Q1FY22 Result Analysis
- The Revenue from Operations of the company has increased from 24% to Rs. 682 Cr. in the quarter ended 30th June 2021 from Rs. 550 Cr. in the quarter ended 30th June 2020. Quarter on Quarter the revenue of the company has also increased from 2.4% from Rs. 666 Cr. in Q4FY21.
- The Earnings before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of the company have also increased from 24.2% YoY from Rs. 74 Cr. in Q1FY21 to Rs. 91 Cr. in Q1FY22 while quarter on quarter, the EBITDA of the company has also gone up by 16.5% from Rs. 78 Cr. in Q4FY21.
- The EBITDA margin has remained flat year on year at 13.4% in Q1FY22. Whereas on quarter on quarter basis, the EBITDA margin of the company has expanded by 140 bps QoQ from 12% in Q4FY21.
- The Profit Before Tax (PBT) of the company has also increased significantly by 77.7% YoY from Rs. 67 Cr. in Q1FY21 to Rs. 119 Cr. in Q1FY22. Sequentially, the PBT of the company has increased from 64.8% from Rs. 72 Cr. in Q4FY21.
- The Net Profit of the company has also increased impressively by 86.8% YoY from Rs. 53 Cr. in Q1FY21 to Rs. 99 Cr. in Q1FY22. Sequentially, the same has increased by 76.4% QoQ from Rs. 56 Cr. in Q4FY21.
- The Net Profit Margin of the company has also expanded by 490 bps YoY and 610 bps QoQ to 14.5% in Q1FY22.
Vaibhav Global- Q1 FY22 Result
2) Quarterly Highlights:
- Robust 22.8% YoY growth in retail revenues.
- Strong Return Ratios with ROCE at 60% and ROE at 31% (TTM Basis)
- Free Cash Flow at Rs. 32 Cr.
- Unique Customers (TTM basis) improved 4,72,278 from 4,25,921 in the same period the previous year.
- Expansion of retail footprint to Germany (Shop LC GmbH)
- Declared interim dividend of Rs. 1.5 per equity share
Earnings Call Highlights:
- The company gained traction on TV Home Shopping, e-Commerce, and several emerging platforms.
- The company gains operating leverage to expand EBITDA for a good quarter.
- Declared dividend for Q1FY22 of Rs. 1.5 per equity share.
- Currently, the company is having about 25,000 unique items available to customers and tends to add about 100 to 150 new products every day by keeping a close eye on emerging trends, fashion, and needs.
- Retention rates stood at 45.7% on a TTM basis compared to 50.5% for the same period last year.
- The company achieved 21% growth in both US and UK in their local currencies.
- The company is expanding through marketplaces in new geographies such as in Canada, Germany, and Japan.
- Also, it has commenced retail operation in Germany with a launch of the local website and TV Channel.
- With 38 million households, Germany is Europe’s largest home shopping market and Shop LC GmbH has now started operating, broadcasting from a partner studio to over 17 million households across the country.
- Soon the company will be starting operation from its studio in Dusseldorf.
- Launch in Germany represents entry into 3rd significant retail market globally.
- Another key initiative implemented in the recent past is the launch of TJC Plus for UK Customers.
- TV includes customers accessing our products through our proprietary TV channels that reach their homes, both on conventional TV media as well as free to air channels on OTA platforms.
- TV revenues have grown by 24.6% year-on-year to Rs. 426 crore and. TV contribution to the retail revenue is now at 64% with the rest coming from the web segment as the business gains greater balance.
- The reach of TV networks by the end of Q1FY22 was 102.5 million TV Homes which is not further enhanced by 17 million households added in July in Germany.
- Taken some new distribution in the US, especially OTAs, and the beauty channel in the UK.
- New registrations during TTM basis continue to be strong and came in at 2.9 lakh compared to 2.37 lakh in the corresponding period of the previous year.
- The web includes online purchases on our proprietary websites and shopping apps apart from popular marketplaces and social commerce.
- Web revenues by 19.7% year-on-year to Rs. 243 crore during Q1 FY22
Solar Power Generation and Others:
- The company invested in solar power generation and 100% of our Jaipur manufacturing plants' power needs are now covered by green energy.
- Also invested in rainwater harvesting, effluent treatment, tree plantation, and most recently Miyawaki forest on a one-acre site in Jaipur.
- Reiterates the guidance of 16% to 18% retail revenue growth in constant currency in old geographies of the US and UK for the current financial year.