experienced in the overall textile industry this quarter.
EBIDTA for Q2FY23 stood at Rs. 31 Crs as compared to Rs.42 Crs for Q2FY22, a de-growth of 27%.
EBIDTA margins for Q2FY23 stood at 9.0% as compared to 10.6% in Q2FY22, a de-growth of 155bps.
Volatile raw material prices put pressure on the EBITDA margin
EBIDTA for H1FY23 stood at Rs. 75 Crs as compared to Rs.73 Crs for H1FY22, a growth of 3%.
EBIDTA margins for H1FY23 stood at 9.6% as compared to 10.5% in H1FY22, a de-growth of 95bps.
Net profit after tax for Q2FY23 stood at Rs.11 Crs as compared to Rs.20 Crs for Q2FY22
Net profit after tax for H1FY23 stood at Rs.30 Crs as compared to Rs.30 Crs for H1FY22
EPS for Q2FY23 stood at Rs. 0.56
EPS for H1FY23 stood at Rs. 1.52
We target to reduce debt by Rs. 35-40 Crs in FY23 out of which Rs.22 Crs has already been paid by Sept 2022.