Vaibhav Global hopes to sustain its revenue growth in future

Electronic retail player Vaibhav Global witnessed a 14 percent growth in its revenues in the first quarter of FY17. This trend may continue, says Puru Aggarwal, CFO, Vaibhav Global. He is confident of good demand going ahead.Vaibhav deals in fashion accessories and lifestyle products through television, web and b2b sales. It operates in America and United Kingdom. Aggarwal says the current composition of sales is 80 percent from television and 20 percent from web. He claims that the margins from both are equal.Below is the verbatim transcript of Puru Aggarwal's interview to Reema Tendulkar and Prashant Nair on CNBC-TV18.Reema: It’s about a 14 percent revenue growth should we expect an acceleration in demand in the second half of the year.A: We see good demand going ahead as well, both the markets US as well as UK we are expecting to be stable. US in particular, UK we have little apprehension in the beginning because of Brexit, but so far we did not have seen any impact there, so we are very confident of the demand ahead.Reema: Could you give us the current composition of sales from TV and web and is that going to change and also are there margins different if you sell on TV vis-à-vis if you sell on the web?A: The composition between TV and web is almost 80:20 and margins also are similar. The difference is only the mechanism so as far as margin and rest of the stuff is similar.Prashant: But surely running a TV station is more expensive and you said its 24x7 as compare to selling jewellery online.A: Yes, there is a fixed cost to it and that’s how we have benefit of leveraging. The movement top line is up it flows to the bottom, because costs is fixed the broadcasting and content cost.Prashant: What is the channel call?A: In USA it is called liquidationchannel.com on web and LC channel on TV. In UK it is called The Jewellery Channel (TJC).Reema: Increasingly a lot of the sales are moving online and over there we have seen higher competition and a lot of discount war is also taking place to some extent, is that going to hurt margins for the company?A: If you look at margins have expanded in last few quarters. This quarter itself is 64 percent though it is likely lower than last year’s quarter, but 64 percent itself is a very healthy number and last year’s quarter had a particular feature because we had some policy change in accounting, so margins have truly expanded in last few quarters. We do not see any pressure on margin, going forward also we see pretty stable margin.