Vardhman Textiles: Reported financials


01 February 2023, Mumbai

Vardhman Textiles, headquartered in Ludhiana, whose innovative yarns & textiles are a trademark of the firm, reported its financials.

The Vardhman Textiles' EBITDA for the quarter showed a significant decrease of 46% YoY and 32% QoQ due to lower sales and reduced gross margins. Vardhman Textile's gross margin declined to 37% from 52% YoY and 43% QoQ due to a drop in yarn prices and high-cost cotton inventory, leading to the lowest EBITDAM of 7.3% in Q3FY23 compared to 24.2% YoY and 14.6% QoQ.

Despite this, the recommendation remains to BUY with a revised Dec-23 target price of Rs440, as the earnings are believed to have hit bottom and there are indications of improvement with lower cotton prices and improving yarn-cotton spread.


Latest Textile Events

Author’s Posts