Vardhman Textiles’ consolidated revenue for Q2 registered a 1.9 per cent year on year increase. Ebitda for the quarter fell by 36.6 per cent year on year with a corresponding margin contraction of 789 bps. Ebitda margin for the quarter stood at 13 per cent. This marginal contraction was led by higher cost of material consumed as proportionate to sales.
Profit after tax for the quarter showed a year on year decline of 71 per cent. This was mainly on account of a sharp decline in other income from the corresponding quarter of last year.
Vardhman is among the biggest names in textiles in India, with one of the largest spinning and fabric capacities. This textile giant has rapidly modified its business strategies to carve its own niche regardless of the presence of several small- and medium-level players with the shortest lead times.
The company has been able to sustain its volume by adding new customers and shortening production lead times which was possible due to a big in-house production capacity from yarn to fabric.
The product basket is diversified. It is now not only in cotton but creates blends like cotton tencel stretch, cotton modal super stretch and difficult products like bi-stretch.
