October 13, 2016 / 17:36 IST
ICICI Securities has come out with its second quarter (July-September) earnings estimates for the Apparels sector. The brokerage house expects
Vardhman Textiles to report net profit at Rs 346.2 crore, up 94.2 percent quarter-on-quarter.Revenue is expected to decrease by 0.4 percent Q-o-Q (down 8.8 percent Y-o-Y) to Rs 1502.7 crore, according to ICICI Securities.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 9.7 percent Q-o-Q (down 8 percent Y-o-Y) to Rs 282 crore.
ICICI Securities' report on Vardhman TextilesConsolidated revenues are likely to decline 8.8% YoY to Rs 1502.7 crore on account of sale of stake in Vardhman Yarns and Threads. On the segmental business front we expect the yarn volumes to increase by 2% YoY, while the fabric volume is expected to increase by 7% YoY. Consolidated Operating margins are likely to increase marginally by 16 bps to 18.8% on account of higher margins in the acrylic business. On the operational front, Vardhman's performance is expected to be moderate. However owing to stake sale (40%) in Vardhman Yarns and Threads, we expect exceptional income to the tune of Rs 210 crore to boost the consolidated net profit to Rs 346.2 crore v/s net profit of Rs 125 crore in Q2FY16. Excluding the exceptional profit, net profit is expected to increase by 9% YoY to Rs 136.2 crore.
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