Home Latest News Vishal Fabrics Q4 net income rises to Rs 20 crore

Vishal Fabrics Q4 net income rises to Rs 20 crore

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Ahmedabad-based Vishal Fabrics, one of the largest manufacturers of denims, on Thursday reported a 41 % jump in its net income at Rs 20 crore for the March quarter, on better margins and higher sales.

The Chiripal Group flagship reported a 10 % growth in sales at Rs 426 crore during the quarter and 100 bps gain in margins to 4.6 %, the company said in a statement.

Vishal, which commenced operations in 1985, is the fifth largest manufacturer of premium denim fabrics with an annual capacity of 80 million metres (mm). It is being expanded to 100 mm this year on completion of the ongoing expansion of adding two more dyeing lines at a capex of Rs 30 crore.

For the full fiscal year, company reported a 60 % growth in income at Rs 1,547 crore from Rs 968 crore in the pandemic-hit FY21. The company earned a net income of Rs 69 crore, up 281 per cent from Rs 18 crore as its margins increased to 4.5 %  from 1.9 % year-on-year, said Brijmohan Chiripal, Managing Director of Vishal Fabrics.

Vishal focuses on fully cotton denim manufacturing unlike industry leaders, including Arvind Mills (160 mm capacity), Jindal Worldwide (140 mm), Chiripal Group entity Nandan Denim (110 mm), which offers cotton and non-cotton demin.

The company’s fabric composition consists of 100 % cotton, cotton spandex, cotton-poly, cotton-poly spandex, cotton modal, and cotton tencel.

Despite challenging environment, FY22 got us the highest-ever revenue and profit, Chiripal said.

The company also announced the elevation of its Group Chief Financial Officer Vinay Thadani as the new Chief Executive.

The company has reduced its debt by Rs 9 crore in the quarter and will reduce it by Rs 35-40 crore in FY23, Thadani said.

(PTI)