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Last Updated : Oct 13, 2016 05:36 PM IST | Source: Moneycontrol.com

Vardhman Textiles Q2 PAT seen up 94% to Rs 346.2 cr: ICICI Sec.

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.

 
 
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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 Textiles

Consolidated 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.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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First Published on Oct 13, 2016 05:36 pm
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