15 November 2022, Mumbai:
For the second quarter Vishal Fabrics’ net profit fell by 44 percent. Revenue for the quarter declined by 14 percent. During the quarter, the overall demand scenario remained muted owing to ongoing economic challenges, volatile cotton prices and global inflationary pressures.
As a result, Vishal’s capacity utilization levels were on the lower side, impacting margins negatively. But the company is 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, the company remains confident about the long-term growth prospects for the Indian textile sector as well as its capacity to raise utilization levels and get back the revenues at normalcy.
Vishal Fabrics, based in Ahmedabad, is a flagship company of the Chiripal Group. Vishal Fabrics caters to the premium and the super-premium end of the denim segment.The company is also expanding its overseas presence by adding new markets in Latin America and Europe. Vishal Fabrics has no plans to go into garments and apparels and will be confined to the B2B segment.
Vishal Fabrics is aiming at a Rs 2000 crore topline in the next two fiscals. The denim maker is also investing in the expansion of its current capacity to increase denim production.
