Vaibhav Global's consolidated net profit tumbled 45.64% to Rs 22.93 crore in Q2 FY23 from Rs 42.18 crore reported in Q2 FY22.
Revenue from operations rose 1.81% to Rs 646.26 crore in quarter ended 30 September 2022 as against Rs 634.79 crore recorded in the same period a year ago.
Consolidated profit before tax stood at Rs 31.17 crore, down 46.5% from Rs 58.30 crore posted in the corresponding quarter previous year. The company's total expenses rose nearly 6% year on year to Rs 617.30 crore in Q2 FY23.
EBITDA margin declined to 8.1% in Q2 FY23 as compared to 11.5% reported in Q1 FY23. The fall in the EBITDA margin was attributed to YoY lower gross margins due to product mix and prices not passed on fully and conscious investment on digital & broadcasting network.
The board of directors of the company has declared second interim dividend of Rs 1.50 per equity share. The record date for the same is 5 November 2022 and the dividend shall be paid/dispatched to the shareholders within 30 days from the date of declaration.
Commenting on the performance for Q2 FY23, Sunil Agrawal, managing director of Vaibhav Global said, During the quarter gone by, we registered low single digit revenue growth, which is promising on the backdrop of current high inflationary environment in western economies. While the quarter looks soft, our 3 years compounded annual growth stands at 10% or 33% over Q2 FY20. Our margins, which bottomed out in Q1, have started seeing a sequential improvement and we expect to continue to improve in H2.
We continue to monitor macro environment & business trends and believe that we have the team and the experience to effectively manage our business in any environment. We believe that the long-term demand remains strong and our business model robust, he stated.
Agrawal further added, Amidst current broader economic challenges, we have seen a visible sequential improvement during last few months with revenue trends improving month-over-month and believe that this transient phase will be behind us soon. Considering current macro environment, we expect to deliver 2-4% topline growth with 8-9% EBITDA margin this financial year. Our mid-term outlook remains intact and we expect to deliver mid-teens revenue growth in subsequent years with operating leverage.
Meanwhile, the company's board has approved the appointment of Nitin Panwad, as Chief financial officer (Group CFO) under the category of whole time key managerial personnel of the company effective from 27 October 2022, in place of Vineet Ganeriwala, who has been elevated as President - Shop LC Global Inc. Hence, Ganeriwala ceased from the position of Group CFO with effect from 27 October 2022.
Vaibhav Global is engaged in the processing of gemstones, such as fire opal, apatite, emerald and various other precious and semi precious stones.
Shares of Vaibhav Global rallied 4.95% to Rs 359.30 on the BSE.
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